We cannot think of our lives without smartphones even for a single second as they have become an indispensable part of our lives. We are used to accomplishing many things using them. For example, booking tickets for airlines, buses, trains, movies, and local events, ordering food and taxi, etc. There are many other apps available at our fingertips like an on-demand doctor, banking, etc. In order to save time, we have also opted for grocery delivery apps. These apps allow us to just place an order and do any other important work till the time the grocery is delivered at our doorstep.

Previously, most people preferred to get their groceries from grocery stores.

But now with so many grocery delivery apps available in the market people are opting to order their groceries online and through mobile apps every day.

There are many grocery delivery apps available in the market like Instacart, Grofers, ShipIt, and FreshDirect, Big Basket, etc. It is expected that soon the on-demand grocery delivery apps will be overtaking the physical grocery stores.

Why choosing Grofers like app or Grofers clone app smart step for you?

As an entrepreneur dealing in grocery or a startup, you can take your store right at the fingertips of your customers by delivering a grocery delivery app.

According to a report, the online grocery sales of the US was only US$6 billion for the year 2012. But in the year 2018, it has nearly tripled and reached US$17.5 billion. It is expected to grow to US$30 billion by the end of 2021.

This digital revolution cannot be missed by the startups and entrepreneurs as more than 50% of the grocery retailers have started to offer the groceries through their mobile apps to stay in the competition and earn more and more profits. Apps like Grofers, Instacart, AmazonFresh, Wallmart, and FreshDirect are leading apps in the competition of online grocery shopping at present.

If you are thinking about developing an on-demand grocery app for your grocery business, the first thing that comes to your mind is the cost of developing the on-demand grocery app.

While talking about the cost of developing your on-demand grocery app, many factors need to be taken into consideration. Some of them are as follows:

• The Business Model for your grocery business
• The Platform which you require
• Mobile app and the features to be included
• The best technology partner to help you out

Let us discuss one such successful grocery delivery app- Grofers and throw some light on its business model and strategies to win the competition.
 

The beginning of Grofers:

 
Albinder Dhindsa and Saurabh Kumar came together while working for Cambridge Systematics. They became friends and kept in touch with each other even after leaving the job. They discovered that there was a huge gap in the logistics or delivery industry. With that, they sensed an enormous untapped opportunity. They instantly got together and started working on the idea and eventually laid the foundation for their startup.

They launched an app named Onenumber in the year 2013 which provided the on-demand pick-up and drop service from shops like pharmacy, grocery, and restaurants for their customers. They had designed the app to be a one-stop solution for the customer’s local delivery needs. But it was not too late for them to realize that they were receiving more than 90% of their orders for groceries and pharmacy products. They soon changed their app model only to groceries and pharmacy products and re-named the company as Grofers.

Funding of Grofers

Grofers got its first seed funding of 500 thousand dollars in the year 2014. In the Series, A funding round from Tiger Global Management and Sequoia Capital Grofers raised 10 million dollars in the year 2015. The company succeeded to raise 25 million dollars in the same year and soon in December 2015, they accomplished raising their biggest funding of 120 million dollars.

Recently, Grofers has managed to raise $10 million as part of its ongoing Series F round from Abu Dhabi-based company Capital Investment LLC. This entity is said to be an investment vehicle of the UAE-based Abu Dhabi Investment Group.
 

Grofers On-Demand grocery delivery app Business Model:

 
Grofers is a HyperLocal On-demand grocery delivery app. The basic service of Grofers is to deliver r grocery, fruits, vegetables and much more daily use household items. They try to make their deliveries in a few hours or as an when scheduled. They do not own and grocery store or have no warehouses.

Grofers associates with grocery stores in the city. The delivery boys pick the items from those partner stores to fulfill the customer’s order. A customer can place their order through the mobile application using any Android or iPhone. For the people who prefer using desktops, a Grofers website is also available.

Acquisitions of Grofers:

Grofers acquired a Gurgaon based startup named MyGreenBox in the year 2015. Grofers acquired a Bangalore-based B2B logistics delivery company namedTownRush in the same year to enhance their productivity.

On-Demand grocery delivery Business Competition:

The online grocery market has grown big time in the world since it was born. Each day, new players are adding up to the market. Many of the big offline supermarkets are going online. Everyone has to keep up their game to engage the existing customers and to attract new ones. The biggest competitor of Grofers in India is BigBasket.

Also read : Cost of On-demand grocery delivery app development Like Grofers, Instacart or Walmart or Amazon Fresh?
Grofers is operating in 17 cities which is one less than BigBasket. BigBasket was launched in 2011, two years before Grofers. But it is not to be ignored that Grofers has been investor’s favorite and has raised around 150 million dollars in the last 4 years.

So, after reading about Grofers’ success if you are thinking about developing a mobile app for your grocery business, Coruscate Solutions can be your best choice for technology partners as we are well-versed in the area of grocery app development and other on-demand services. Our research team has always kept updated information in the arena of on-demand grocery app development so that we can provide our clients with the best possible suggestions and unique solutions for their technology problems. Connect with us to get a free consultation regarding the grocery business to give your business a new direction of success.