Today, the convenience and ease provided by online grocery delivery mobile apps are driving an increased number of users every day. More and more users are adopting online grocery shopping, which has surged the revenue of the market.
The global online grocery market is predicted to expand at a CAGR of around 22.69% and hit $2,827.63 billion by 2032. |
When you look at the market, you’ll see a variety of mobile grocery delivery apps running successfully and generating revenue. Instacart, Postmates, Peapod, and FreshDirect are just a few examples. Among these, Shipt stands out as a top contributor to the industry, showcasing the potential for success in this market.
Per the latest records, the global grocery delivery market will be valued at $640 billion and even more by the end of this year. |
If you are a grocery store owner, run a chain of grocery stores, or are a business person interested in reaping the rewards of the growing online grocery delivery industry, you should build an app like Shipt. Imagine the convenience and time-saving benefits, as well as the relief it could bring to your customers’ busy lives.
How to develop an app like Shipt? What should be the profitable business model, features, tech stack, cost, etc? Don’t get overwhelmed with lots of questions.
This post will discuss reasons to invest in building an app like Shipt, steps to create, revenue models to choose from, and more. By the end of this blog, you will have taken away all the essential and relevant information you need to create a mobile app like Shipt.
Let’s get the ball rolling!
What Is The Shipt Mobile App?
Shipt is an online grocery and food delivery app that offers unique services, fresh food, groceries, products, and more to personal and trusted shoppers. The grocery delivery app provides same-day delivery options for fresh groceries and food from users’ favorite stores.
When did Shipt start? How long has Shipt been around? People usually ask these questions; let’s answer them.
Started operating in 2014, Shipt, a grocery delivery app, is headquartered in Alabama, United States, serving 5000+ US cities, like New York, San Francisco, California, Texas, etc. It’s been in operation for a decade and is still expanding successfully.
How Does Shipt Work?
It is pretty simple to understand the workings of the Shipt app as it involves a number of easy steps; placing an online order, the app customers are required to complete a few steps to get selected groceries delivered to their homes; the steps involved:
1. Install the app
The first step involves installing the Shipt app (Google/Apple) from the app store. Once the installation is done, the app must be registered with a name, email address, and a strong password. After the account has been created, the credentials can be used on Shipt’s web version. The app platform even accepts orders from its website that can be easily browsed from any browser or device. Creating the account involves no cost.
2. Enable the location
Once the app is registered, it is time to log in. Enable the app location, allowing the app to detect the user’s location automatically. The user can enter the address where they desire the groceries to be delivered. The app shows the nearby grocery stores available to accept orders, so users can select stores where they want to buy groceries.
3. Membership & Passes
To understand this step, one needs to understand the Shipt cost, so we have discussed the pricing model. The app is available to download for free from the Play Store and App Store, so if the users want to purchase something, there are two options: Membership & Passes. Membership is available on a Monthly and Annual basis, and annual membership costs $99/year, while the monthly plan costs $14/month. Most people prefer a yearly plan due to its cost-effectiveness. This also makes the user experience smooth, as the users are not required to pay every month. The membership allows users to waive delivery charges as they are free for orders above $35. And then, there are Shipt Passes for users who want to purchase groceries for a one-time or pick pay-per-delivery method.
4. Shopping
Once the store has been selected, it is time to browse the items available in that store. The app has categorized all open items that enhance the user experience. The app also displays the available products at discounted rates or are on sale. Once the items and quantity have been selected, they can be added to the cart. Regular users can also view past orders, and the app recommends some specific items users might want to add. Before placing the order, the users can use a checklist of products in the cart, as well as a quantity and price breakdown. After that, they can proceed with checkout.
5. Choose grocery delivery time.
Once the checkout is processed, the app asks for the preferred delivery time. The time slot can be chosen at your convenience, and a phone number and address can be added for the grocery delivery. Users can choose the payment method as per their convenience, like debit/credit card. However, the app doesn’t offer a pay-on-delivery option. Also, it has now started delivering the groceries on the same day as the booking. However, it depends on the order placing time and the store’s distance from the delivery location. The time-slot option shown in the app is for the next three days, so you can choose any day from the next three.
6. Substitutes
The app comes with a substitute feature that can be used when a few items selected by the users are not available in the store. Hence, the substitute feature offers the users three options, they are:
- Do not substitute
- Choose for me
- Contact me so I can choose
The users can select any of these options, like if they have chosen cereals of a particular brand that are out of stock at that moment, so the users can pick the cereals of another brand or allow the app to do that for them. If the users only want a chosen brand, they have the option ‘Do Not Substitute.’
7. Order Delivery
After the order has been placed, the Shipt system assigns a shopper to pick up the ordered items from the store and collect them. Then, the notification is sent to the user when the shopper has collected the items. Then, the users are allowed to make the changes to the orders until the delivery person picks them up. After the order has been selected for delivery, no updates are accepted. The items are delivered to the doorstep in the preferred time slot.
Why Invest In Developing A Grocery Delivery Mobile App Like Shipt – A Market Overview
Is it the right time to invest in mobile app development like Shipt? You put the right question here. To get the answer, you should delve deeper and learn about the current grocery delivery market, its prospects, and more.
- In the grocery delivery market, the number of users is anticipated to rise and reach 2,215 m users by 2029.
- According to Technavio, the online grocery delivery services market is expected to elevate at a CAGR of about 25.2% from 2023 and 2028 and be valued at $1,120.4 billion.
- The retail delivery segment is the largest one in this market, with a predicted market volume of approximately $586.80 billion this year.
- Grand View Research says the global online grocery market size will expand at a CAGR of 26.8% from 2023 to 2030, up from $50.28 billion as recorded in 2022.
The list of facts and figures is endless considering the grocery delivery app market, but the future is promising. Convenience, time efficiency, and cost-savings are the factors igniting the growth of the industry.
Why Build An App Like Shipt – Benefits To Know
Building a mobile app like Shipt can provide various benefits to each stakeholder.
Let’s talk about each with an explanation:
For Customers
Benefit | Description |
---|---|
Convenience | Customers can order groceries and other items while lounging on their couch at home. |
Customizable Delivery | They can choose any delivery window that suits their schedule. |
Time-Saving | Customers don’t have to go to the store to shop, and thus, they can save valuable time. |
Real-time Tracking | They can monitor their order’s progress and expected delivery time. |
Product Variety | Customers can easily access a wide range of products from diverse stores. |
Developing an app like Shipt can offer customers a time-saving, convenient, and personalized grocery shopping experience.
For Shoppers
Benefit | Description |
---|---|
Flexible Work Hours | Shoppers can choose their hours and work at their own pace. |
Additional Income | They can earn extra income simply by delivering groceries. |
Community Engagement | Shoppers get a chance to interact with customers and become part of your community. |
Easy-to-Use App | A user-friendly mobile lets shoppers easily manage orders, track their earnings, and communicate with customers. |
Developing a mobile app like Shipt can help shoppers with a rewarding and flexible opportunity to earn extra income while cherishing being an independent worker.
For Retailers
Benefit | Description |
---|---|
Increased Sales | Retailers can expand their search, reach a broader customer base and increase sales. |
Enhanced Customer Experience | They can offer a convenient and smooth shopping experience. |
Reduced Operational Costs | Apps like Shipt can lower labor costs and inventory management expenses. |
Data-Driven Insights | They can gain valuable insights into customer preferences and behavior to make informed decisions. |
Retailers can expand their customer base by partnering with a grocery delivery mobile app or building one from scratch. Thus, they increase customer satisfaction and optimize their routine operations.
Whether you are a customer, retailer, or shopper, the Shipt delivery mobile application development can be beneficial for you in the long run.
Hire a mobile app development company with years of experience and required expertise to build an app like Shipt.
Business Model Of The Shipt
Operating on a marketplace model, Shipt connects customers with personal shoppers. This model follows a scalable and flexible approach to delivering groceries.
Crucial Components of the Shipt Business Model
1. Platform
A user-friendly and easy-to-use app is built for both shoppers and customers. Besides, robust technology is used to ease order processing, payment, and product delivery tracking.
2. Customer Acquisition
Different options are chosen for acquiring customers, like partnerships, referral programs, and marketing and advertising.
3. Shopper Network
Shipt hires and onboards independent shoppers and offers them training on order pickup, delivery, and customer services. Ahead, their performance is tracked, and they are incentivized for good behavior.
4. Revenue Generation
They allow customers to opt for monthly or annual subscriptions that include free delivery on orders reaching a certain amount.
Non-members need to pay a flat fee for every delivery.
Shipt charges a commission on every order, usually a percentage of the total order value.
By managing these components effectively, Shipt has made itself acknowledged as a leading grocery delivery mobile app in the market.
How Does Shipt Make Money – Revenue Generation Model
Shipt has a multi-faceted revenue model that ensures its growth and sustainability. It generates revenue by leveraging a combination of commissions, partnerships, and fees while offering convenience to its customers.
Revenue Stream | Description |
---|---|
Membership Fees | Customers are offered distinct plans to subscribe to a monthly or annual membership for a fee, which usually includes free delivery on orders over a decided amount. |
Commission Fees | Shipt charges a commission on every order. It’s usually a percentage of the total order value. This fee covers operational costs and contributes to the company’s profit. |
Service Fees | Non-members pay a flat amount for each delivery. |
Sales Commission | Shipt may propose incentives or commissions to shoppers to fulfill certain performance metrics or advertise specific products. |
Price Markup | Shipt often marks up the prices of products compared to the retail price at the store. This extra revenue stream covers operational costs and generates profit. |
Shipt effectively uses these revenue streams to stay competitive and ahead of the curve.
Must-Have Features For Shipt-Like Grocery Delivery Mobile App Development
While you build an app like Shipt, you need to include essential features to make it worthwhile for users.
A grocery delivery mobile app targets different users. We will showcase features for each user separately.
For Customers
Feature | Description |
---|---|
User Profile | Create and manage user profiles, including payment details, address, and order history. |
Real-time Order Tracking | Track the orders’ status, from placement to delivery. |
Store Selection | Browse nearby stores, scan their product catalogs, and compare prices. |
Easy Order Cancellation and Returns | Allow easy canceling or returning orders. |
Multiple Payment Options | Offer various payment methods, including digital wallets, credit/debit cards, and cash on delivery. |
Push Notifications | Receive notifications for promotions, order updates, and special offers. |
Customer Support | Provide reliable customer support through email, chat, or phone. |
Loyalty Programs | Offer discounts and rewards to loyal customers. |
Ratings and Reviews | Rate and review stores and delivery partners. |
For Delivery Partners
Feature | Description |
---|---|
Order Acceptance and Rejection | Accept or reject orders depending on varied factors like distance and time. |
Easy Order Management | Effectively manage multiple orders and optimize delivery routes. |
Real-time Navigation | Receive turn-by-turn navigation to the order pickup and delivery locations. |
Customer Communication | Seamlessly communicate with customers to confirm deliveries and address any problems. |
Payment Tracking | Track earnings and payment history. |
Incentive Programs | Earn performance-based incentives and bonuses. |
Performance Metrics | View performance metrics, like delivery time and customer ratings. |
For Store Partners
Feature | Description |
---|---|
Inventory Management | Smoothly manage product inventory and update stock levels in real-time. |
Real-time Order Tracking | Monitor orders’ status and delivery progress. |
Order Fulfillment | Efficiently process and meet orders. |
Payment Processing | Flawlessly integrate with payment gateways to process payments. |
Analytics and Insights | Gain insights into customer preferences, sales trends, and peak delivery times. |
Customer Feedback | Receive customer feedback and ratings to enhance services. |
By including these essential features for every user, you can create a robust on-demand grocery app that can benefit every stakeholder.
How To Develop A Grocery App Like Shipt?
Making a grocery delivery app like Shipt requires certain things to cover; let’s have a look at each of the steps.
1. Make an Approach
Identify all the unique requirements of the app before going into development. This way, you will get an idea of why and how the app development would be beneficial. Businesses should determine the key features they want to embrace in their app to make it unique from their competitors in the market. Consider various ideas for your app creation for smooth plan execution.
2. Market Research
It is one of the leading development steps, and you should carry it carefully. A business must know where it is investing and where it will get its foot in. They must understand the competitors, their strategies, target audience, emerging trends, and market behavior. This will guide the team for the development and seamless launch of the app.
3. Choose the Development Partner
Once you decide on the app’s development, it is time to get a good development company that can help you with the perfect creation of the app as per your needs. This process can take some time, so as soon as you decide to go for this app, start looking for an excellent mobile app development company. Sort the top companies that fulfill your requirements and choose the one that perfectly suits all the criteria.
4. Select the Business Model
Select the model for the development of your grocery app. If you know little about it, you can also consult the team you hired. They will suggest the best options that best suit your app idea. The most common models can be the multi-vendor marketplace, shopping, hyper-local, online-selling, or inventory models.
5. App Development
The process contains all the steps, from designing a wireframe for the rough idea to developing the app’s back-end to the UI/UX design to include all the features. Besides, the development process ensures that the app meets the client’s needs by putting them in the loop at every step.
6. Test the App
After completing the development process, send the app to the quality assurance team. The team will check the app for bugs or errors to ensure a seamless user experience. After ensuring everything is working fine, the app is ready to launch.
7. Launch App
You must look for an appropriate platform to launch the app in the market. The platform can be as per the operating system for iOS, go for the App Store, and for Android, go for the Google Play store. The work does not end here. You should monitor your app per the users’ reviews and update it regularly for a better user experience.
What Is The Cost Of Developing An App Like Shipt?
The cost to build an app like Shipt depends on varied factors, such as the app complexity, features and functionalities (you want to include), development platform, your development team’s location, and more.
An estimated cost to develop an app like Shipt ranges between $20,000 to $200,000. The figure fluctuates depending on the factors (we discussed).
You should connect with a reliable company for mobile app development for grocery delivery.
Tools And Technology Stack Required To Develop a Grocery Delivery Mobile App Like Shipt
You should leverage the latest tools and techniques to build an app like Shipt and make it perform as expected.
We have curated a table that you can consider while choosing a tech stack for grocery delivery app development.
Layer | Technologies |
---|---|
Frontend | React Native, Flutter, SwiftUI |
Backend | Node.js, Python (Django, Flask), Ruby on Rails |
Database | MongoDB, PostgreSQL, MySQL |
Cloud Platform | AWS, Google Cloud Platform, Microsoft Azure |
API | REST API, GraphQL API |
Payment Gateway | Stripe, PayPal, Razorpay |
Push Notifications | Firebase Cloud Messaging, Apple Push Notification service |
Analytics | Google Analytics, Firebase Analytics |
Version Control | Git |
CI/CD | Jenkins, CircleCI, GitLab CI/CD |
While choosing a tech stack for mobile app development like Shipt, consider your project needs, budget, and timeframe.
List Of Stores Working With Shipt
What stores does Shipt use? What stores use Shipt?
Check the table below to find answers to these questions.
Publix | Costco |
Petco | Winn Dixie |
Office Depot | Target |
CVS | LIDL |
Spirits | Meijer |
ABC Fine Wine | Safeway |
Piggly Wiggly | HEB |
Lowes Foods |
Team Required To Develop An App Like Shipt
An on-demand grocery delivery app development like Shipt demands hiring a reputed mobile app development company with a good track record. These app development companies have an experienced team working for them that consists of:
- Project Manager
- Android/iOS Developers
- UX/UI Designers
- Back-end Developers
- Graphic Designers
- QA professional
- Delivery Manager
Next, we discussed other essential aspects of developing an online grocery delivery app.
Future Trends Of Grocery Delivery App Development Like Shipt
With the technical revolution, you should make your app like Shipt competitive by leveraging the latest technologies and trends.
Let’s check out what trends can help you make your app stand out.
Future Trend | Impact |
AI and Machine Learning | Personalized recommendations, predictive analytics, optimized delivery routes. |
Autonomous Vehicles | Diminished delivery costs and enhanced efficiency. |
Drone Delivery | Quicker and more efficient deliveries, particularly in remote areas. |
Contactless Delivery | Boosted safety and convenience for customers. |
Virtual and Augmented Reality | Immersive shopping experiences, virtual store tours, and virtual try-ons. |
Hyperlocal Delivery | Greater convenience and faster delivery times for urban customers. |
Subscription Services | Recurring revenue and enhanced customer loyalty. |
Why Choose Emizentech For Grocery Delivery App Development Like Shipt
Emizentech is a trusted mobile app development company with a proven track record in providing scalable and innovative mobile app solutions.
Considering developing a grocery delivery app like Shipt, we provide a unique combination of experience, proficiency, and commitment.
Key Highlights to Consider While Choosing EmizenTech for Mobile App Development Like Shipt
- Clutch Awarded
- Competitive Pricing
- On-Time Delivery
- Within-Budget Mobile App Development Services
- Custom Development
- Agile Development Approach
- Team of Expert Developers
- On-going Support and Maintenance, etc.
By choosing EmizenTech as your partner for mobile app development services, you will witness unique outcomes and attain your business objectives.
Conclusion
While wrapping up, we hope you find this blog post helpful. You have learned the steps to build an app like Shipt, the right tech stack to choose from, and more factors that can help you create a grocery delivery mobile app.
Remember to emerge with a user-friendly app that can help users perform their operations efficiently and leave your customers satisfied.
With careful mobile app development planning and perfect expectations, you create a mobile app like Shipt that can benefit customers and businesses.
Contact a mobile app development agency for assistance from ideation to deployment and after-development services.
Frequently Asked Questions (FAQs)
Development time typically ranges from 4 to 6 months, depending on the app’s complexity and features. A simpler version can be built faster, while a robust, feature-rich app may require longer. Efficient project management is key to keeping the timeline on track.
Use encryption, secure payment gateways, and regular security audits to protect user data. Implement two-factor authentication and SSL certification to secure transactions. A dedicated security protocol enhances user trust and app reliability.
Challenges include managing logistics, ensuring data security, and integrating various payment options. Building a reliable network of shoppers and stores is also critical. Planning for scalability and addressing customer support needs is essential for success.
EmizenTech specializes in building high-quality, custom, on-demand apps tailored to client needs. With expertise in UI/UX design, robust functionality, and seamless performance, our team delivers reliable solutions. Contact us to get started on a powerful, user-friendly app.