Amongst the digitalization taking place in each and every industry, there have been many online grocery delivery apps coming up in the market. People prefer getting their groceries delivered at their homes rather than going to collect them personally from the supermarket. This has provided tremendous opportunities for the growth of online grocery delivery apps.

There are many online grocery delivery apps coming up each day like Shipit, Instacart, Bigbasket, Grofers, Amazon Prime, Peapod, etc which definitely eliminate your weekly trip to the grocery store.

Grocery apps are actually divided into two categories. Hiring apps like Instacart or Shipit actually mean that you are hiring someone to go and fetch the groceries for you. However, online grocery delivery apps like Peapod are like the virtual grocery store for one to shop. They have their own inventories and you get the experience of visiting the store for getting your groceries right from the comfort of your home.

Well, whichever category of online grocery delivery people prefer, the digitalization and apps have made it possible for people to spend less time at the store and more time on other productive and priority things.

Let’s discuss in detail about an online grocery delivery app called HappyFresh which has recently raised $20 million for its online grocery service in Southeast Asia. We will check out in details what has made the HappFresh app stand out and what is the secret of its success.

HappyFresh App:

HappyFresh is the leading company which focuses on last-mile logistics and on-demand delivery company. It was founded in the year 2014. The HappyFresh app enables its consumers to shop in their favorite grocery retailers right through the mobile screens. The company is led by Markus Bihler. Its headquarters are in Jakarta, Indonesia. HappyFresh works at various locations in Southeast Asia like Malaysia, Thailand, Taiwan, Philippines and more.

Here is a list of top ranking apps in Indonesia in the Appstore under the Food and drink category where we can find the HappyFresh app ranks 11th.

3 reasons for the success of HappyFresh app: You should keep in mind to develop grocery delivery apps

Shopping is an integral part of our lives. Going out every now and then for the daily essential needs like spices, shampoo, handwash, bathing soaps, kitchen napkins, etc is troublesome in this fast-paced world. HappyFresh is disrupting the grocery space with its amazing strategy and planning. Here is how:

1:  The regional teams of HappyFresh focused on the expansion of the company.

The HappyFresh team believed in the division of labor and focused mainly on the expansion of the market. Their strategy for the regional team to focus on the expansion. The other problems like user support and solving the technical issues for the users were left for the research and development team sitting in the headquarters of the startup.

This strategy played a great role for the regional teams as they were able to focus more on marketing and educating the customers. Due to this strategy, the teams remained small but worked efficiently. It also saved the labor costs for the company but in turn, increased the business for the company.

2: Following the asset-light model to facilitate the growth

An asset-light business model is nothing but a business model for the organization where the company keeps a few assets but has major operations. The efficiency in business comes by focusing on the equity investment on the organization’s expertise to achieve the best result.

This strategy was followed by HappyFresh startup to become one of the well-known asset light company. The company cuts the budget on assets so that the regional team can work on providing various schemes and discounts to lure the customers in order to expand the business and organize more marketing campaigns to bring in more and more the first-time users.

Apart from that, the company has also started to make itself stand out by introducing a HappyFresh academy that teaches the buyers the art of selecting fresh food and fresh fruits. HappyFresh has partnered with premium supermarkets which are popular among their customers.

3: One hour delivery making the grocery shopping easy even when there is no time to wait.

There are times when you invite some guest and then realize that your pantry is out of some of the items that you need while cooking. Or just the thought of carrying the heavy bags of rice and flours from the supermarket to your home can make you start sweating.

HappyFresh has introduced a one-hour online grocery delivery service to solve these problems for their customers. This has made the supermarkets situated far away reachable to the customers and they are also offered an attractive discount if they shop more often. All in all, the deals with HappyFresh are customer-friendly and have played an important role in its growth.

The other important strategies followed by HappyFresh were targeting the niche market with high-spending power, thus avoiding the reasons for failure. HappyFresh charges a delivery fee and plays the middleman between the customer and the supermarkets but they make the amount to be paid much lesser than physically going to the supermarket. Another important thing that has helped the growth is a collaboration with the competitors. HappyFresh could reclaim the new market even with the existence of numerous grocery players who enjoyed the first-mover’s advantage by joining hands with them and growing together. So, HappyFresh was benefited by the competitors market access and could reach a lot more customers that it might have not achieved as a newbie.

If we sum up the above strategies, we can derive that the strategies of HappyFresh are worth considering if you are looking forward to entering the niche of grocery delivery apps.

Now, thinking about the cost and features of online grocery delivery app, precisely, that depends on the category of your grocery app and the features you wish to include. However, you can connect with us for a free demo and further discussion regarding the online grocery app development.

We have experience in delivering more than 10000+ such on-demand apps and we can help you to make an extraordinary app which can attract and increase the number of your customers and make your online grocery delivery app successful. Get in touch with us for the innovative approach for grocery selling through mobile app development.