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How Much Does It Cost to Make an On-Demand Last Mile Food Delivery App?

Updated: May 9, 2023

Every individual no matter on how a lower level he is operating is highly indulged in making his ends meet so much so that he hardly finds a window or a slot for the physical commute to a shopping mall or for running other errands the most basic of which are buying groceries and getting food from his favorite restaurant. The post covid era has pushed consumers who used to do physical grocery and food shopping to online shopping mostly via apps. This has resulted in rise of OnDemand Food Delivery apps,

Last Mile Food Delivery Apps

Last mile delivery is referred to as the logistical leg of the e-commerce that comprises picking up the order from the place where the order has been placed. Last mile food delivery is the transfer of orders from a shop or a local restaurant to the customer’s doorstep involving various logistical means like a van, bike, or an unmanned vehicle anticipated for the future.

Rising Utility of the On-Demand Last Mile Food Delivery App in the Post-COVID Era

With the onset of COVID and the restrictions imposed in order to break the chain of contagion the utility and demand of on-demand last mile food delivery app has increased as with the restrictions and smart lockdowns imposed it is the most convenient and time-saving solution for the restaurants to keep their business running. Similarly, it is the most beneficial solution for users and customers. An estimated 38% increase in the use of the last mile food delivery apps has been recorded over the last year since the onset of the COVID and an exponential spike is recorded with every wave of the disease which in the midst of such dire circumstances has to provide a leap of faith to the restaurant owners and people involved in the business otherwise it could have been a huge fiasco for the food industry. The revenue generated by the restaurants and food outlets relying on last mile food delivery apps has increased by 44% in the last two years.

Components and Features of an On-Demand Last Mile Food Delivery App

An on-demand last mile food delivery app has three integral components to make the delivery system efficient and consistent. A restaurant app, food ordering app, and delivery app.

1. Restaurant App

The food ordering app is the component used by the restaurants where the orders are placed.


It consists of the following features:

  • A dashboard with Data Analytics that analyzes the overall data of the users and orders placed at the restaurant.

  • A tab for updating the profile.

  • Menu Items can be placed with HD images.

  • Management

  • A Separate Tab for adding promotional items or exclusive deals.

  • Pricing

  • The order management system can be thoroughly changed.

  • Categories for cataloging different foods.

  • Payments history can be found in a separate tab.

  • Tax Invoices

Utility for Restaurants:

  • Cataloging menus.

  • Updating the prices of food items.

  • The periodic addition of promotional items.

  • Specification and availability of Items.

1. Food Ordering App

Food ordering app is the component used by the users to place orders upon going through the menu and catalog.


  • Users can view restaurants and special Offers

  • Customers can search different cuisines/restaurant

  • They can place orders conveniently.

  • They can add special instructions

  • Real-time tracking of orders can be done.

  • Multiple deliveries can be made.

  • Address support can let the customers save multiple addresses.

  • In-App chat for coordinating with the restaurant staff or dispatchers.

  • Promo codes and discount vouchers can be availed.

  • Multiple payment options for the customers.

  • Referral programs for friends and family.

Utility for Users:

  • Signup Using Phone Number or Email

  • View Deals and Special Offers

  • Check Restaurant Menu

  • Add Special Instructions

  • Checkout

  • Track their order

  • Add Promo Codes/Discount Vouchers

  • Mark Restaurants as favorites

  • View Order and Transaction History

  • Rate the Service

  • Share their Referral Code

1. Delivery App

The delivery app is the third and last component for the dispatchers to pick the food item from a particular restaurant and transport it to the customer’s doorstep at the given address.


  • Identity and vehicle documents approval for safety and security.

  • Online status can be set.

  • Upcoming orders can be viewed by the dispatchers.

  • Dispatchers are given the prerogative of accepting or rejecting the orders.

  • Navigation to restaurants and customers via maps and GPS.

  • Specification and availability of items can be updated.

  • Order history for the dispatchers is saved in the app.

  • Earnings reports are drafted automatically.

  • In-App chat for coordinating with the customers and restaurant staff.

  • Referral programs.

Utility for Drivers:

  • Uploading and updating identity, vehicle’s credentials and banking information

  • Accept/Reject Orders

  • View Order Details

  • Navigate to Restaurant and Customer

  • Location

Cost of Making an On-Demand Last Mile Food Delivery App

Following the huge success that on-demand last mile food delivery app has conferred on the food and restaurant industry, many startups are bidding to make customized on-demand last mile delivery apps. Even already established outlets that have not yet digitized their business by making the on-demand leg are going along the lines to digitize their outlets with on-demand last mile food delivery apps. If you are willing to exponentiate the revenue of your business you can let OnDemand Startup make and develop a customized app tailored with specific custom features in harmony with your food enterprise. With OnDemand Startup an on-demand last mile food delivery app can make you incur 10,000-20,000 USD depending upon the range of customized features that you want to incorporate in the app in accord with your food enterprise.

Value Added Advantages

OnDemand Startup comes with the following extended advantages for you:

  • 200 hours’ customization for the app.

  • A warranty of 60 days

  • Deployment of engineers on your servers.

  • Extended and cost-efficient repair and maintenance packages.

  • Yearly maintenance packages.

  • Ease and convenience in procurement, deployment, and operationalization.

How much does it cost to host an On-Demand Last Mile Food Delivery app?

For starters, minimum hosting charges vary from 150-500 USD/ month depending upon the number and quality of servers, hosting codes and load or usage. We are disposed to deploy top-notch AWS hosting for the system.

Benefits of Using Our OnDemand Last Mile Food Delivery solution

In the startup space, the time of launching and initial seed investment is critical to the startup's success. Building a last mile food delivery solution from scratch takes 3-4 months of development time as well as costs 30000- 45000 USD depending on the range of features that a client wants to inculcate. White labeling an existing solution and creating a replica is also not beneficial as every app should have its unique features. The benefit of our solution is that we redesign our app for you as well as give you the benefit of adding unique features to our existing on-demand solution.

Connect with one of our consultants to learn more about our featured OnDemand Startup solutions and services.

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