How to Develop an App Like Talabat – Cost and Key Features

Moreover, the way consumers order food and daily essentials has evolved significantly over the past decade. In today’s fast-paced urban lifestyles, especially across Gulf countries such as the UAE, Saudi Arabia, Qatar, Kuwait, and Bahrain, users now expect instant access, quick deliveries, and real-time tracking through their smartphones. Consequently, traditional dine-in or phone-based ordering methods struggle to keep up with these demands. This shift has created a growing opportunity for businesses aiming to develop an app like Talabat that delivers speed, convenience, and reliability at scale.

As a result, shift has fueled the rapid rise of on-demand food and grocery delivery platforms, with Talabat emerging as one of the most dominant players in the Middle East. What started as a food ordering app has evolved into a multi-category delivery platform, offering restaurants, groceries, pharmacies, and even pet supplies through a single mobile application.

Moreover, entrepreneurs and businesses, the success of Talabat presents a compelling opportunity. Building a similar platform allows startups to tap into a rapidly growing market driven by mobile-first users, high purchasing power, and strong demand for convenience. However, developing an app like Talabat is not just about listing restaurants and adding a checkout button. It requires robust logistics, real-time data processing, scalable infrastructure, and seamless user experience.

In contrast, we’ll explore everything you need to know about how to develop an app like Talabat, including market stats, core and advanced features, development steps, team requirements, monetization models, costs, and FAQs.

Market Stats: Online Food & Grocery Delivery Industry

After that on-demand delivery market continues to experience strong growth globally, with the Middle East emerging as one of the fastest-growing regions.

Global Market Overview

• The global online food delivery market was valued at approximately USD 150 billion in 2023
• It is projected to surpass USD 320 billion by 2030, growing at a CAGR of 10–12%
• Grocery delivery is growing even faster, with 15–18% YoY growth

Middle East & Gulf Market

• The MENA food delivery market is expected to grow at 12–15% annually
• UAE and Saudi Arabia contribute over 60% of regional demand
• More than 70% of urban consumers in the Gulf order food online at least once a week

Key Growth Drivers

• High smartphone penetration
• Busy urban lifestyles
• Growth of cloud kitchens
• Preference for cashless payments
• Expansion of quick commerce

At this stage trends explain why platforms like Talabat continue to expand and why building a Talabat-like app remains a lucrative business opportunity.

Core Features of Develop an App Like Talabat

Core features define the basic functionality that users, restaurants, and delivery partners expect.

1. User Registration & Profiles

• Phone number and social login
• Address management
• Order history and preferences

2. Restaurant & Store Listings

• Categorized listings (restaurants, groceries, pharmacies)
• Filters by cuisine, rating, price, delivery time
• Real-time availability

3. Search & Discovery

• Keyword-based search
• Location-based suggestions
• Popular and trending sections

4. Menu & Product Management

• Detailed menus with images
• Customization options
• Add-ons and combo deals

5. Cart & Checkout

• Multiple payment options
• Promo codes and offers
• Tip options for riders

6. Order Tracking

• Real-time order status
• Live map tracking
• ETA updates

7. Notifications

• Order confirmations
• Delivery updates
• Offers and discounts

Advanced Features of Develop an App Like Talabat

Advanced features enhance user engagement, retention, and operational efficiency.

1. AI-Based Recommendations

• Personalized restaurant suggestions
• Smart reordering
• Time-based food recommendations

2. Multi-Vendor Management

• Separate dashboards for restaurants and stores
• Inventory and menu updates
• Order acceptance and preparation status

3. Delivery Partner App

• Rider onboarding
• Route optimization
• Earnings tracking

4. Dynamic Pricing & Surge Logic

• Delivery fee adjustments
• Peak-hour pricing
• Distance-based calculations

5. Subscription Programs

• Free delivery plans
• Exclusive discounts
• Priority delivery

6. Loyalty & Rewards

• Points-based systems
• Referral programs
• Cashback offers

7. Analytics & Reporting

• Sales dashboards
• Customer behavior insights
• Performance metrics for vendors

Development Process: Step-by-Step

Building an app like Talabat involves multiple technical and strategic stages.

Step 1. Market Research & Business Model

• Choose target geography
• Define categories (food only or multi-service)
• Study competitors and pricing models

Step 2. Feature Planning & MVP Scope

• Identify must-have features
• Define MVP to control cost
• Create a phased roadmap

Step 3. UI/UX Design

• Mobile-first design
• Minimal checkout steps
• Clear navigation
• Arabic & English support

Step 4. Backend Development

• User and vendor management
• Order processing engine
• Payment and commission logic
• Notification services

Step 5. Mobile App Development

• Customer app (iOS & Android)
• Vendor app
• Delivery partner app

Step 6. Integration

• Payment gateways
• Maps & GPS
• SMS and push notifications

Step 7. Testing & QA

• Functional testing
• Performance testing
• Security testing
• Load testing

Step 8. Launch & Scaling

• Soft launch in one city
• Monitor performance
• Expand region-wise

Required Team Structure

A Talabat-like platform requires a strong cross-functional team.

Product & Management

• Product Manager
• Project Manager

Design Team

• UI/UX Designer
• UX Researcher (optional)

Engineering Team

• Backend Developers
• Mobile App Developers (iOS & Android)
• Frontend Web Developers
• DevOps Engineer

Operations Team

• Vendor onboarding managers
• Delivery operations team
• Customer support staff

Marketing & Growth

• Digital marketers
• ASO & performance marketing experts

Typical Team Size

• MVP: 10–15 members
• Growth stage: 25–40 members

Monetization Methods for Develop an App Like Talabat

Monetization plays a crucial role in determining the long-term sustainability of an on-demand food and grocery delivery platform. Apps like Talabat rely on multiple revenue streams, rather than a single source, to balance operational costs, marketing spend, and profitability. Below are the most effective monetization models used by Talabat-style platforms.

1. Commission from Restaurants & Stores

The primary revenue source for most food delivery platforms is commission charged to restaurants and partner stores.

How it works:

• Platforms charge 15% to 30% commission per order
• Commission varies based on:
  • Order volume
  • Restaurant category
  • Exclusive partnerships
  • City or region

Why it works:

• Scales directly with order volume
• Provides predictable recurring revenue
• Encourages platforms to help vendors grow

However, maintaining a fair balance is essential. Excessive commissions can lead to vendor dissatisfaction or churn.

2. Delivery Fees Charged to Customers

Delivery fees contribute significantly to revenue, especially during peak hours.

Key models include:

• Flat delivery fee
• Distance-based pricing
• Time-based surge pricing
• Weather or demand-based adjustments

These fees help cover:

• Rider payouts
• Fuel costs
• Operational expenses

To maintain user satisfaction, delivery fees are often combined with promotions or subscriptions.

3. Subscription & Membership Plans

Subscription programs are increasingly popular in the Gulf region.

Examples include:

• Free or discounted delivery
• Exclusive restaurant deals
• Priority order handling

Benefits:

• Recurring monthly or annual revenue
• Increased order frequency
• Strong user loyalty

Subscription users typically place 30–50% more orders than non-subscribers.

4. Sponsored Listings & Featured Placement

Restaurants and brands can pay for higher visibility within the app.

Common options include:

• Sponsored restaurant listings
• Featured banners on the home screen
• Priority placement in search results

This model:

• Generates high-margin revenue
• Helps vendors increase visibility
• Does not impact user experience when done subtly

5. In-App Advertising & Brand Campaigns

Beyond restaurants, platforms can partner with FMCG brands and food chains.

Advertising formats include:

• Banner ads
• Branded food collections
• Campaign-based promotions
• Seasonal brand takeovers

however, model works particularly well for grocery and quick-commerce categories.

6. Surge Pricing & Dynamic Fees

During peak demand periods, platforms apply surge pricing to optimize supply and demand.

Used during:

• Lunch and dinner rush
• Weekends and holidays
• Bad weather conditions

Dynamic pricing:

• Improves delivery partner availability
• Increases platform margins
• Helps maintain service levels during peak hours

7. Vendor Subscription Plans

Some platforms offer monthly or yearly subscription plans for restaurants.

These plans may include:

• Reduced commission rates
• Access to analytics dashboards
• Marketing and promotional tools
• Priority support

This model adds predictable B2B revenue.

8. Service & Convenience Fees

Additional service fees may be applied to orders.

Examples include:

• Small order fees
• Packaging fees
• Platform convenience fees

While small per order, these fees add up significantly at scale.

9. Data & Analytics Services for Vendors

Advanced analytics tools can be offered as premium features.

Insights include:

• Customer behavior
• Popular dishes
• Demand forecasting
• Performance benchmarks

Restaurants are often willing to pay for data-driven growth insights.

10. Cross-Selling & Multi-Category Expansion

Talabat-style apps often expand beyond food delivery.

Additional categories include:

• Groceries
• Pharmacy
• Flowers
• Pet supplies

Each new category opens additional revenue streams without significantly increasing user acquisition costs.

Final Monetization Strategy Insight

Successful Talabat-like platforms rely on a blended monetization approach, combining commissions, subscriptions, advertising, and service fees. The key to long-term success lies in balancing revenue generation with user experience and vendor satisfaction.

Platforms that focus on value creation for customers, vendors, and delivery partners achieve sustainable profitability.

Cost to Develop an App Like Talabat

MVP Development Cost

Includes:

• Customer app
• Basic vendor panel
• Payment integration
  💰 $40,000 – $70,000

Mid-Scale Platform

Includes:

• Vendor & rider apps
• Real-time tracking
• Loyalty programs
  💰 $80,000 – $150,000

Enterprise-Level App

Includes:

• AI recommendations
• Advanced analytics
• Multi-country scalability
  💰 $180,000 – $300,000+

Ongoing Costs

• Cloud hosting & CDN
• Customer support
• Marketing & promotions
• Maintenance & updates

Challenges in Develop an App like Talabat

Building a food and grocery delivery platform like Talabat is a complex undertaking that goes far beyond app development. While the demand for on-demand delivery is high, executing the model at scale presents several technical, operational, and business challenges. Below are the most critical hurdles businesses face when developing a Talabat-like app.

1. Complex Logistics & Real-Time Delivery Management

One of the biggest challenges is managing real-time logistics across thousands of daily orders. Unlike digital-only platforms, delivery apps must coordinate restaurants, delivery partners, and customers simultaneously.

Key issues include:

• Real-time order allocation to riders
• Route optimization in congested urban areas
• Handling delivery delays and cancellations
• Ensuring accurate ETA predictions

Even minor inefficiencies in logistics can lead to late deliveries, higher fuel costs, and dissatisfied customers.

2. Vendor Onboarding & Retention

Attracting and retaining restaurants, grocery stores, and pharmacies is essential for platform success. However, vendors expect consistent order volumes and fair commission structures.

Challenges include:

• Convincing quality restaurants to join
• Managing menu accuracy and availability
• Handling vendor complaints during peak hours
• Balancing commission rates with vendor profitability

If vendors fail to see value, they may switch to competing platforms.

3. High Customer Acquisition Costs

The food delivery market is extremely competitive, especially in Gulf countries. Users are often influenced by discounts, cashback, and promotions.

This creates challenges such as:

• High marketing and promotion costs
• Low initial profit margins
• Dependency on discount-driven growth
• Difficulty retaining users without incentives

Sustainable growth requires balancing customer acquisition with long-term retention strategies.

4. Thin Margins & Profitability Pressure

Despite high order volumes, food delivery apps often operate on thin margins. Delivery costs, customer support, payment gateway fees, and promotions significantly impact profitability.

Major cost factors include:

• Rider payouts and fuel expenses
• Customer refunds and order issues
• Infrastructure and cloud hosting
• Marketing and promotional campaigns

Achieving profitability requires scale, optimized operations, and diversified revenue streams.

5. Technology Scalability & Performance

A Talabat-like app must handle heavy traffic during peak hours, such as lunch, dinner, weekends, and holidays. Any downtime or slow performance directly affects revenue.

Technical challenges include:

• Handling high concurrent users
• Real-time data syncing
• Low-latency order processing
• Preventing app crashes during traffic spikes

Scalable cloud infrastructure and load testing are critical from the start.

6. Payment & Refund Management

Managing multiple payment methods across regions adds another layer of complexity.

Common issues include:

• Failed transactions
• Delayed refunds
• Disputes and chargebacks
• Integration with local payment gateways

Poor payment experience quickly erodes user trust.

7. Delivery Partner Management

Delivery riders are the backbone of the platform. Managing them efficiently is challenging.

Key concerns include:

• Rider availability during peak hours
• Fair earnings and incentive models
• Safety and compliance
• Reducing rider churn

High rider turnover can disrupt service quality and increase costs.

8. Customer Experience & Support

Food delivery is highly time-sensitive. Even small issues can lead to complaints.

Challenges include:

• Handling wrong or missing orders
• Managing refunds and compensation
• Providing real-time customer support
• Maintaining service quality at scale

Strong support systems and automation help reduce friction.

9. Regulatory & Compliance Issues

Different regions have different rules related to:

• Food safety standards
• Delivery worker regulations
• Data privacy and security
• Taxation and invoicing

Failing to comply with local regulations can lead to penalties or service shutdowns.

10. Competition from Established Players

Competing against established giants like Talabat, Deliveroo, and Careem requires a strong differentiation strategy.

Challenges include:

• Brand trust
• Customer loyalty
• Vendor exclusivity
• Deep-pocketed competitors

New entrants must focus on niche markets, superior service, or unique offerings.

Final Takeaway

While building a Talabat-like app offers strong growth potential, it is not an easy path. Success requires careful planning, scalable technology, efficient logistics, strong partnerships, and a long-term vision for profitability.

Businesses that focus on operational excellence, user experience, and strategic differentiation are far more likely to succeed in this highly competitive space.

Conclusion

The success of Talabat demonstrates how on-demand delivery apps have become an essential part of modern urban life in the Gulf region. With rising consumer expectations for speed, convenience, and reliability, platforms that combine strong technology with efficient logistics are best positioned to win.

For entrepreneurs, choosing to develop an app like Talabat offers access to a high-growth market with multiple revenue streams. However, success depends on careful planning, scalable architecture, strong vendor partnerships, and continuous innovation.

Rather than trying to replicate Talabat entirely, the smartest approach is to focus on a specific niche, city, or service category and expand gradually. With the right execution, a Talabat-like app can grow into a powerful and profitable on-demand platform.

FAQs