What is on-demand grocery delivery app development cost? Complete guide and Business models
Posted on June 25, 2019 By Ankit Virani
Want to develop app for your grocery delivery business? Here is the on demand grocery app development cost and everything your need to know. Getting your items of daily need delivered at your doorstep is not just welcomed by the numerous customers who order items through on-demand grocery delivery but also by a lot of startups and entrepreneurs who wish to be an expert in the booming market.
And all the aspirational entrepreneurs are interested to know about the business model of the Grocery delivery app which we will be analyzing today.
Online grocery shopping is becoming popular with consumers swiftly. According to a Nielson study, people residing in developed countries like the US, the UK, Japan, France, etc., are shopping online. And more than one-fourth of those shoppers are already shopping groceries on the internet and 55% are prepared to do it in the near future.
To provide for this expanding client base, online grocers are also growing at the rate of 3 times year-after-year. The entire sector is advancing at an extraordinary annual rate of 13%.
The statistics unmistakably seem encouraging for new professionals. But certain challenges arise due to the perishable nature of grocery products. This makes operating online grocery stores more challenging than managing e-commerce shops for clothes, electronics, home décor, and various other products.
How Does It Work? Here is a Business Model of an On-demand grocery delivery app.
The basics are – an on-demand grocery delivery store in order to sell groceries and deliver them to the customer’s doorsteps.
The crucial features of an on-demand grocery delivery store are:
a) Tie-ups with regional grocery producers or whole sellers if you are not any of them yourself
b) Establishing a sturdy delivery system to make sure orders lead customers in a timely practice.
How on demand grocery delivery business can help you earn money?
Customarily, a percentage is cut by market keepers on all orders, before giving out the payments to the grocery merchant. If you are the seller, then you can earn by service charges for delivery & service.
Secondary Income Means
- On-site promotion for merchants.
- Hosting banners commercials.
- Blogging and publishing sponsored content.
- Selling useful commodities such as jars and reusable carry bags to help you in branding.
- Selling the user data to market research organizations.
The factors that define which revenue model & streams that will bring you maximum benefit depend on:
- Target market
- Business size
- Budget, age, and reputation of the business
- Scope of the grocery delivery app
According to an article CNBC, online grocery sales are set to increase and assumed to seize 20% of the market by the year 2025. Another statistic report implies that the usage of a grocery app would increase by 50% in 2018.
At this hour, you need to strategically change your sales tactics in order to reach out to the more and more potential audience.
Here are a few key players who have made it big in the on-demand grocery delivery industry:
These companies have already made their mark in on-demand grocery delivery app businesses. It is best for you to follow the technological route to deliver best-in-class services in order to conquer the race of grocery delivery app.
Recent fundings and expansions that happened in the Grocery Delivery Industry
According to a report in Grocery Dive, the online grocery market expected to reach $26.9B by 2025.
The growth is attached to the technological progress, service extension and other innovations along with growing customer recognition.
Here are the expansions and fundings that have occurred in the grocery delivery market in recent past :
» The supermarket chain, Lidl grew 7.4 % in 2018 and has announced the opening of 40 new stores across the world in June 2019. It also planned to invest £500 million in order to ramp up its presence in London. It will experience the rise in its footfall and would add 1,500 jobs. It would also introduce a full-size store on Tottenham Court Road in the city center.
» Amazon and Morrisons have introduced the same day grocery delivery to many of the UK cities including Glasgow, Newcastle, Liverpool, Sheffield and Portsmouth over 2019.
» The grocery delivery service in Korea called Kurly has raised around a total of $113 Million after its Series D funding round.
» More recently, Grofers has raised $220 million from SoftBank Vision Fund and its other investors. It has marked India’s biggest fundraising for the online grocery delivery industry.
Features to include or you should consider while developing Grocery Delivery app:
Like every other on-demand app, the grocery delivery app also has 3 modules-
User, Admin and Delivery person modules:
Let’s discuss in detail the features we can include in the client side of the application.
► User Module:
The first important part is the registration page where the user would register his account by his email id or phone number.
Once the account gets registered, he must proceed to create a personal user profile including the details like residential address, age, etc.
» Search Products
Allowing the customer to search for a particular product and also helping him to browse through the different category of items is another important feature to include in your grocery delivery app.
» Add to Cart
The Add to Cart option allows a customer to add a product of his choice that he can buy later.
» Managing the Items in the cart
The customers are allowed to review and manage the items before making the payment.
» Payment Gateway integration
Payment gateway integration becomes an essential part for most of the on-demand apps including grocery in order to allow the customers to pay efficiently using the different options according to his convenience.
» Scheduling the Delivery and Tracking Order
The convenient scheduling of the delivery and tracking the status of the order and know when it’s going to be delivered.
» Push Notifications
You can transmit notifications about best offers and discounts, attractive coupons, etc. to your loyal customers using push notifications.
» Reviews and Ratings
Enable the customers to send their feedback about their experiences about using the app.
In order to improve the experience, look to implement the chatbot, which is a virtual assistant, answering questions in real-time for customer support.
►Delivery person module:
The delivery person module features include:
- Delivery requests- either accept or reject.
- Push notification
- Map Integration
- Turn-by-turn navigation
- Availability setting
- Delivery time slots
The last but not the least, the admin module includes the management of Users, products, drivers,orders and also resetting passwords.
Technology Stack used for a properly exhibited On-Demand Grocery App:
The technology stack used to create an on-demand grocery app varies from business to business. It depends on the skill-set and the budget that the entrepreneurs have fixed in name of the cost of mobile app development.
The technologies used at Coruscate are:
Cost of Grocery app development with Coruscate:
The accurate answer to grocery app development costs is a number that can be estimated only after examining your business requirements and demands from the project.
But if you consider the basic features and the tech stack that we have explained, the app will cost you around $10000 to $15000. The time required to complete the grocery delivery app will be around 45-55 days.
However, the number can positively change depending on how your demand changes.
Now, that you are aware of the business modules, scope and recent developments in the grocery app industry, all that you need to get started with your on-demand grocery delivery business is to get going with the grocery delivery app development process.
Get in touch with us to know how you can earn profits with the grocery app and ask for a free demo.
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