In today’s time, everything is getting on the tips of your finger. Whether you have to book a cab, order food or do shopping, just a few taps on the mobile phone and it’s done. Just like shopping for other items, people also now prefer to order their regular grocery items online. In fact, you would be surprised to know that nearly 25% of the consumers in the US order their groceries online. The demand is continuously increasing and will spur the market to higher growth. By 2022, it is expected that the online grocery market will reach the valuation of whopping $133.8 billion. This shift of shopping trends has increased the demand for grocery delivery mobile apps and paves a great opportunity for startups, traditional grocery stores, and tech companies to build their own grocery delivery mobile app.
Online grocery shopping sales in the United States from 2018 to 2023
While online spend on groceries remains relatively low, the number of people who have actually tried a digital grocery service is far higher. If we see the figures location wise, then South Korea is leading in the online grocery shopping industry, with nearly 20% of their shoppers prefer to buy their groceries from grocery apps regularly.
As people are getting more technically advanced, using apps for shopping is becoming a norm now. Online shoppers are increasing at a rapid rate, and in comparison to the past, we have observed a tremendous increase in the online grocery shoppers as well. The people are commending the idea of ordering their household items at any time and received on their preferred time. And all this happens without the compulsion of visiting the physical store, waiting in the queue while billing. Probably, this could be the major reason for this drastic increase in online shoppers.
How does a grocery delivery mobile app work?
The functioning of a grocery delivery mobile app is quite simple. It offers virtually all sorts of grocery items and provides the facility of applying certain filters in order to make searching easier. After searching their items, the users can add to their cart and then do the final checkout. In many of the apps, the users can choose the time-slot of their order delivery. Here are the detailed steps:
- User signed up by entering necessary details
- After signing up, log in with Email id or phone number and Password
- Search the product that the user wants to purchase
- Select the product and Add to Cart
- Add Address Details where need to deliver
- Order confirmation by the user by making online payment
- Admin receives the order request
- The request gets forwarded to the grocery store manager
- Store Manager responds to the request by either accepting or declining the request
- Admin reverts back to the customer by sending notification
- Store Manager Generates the Order
- Update Admin that courier service has collected the order
- Order successfully delivers to the customer
- Courier Service updates the Admin as well as Customer.
Types of Grocery Apps
The online grocery delivery mobile app market is highly competitive. As there are a lot of players in this market, it is essential that you decide from the beginning which type of app you should build along with its business. Your entire resources, along with your operations and capital investment, depends on the type of app you are going to build. If you are looking to develop a Grocery Delivery Mobile App for your grocery business, then you can go through these options. In a summarized manner, the apps are of two kinds:
If you are planning to launch a grocery delivery mobile app on the aggregator model, then you need to collaborate with local grocery stores. This model is generally preferred by those who are having their own grocery stores, having its own chain of stores, or can tie up with the grocery stores easily. In this model, there would be a list of the grocery stores for the user, and the user can decide to purchase from any of the listed stores.
The entire responsibilities, including order fulfillment to delivery, are of the store, and you are just a facilitator serving as a mediator between the shopper and the store owner.
The dedicated apps have all the features of the aggregator model, but in the dedicated model, you have to manage the complete order facilitate. In easy words, different grocery stores would sign up on this platform, and start selling the items. You would have your own fleet of delivery executives. Your main task would be to facilitate order placement and deliver goods to the customers. Under this model, more responsibility is on the online grocery platform as it needs to have a dedicated fleet of delivery executives.
Top Features of a Grocery Delivery Mobile App
Every app requires a basic set of features & functionalities for its different entities. In a grocery delivery mobile app, there are three main entities: Customers, Store Owner, Admin. The features for each of them are:-
- Registration: Customers should be able to easily register on the app. A user can simply login by filling their basic details, including name, email, contact no., address.
- Browse Products: Customers are enabled to browse their required products from a wide range of food products and grocery items.
- Advanced Search: Users should be able to apply certain filters to make the search quick and easy.
- Payment Mode: Customers must be able to pay via the common & user-friendly payment methods, including Paytm, UPI, Paypal, Google Pay.
- Schedule Delivery: The app should allow customers to select their preferred delivery time slot.
- Order tracking: The customer should receive alerts via SMS & mail, and the customers can track real-time order status.
- Settings: Users should have full authority to modify the settings i.e. they can alter information such as contact number, email address, etc.
- Reviews & Ratings: The customers can leave their feedback for the products they have received and store. It will help in improving the overall experience.
For Store Owner
- Store Locator: The store owner can relocate his store on the maps, through map, customers can search them as a closed store and make their orders.
- Store Pickup: If customers prefer to pick up their orders from the store then they can. It will improve the offline Grocery Business of the customers.
- Managing profile: The store owner has full authority to manage his store profile. The owner can modify or update their details including Name, Email Address, Phone Number etc at any time and from anywhere.
- Live Tracking Path: The store owner should be able to track the real-time status of courier service by using GPS tracking or Google Maps on the entire route.
- Store Management: Admin is able to manage all the aspects of the store from a single place. Even the multiple stores can be managed by the admin.
- Co-ordination with Store owners: Admin can coordinate with managers instantly and maintain a smooth workflow.
- Product list management: Admin can manage and even control the list of products and adjust prices as per the market standards and store owner demands.
- Order Tracking: Admin has an eye on every processing order, and for the systematic process, it keeps an eye on the work process.
- Customer Management: Admin should be able to manage customers and attract them towards their needs, by sending regular notifications and notifying them from time to time.
- Feedbacks: Admin collects all reviews & ratings, to act on it for improving the customer’s experience.
- Notification: Admin sends the notification to provide customers and store managers status about the order.
- Payment Management: The online grocery solution admin panel manages the payment model also.
Market Leaders of Online Grocery Delivery
Online grocery delivery is an ideal option for those people who don’t have time to go out and stand in long queues for buying groceries. Also, in this COVID-19 pandemic, grocery delivery is highly suitable who don’t want to leave their houses. Before developing this app, you should have some basic information about the market leaders in this segment and how they work. Henceforth, we have listed out a few of the giants of this segment.
Walmart Grocery Delivery:
Walmart grocery is one of the biggest grocery delivery services in the world. It provides services in more than 1,600 cities across the world. It was first launched in a few cities in 2015, then soon, it expanded its operations.
How it Works
You can either download the Walmart Grocery app or visit the website. There is a wide range of items that you can find on the store. Walmart also offers the pickup option in addition to the delivery. After selecting the items, choose the delivery slot or pickup.
Pricing and Delivery
The delivery fees mostly lies between $8 to $10. However, there is a subscription functionality “Grocery Unlimited that provides unlimited deliveries for just $13 per month or $100 per year. Mostly, the delivery slots are available for 24 hours.
Instacart has seen an immersive growth in its market size. It has grown 179% since August 2017, and 75% since January of last year. The grocery delivery (and pickup) service now covers 80% of U.S. households, up from 35% in 2017. Shipt, Amazon, and FreshDirect all lag Instacart when it comes to grocery delivery market share.
How it Works
In Instacart, there is a team of local shoppers to acquire grocery items from different stores in the area. Instacart also has a feature that allows you to shop by recipe. There is also a feature of scheduling delivery in advance or order on-demand.
Pricing and Delivery
In Instacart, the delivery fees depend on the size of your order and the chosen delivery time. It could be on surge during busy shopping times. There is also a membership functionality that grants free delivery services for orders value more than $35.
Amazon Prime Now:
Amazon is amongst the biggest competitors of Walmart. Both the companies are world leaders and gave a huge competition to each other. Amazon’s US food and beverage sales amounted to $6.13 billion in 2019 or 23.7% of total US food and beverage e-commerce sales.
How it works
Amazon Prime Now is amongst the greatest benefits of the Amazon Prime membership. The delivery service heavily on items stored at Amazon’s many warehouses. You can also get delivered much more than food in this. Everything from batteries and cleaning supplies can be delivered to your door in less than two hours with Prime Now.
Pricing and Delivery
Amazon Prime Now comes with the Amazon Prime membership costing $100 a year. Delivery within 2-hours is free, and you can get an emergent one-hour service at mostly $10. The minimum order value is $35, order less than this charge $5 delivery fee.
Peapod is a Chicago based online grocery delivery mobile app, and operates in several cities of U.S. Peapod online grocery has operations in 24 U.S. urban markets, and as of 2015 was the largest online grocery delivery store in the United States.
How it Works
Peapod is much more like a standard grocery store than some of the other options on our list. The online store is organized by “aisles,” and since the bulk of Peapod’s inventory is stored in the company’s own warehouses, customers can forgo some of the delivery costs by picking up their own orders.
Pricing and Delivery
Delivery charge depends on the size of the order. The charge is of $10 for orders of $30 (minimum amount), delivery fees reduce to $8 for orders more than $75, and reduces again to $7 for orders more than $100.
Whatever the industry is, it is always essential to identify the business model that you would be approaching. When it comes to the grocery delivery business segment, the business models are quite simple.
In this model, you can charge fees on every order the grocery store gets on your portal. You can also make a profit through the delivery services.
You can also add the promotional feature in which the grocery stores can promote on your app by paying some charges decided as per the market standards.
If you are a highly ambitious entrepreneur, then you can start your own business and procure goods directly from source and list the same on your online portal. In this business model, you can embed a revenue model by charging a delivery fee directly from the customers.
Advanced Features of a Grocery Delivery Mobile App
After implementing the key features, it is time to implement those features which can make your app stand alone. Here are some of the advanced features that will ensure that your app stays ahead in the competition.
Push-notifications are alert-style messages that appear on the screen when you are not using the app. By these messages, you can deliver relevant and personalized content to your customers at most appropriate moments.
Real-time tracking means sending frequent live tracking updates to a GPS device, i.e. a mobile. By this, the drivers deliver the products within the deadlines, in the case of delay the customers don’t have to wait with uncertainty.
GPS tracking system in a mobile provides a highly personalized experience to the user. It checks the user’s geographic location and provides results such as items to order, currency, famous grocery stores of that place, nearby stores, etc.
Behavior tracking means tracking user response instances in order to deliver a better user experience. The instances are such as what items the user last ordered, most searched items, shopping timing, shopping pattern of the user. For e.g., if you are in Italy, then the app will recommend opting for Italian food items such as Pasta, Lasagne, etc.
Real-time analytics is the data analysis as soon as the data gets available. It helps you to monitor the activity of users, detecting the frauds, saving costs, and increasing the conversion rate and profits.
Loyalty programs help businesses to stay consistently engaged with the customers, which helps boost brand loyalty. There are several programs like Redeemable Coins, Vouchers, Memberships, physical gifts or gift cards, non-tangible rewards, etc.
In-App Calling (Consumer and Store Owner + Delivery Boy)
There should be a feature of calling the delivery boy by both consumer and store owner within the app, just like in Uber, OLA, and others.
In-App Chating (Consumer and Store Owner + Delivery Boy)
Similar to in-app calling, in which there was a call feature, there should be a chat feature by which the delivery boy can communicate with both customer and store owner.
Phone number masking is a technology used to secure the customer’s privacy by connecting them with the delivery boy without exposing their real phone numbers.
In-app navigation, especially through Google Maps, helps the user to track his/her location quite easily for the delivery address and also helps the delivery boy to locate the destination.
Reviews & Ratings
Reviews & ratings help the business to know the customers’ feedback and also helps the other customers to know the services of a store by its ratings.
If a customer wants to do the same order numerous times, then by re-ordering functionality, he/she can do the same order without the hassle of adding items again & again.
CRM integration can benefit your business by helping you centralize, optimize, and streamline your communication with customers and get a better knowledge of customers, increase segmentation and customer retention, and many other benefits.
As your business grows larger, it becomes hard to manage all aspects of it properly. ERP integration helps you to streamline all your business processes and to monitor them.
Business Intelligence helps the business owners to make better-informed decisions backed up with accurate data. It will ultimately help them spot new business opportunities, cut costs, or identify inefficient processes that need reengineering.
Custom Dashboards provide a central location to every entity of your business to access, interact, and analyze up-to-date information so they can make smarter, data-driven decisions.
When the user is unable to identify a real product but wants to purchase from your app, then the AI-based visual search helps in this. Visual search uses real-world images (screenshots, Internet images, or photographs) as the stimuli for online searches and gives desired results.
Voice Assistance or voice search gives the user flexibility to do shopping on just voice commands while doing other tasks simultaneously.
Recommending the similar items that the user was searching or browsing on your app built a greater user experience and also increase the sales on your site.
Consider Web application & PWA
Although the world is moving towards mobile, many people still prefer to do shopping on a widescreen i.e., on desktop, therefore it is essential to develop a web application of your business and also a PWA for those users who doesn’t prefer to download apps for a one-time shopping.
Required Development Team
For developing an app, you will require a highly experienced team who can turn your idea into reality. The team should have expertise in implementing complex custom features and captivating UI & UX for better user engagement. The essential team members should be:
Project Manager analyzes the requirement, pass the requirement to developers in technical language, and manages the project.
Mobile App Developers
Mobile app developers would be responsible for the core development of your app. They have expertise in the underlying technologies and languages of mobile technologies.
These developers are responsible for the attracting user interface and design of the app.
These developers are accountable for the plugins development, database management, APIs, and other backend features.
A Quality analysis expert checks the complete app, make sure all the required features & functionalities are working, along with the design of the app.
How much does it cost to develop on-demand mobile app?
Obviously, the cost of developing mobile applications also matters a lot. However, there are numerous factors on which this cost depends. These are:
Reputation of development partner
A highly prestigious, experienced, and reputed mobile app development company like TCS, Infosys, Wipro, will definitely charge more in comparison to those players who are in the developing phase of the company.
Geography of the development team
The geographical location of the development company also matters for the costs. For instance, the development costs in South-East Asia can lies within 20-30$/ hr, while in the north America region can go up to hundreds of dollars per hour.
Timeline & Team Size
If you demand an app within a very short deadline, then obviously, the company will increase its charges. Also, a large team of developers will cost more.
MVP OR Full Fledge product
A minimum viable product is an app with just essential features, while a full-fledged product is an app with essential as well as advanced features. The cost of an MVP application in South-east Asia can lies within 15-25 thousand dollars, while a fully-fledged app can cost you 25-35 thousand dollars. If you are a beginner in this segment, then it would be recommended to begin with an MVP and gradually scale up the app features.