What would you rather do? Go to the supermarket to find the items on your list, wait in line, pay the bill, or order groceries online and have them delivered to your door. Most people prefer to order groceries online and save money with discounts and promo codes.
The market for grocery delivery apps is forecasted to grow to USD 652.45 billion at a CAGR of 19.43% by 2027.
A grocery delivery app can be a great idea for your business. Grocery delivery companies can be large multinational corporations or small local businesses offering various products and services. To ensure customers receive their orders promptly, they use logistics and sophisticated software to manage inventory, orders, and delivery routes.
Entrepreneurs looking to take advantage of technological advances and changing consumer preferences in the retail sector can see the grocery delivery business as a great opportunity. But the question is, “How much does it take to build an Instacart-style grocery delivery app?” So, let’s first examine Instacart.
Instacart
Instacart, a popular online grocery delivery service, allows customers to order groceries from their local store and have them delivered to their homes within hours. Apoorva Mehta (an ex-Amazon engineer) founded the company in 2012. It is located in San Francisco, California.
Instacart works on a marketplace model. Customers are connected with personal shoppers who pick up and deliver items from local shops. Instacart partners with many grocery retailers, including Kroger and national chains, Walmart, and regional and independent chains.
A number of employees: 3,000 (as of 2022).
Revenue: 180 crores USD (as of 2021).
Customers can shop online or through the Instacart website to find groceries at their preferred stores. They can also choose from same-day delivery or scheduled delivery. In addition, customers can track their orders in real-time and communicate with their shoppers whenever they need.
Instacart offers many features and services that will enhance your grocery delivery experience. There are also discounts and promotions throughout the year. For example, Instacart Express offers free delivery for new users.
What is the Instacart process?
Instacart, a popular grocery and delivery app, delivers the order within five hours after the order is placed. The store allows users to view and add products to their carts. Users can also schedule delivery.
Instacart does not have an inventory. This means that if the item listed is out of stock, the app will help users locate replacements.
For orders above $35, the user will be charged $3.99 for scheduled delivery and $2.99 for delivery within 2 hours. It charges $5.99 for orders that are delivered in less than an hour.
For orders below $35, the application will charge $7.99 for two-hour delivery and $9.99 per hour for one-hour delivery.
Instacart memberships are $99 and include free delivery.
A Business Model for an On-Demand Grocery Delivery App
The business model for a grocery delivery app development company includes three models to make money selling goods and services. These are the commission model and the subscription model. We have all the details:
Commission Model:This commission model is for on-demand app development. It involves the application of different commission fees on different goods. The amount depends on what products are most in demand or trending.
Subscription Model: As the name implies, this is a subscription-based revenue system that includes different offers depending on which subscription plan customers purchase.
Service Fees: The revenue model is based on earning profits through online stores.
Team Structure for Grocery Delivery App Development
A development team that includes Q.A. specialists, UX/UI designers, and app developers must create an on-demand grocery delivery app. Here are the skills you should look for in a great team.
App Developers: iOS App Developers, Android App Developers, Back-end App Developers, etc.
App designers with expertise in grocery delivery app design, graphic design, and many other areas.
Project Manager: This person has to have both managerial and technical knowledge to solve a problem.
App testers: This refers to quality assurance. Q.A. Experts have relevant skills, such as bug tracking and testing.
What does it cost to develop an on-demand grocery app?
To estimate the cost of a grocery delivery app like Instacart, the following must be considered: how complex the app is, the number of platforms it will launch on, where it will launch, and who it targets.
- App developers in Eastern Europe charge around $80 to $150 an hour.
- Groceries-app developers in South Africa charge around $50 per hour.
- Indian app developers cost around $10 to $80 per hour.
- The development cost of an on-demand grocery app with limited features Coding depends on the following:
- Technical documentation can cost between $1000 and $2000.
- Testing and QA cost between $2000 and $4000.
- UX/UI design can cost between $1500 and $3000.
- The back-end and front-end development costs approximately $10,000 to $20,000
- The average cost to build an app like Instacart for one platform like Android or iOS is between $10,000 and $20,000 The cost increases as more features are added. Make a list of everything you must include in your grocery delivery app.