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Cost of Developing a Grocery Delivery App Like Instacart

  • 4 min

Do you know what sells more than hot pancakes? Well, you guessed it right! It’s groceries.

Everyone needs groceries – from well-paid tech entrepreneurs to minimum wage workers. And especially in a post-COVID world, grocery shopping trends have changed more than ever.

No longer do we see people stepping out to shop for their daily grocery requirements.

Changing Grocery Shopping Scenario

According to a survey in the US by Shopkick:

  • 1) 76% of buyers are changing their buying habits in response to COVID-19.
  • 2) 85% respondents said that brand names don’t matter when they are shopping for necessities
  • 3) 60% revealed that they are worried about shopping in-store.

The changing landscape makes online grocery segment suddenly a hot bucket of opportunities.

If you are thinking of an exciting entrepreneurial opportunity, grocery app development can help you shoot for the stars.

Major global eCommerce players are eagerly testing and trying the best eCommerce business models to launch their online grocery operations.

From Amazon to Jio, Grofers to Instacart, there are several success stories of grocery app launches, making it a viable and tested industry segment.

What is Instacart & Why Does it Matter?

Instacart is one of the most popular online grocery delivery service operational in the USA & Canada.

The success of this startup founded by Apoorva Mehta is nothing short of a fascinating tale.

Started from San Francisco in 2012, Instacart currently operates all over the US & Canada with hundreds of store partners like Real Canadian Superstore, T&T Supermarket, Walmart, M&M Food Market, Costco, Farmers Market, Whole Foods Market & many more.

Having received six rounds of funding from noteworthy investors, including Sequoia Capital, Instacart enjoyed a valuation of $7.87 billion in its last funding round during 2018.

The growth trajectory as well as the entire business model has made several serial entrepreneurs interested in grocery app development recently.

Revenue Model of a Grocery Delivery App like Instacart

Apps like Instacart are known to run on an aggregator-based model with multiple revenue streams.

If you are thinking of starting a grocery delivery service, such a model is extremely viable. You can directly start enjoying revenues from the following streams:

A. Delivery Charges

This is the first and foremost avenues for generating revenues. A grocery delivery app similar to Instacart charges a standard sum for delivering orders to the doorstep.

It can range from as low as $3.99 to $9.99 per delivery based on the urgency and order amount.

B. Membership Fee

Almost all the grocery delivery apps run their own membership programs. Take the example of Instacart.

It has an annual membership called as Instacart Express priced at $99/year.

Members get exclusive benefits like free deliveries for the entire year along with special discounts and other privileges.

Membership fee can be an exciting goldmine as it opens avenues for recurring payments with high chances of abandonment just like gym memberships.

C. Listing fee or special price

Many grocery app partners (stores) list their products online on the grocery app at a special price, which is more than the store price.

A hike or increase in prices is because of the listing fee of the app or the platform, which is yet another amazing revenue magnet.

Why is this the right time for grocery delivery app development like Instacart?

1. COVID-19 Situation

Lockdowns, quarantine and general scare about the coronavirus is motivating people to stay indoors for longer periods of time.

On the top of it, hygiene and sanitization concerns about public places like supermarkets is compelling users to buy for their daily needs online.

In such a situation, the online grocery delivery market is sure to flourish and grow.

2. Booming Online Grocery Industry

As depicted earlier, more and more grocery buyers are changing their shopping habits. Now, more families and individuals are spending online than ever.

Already the online grocery ecosystem was growing at a phenomenal rate. In a post-corona world, the situation is only expected to improve for online grocery startups.

3. Rising Middle Class & Millennial Aspirations

All over the world, middle class population is rising.

According to a report by Cushman & Wakefield Red, millennial population is the largest demographic group alive. And similar patterns are observed for the middle class.

What’s the best thing about these segments? They are aspirational and want to try new things out, which is a boon for any digital startup.

Must-have Features for a Grocery Delivery App

Now that you have a fair idea about why to go ahead with grocery app development, here are some essential features you must think while developing a mobile app.

  • User profiles
  • Browse all Products
  • Search Products
  • Schedule Delivery
  • Order Management
  • Order Tracking
  • Payment Gateway for online payments
  • Deals and offers
  • Help and Support
  • Settings
  • Order Dashboard
  • Store Management
  • Accept/reject orders
  • Payment Management

    Manage Customers and Deliveries

  • Loyalty Points Management
  • Delivery Request Notifications
  • Accept/Reject Delivery Requests
  • Check Customer Location via GPS
  • In-app Call/Chat with Customer/Store
  • Delivery Confirmation
  • Store on-boarding and management
  • Centralized / decentralized inventory management
  • Payment management
  • Feedback, review and ratings
  • Customer chat & call support
  • Real-time app analytics
  • Push notifications
  • Social media sharing and communication
  • GPS tracking

READ MORE: Everything You Need to Know about Building an Online Grocery App

Cost of Grocery Mobile App Development

Building a grocery mobile app can be quite a complex ordeal.

When it comes to the cost of grocery app development, a fair estimate would be anywhere between $3,000 to $10,000.

The broad range is a result of the features required for the mobile app. The more features your app needs, the higher will be the cost.

Confused about what features might be ideal for your app? It is always better to consult a grocery app development company before finalizing anything.

Wrapping Up

Grocery domain can be said to be running on the one of the oldest Food delivery business models. With digital acquiring the front seat, it is suitable to transition from your existing offline grocery store to online or launch an exclusive grocery delivery app altogether.

Interested in building a grocery delivery app that would give you phenomenal edge? Get in touch with our expert grocery app development team now.

Nikunj Shingala

Nikunj is a Founder & CEO of a supreme Web and Mobile app development company. With great entrepreneurial skills and visionary leadership, he has always rendered effective accomplishments for the company. Client Satisfaction and connect are his forte and so is percipient business development. He is known for delivering the best solutions and to make client business grow effectively!

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