Grocery Delivery Service App like Instacart: Revenue Model, How to Start, Features and Development Cost

People who work in the grocery business now use contactless delivery as the norm. Instacart apps like this one are becoming more popular every day. These apps are a great way for grocery stores to get in touch with customers and serve them better. Many budding entrepreneurs want to take advantage of this new market trend and start a grocery delivery service of their own all over the world.

If you want to start your own grocery delivery service like Instacart, you might want to think about how you can make it better. Is that the case? Then this post is a must-read for you! Here, we will talk about:

• How Does Grocery Delivery Apps like Instacart Make Money?
• Grocery Delivery Service Apps Like Instacart: How To Start?
• Must-Have Features for Grocery Delivery App Like Instacart
• How Much Does It Cost to Develop a Grocery Delivery App?

How Does Grocery Delivery Apps like Instacart Make Money?

Now you know that there is a lot of demand for apps like Instacart that make it easy to get groceries at home. Let’s get into it and find out how these apps make money.

Delivery Fee

Grocery delivery apps like Instacart clone charge a particular fee from customers for every order placed. The delivery charges usually vary depending upon the time limit for delivery, distance, and value of the item purchased.

Partner Payments

Many businesses around the world have teamed up with the market leader in order to reach more people. Grocery delivery apps charge a partnership fee and a fee for each order to make money.

Marking up products

As a rule, most items sold on grocery delivery platforms are marked up by 10% to 20%. All of the money that comes from selling things at a higher price goes to the grocery delivery apps.

Service Charges

The grocery delivery app charges a service fee of 5% on every order. If you want to make a lot of money, you can charge customers a certain amount for their service.

Subscription Fee

Instacart and other grocery delivery apps like it charge their customers a certain fee each month. With this, customers get free delivery on orders over a certain amount.

Grocery Delivery Service Apps Like Instacart: How To Start?

Now you know how apps like instacart make money. A look at how you can start an instacart business of your own, then Before you start a grocery delivery service app like Instacart, you need to make a list of things you need to do.

Business Model

Make sure you pick a business model for your app before you start making it! You need to decide if you want to start a single store with a limited number of items or a whole grocery chain. While you are on this step, make sure you pick the right revenue model and ways to deal with commission charges, as well.

App Features

Before moving on with the development process and getting in talks with a software development company, make sure you have a list of features that you want in your grocery delivery app. While thinking about the app features, keep in mind that your ultimate goal is to provide users with an easy-to-use and navigate application.

App Design

Not at all! We don’t want you to start drawing and making a whole design for your application right now. People who know what they’re doing should take care of the same for you, However, just having a general idea of how your grocery delivery app will look and work is a good start. Professionals will be able to figure out what you want from this.

Consider the Software

You can go right to the development stages after this. This is the last step. Think about what kind of tech stack you want to use in your grocery delivery app at this point. Important tech stacks like navigation and payment gateways are some of the things you can add to your app like Instacart to make it work better.

This is a time to think about all the possible outcomes, so take your time. Keep in mind that your goal is to make people’s lives easier and easier to use by making your app simple and easy to use. You can make people who are interested in your business become customers and keep them by making a user-friendly app that is easy for them to use.

Must-Have Features for Grocery Delivery App Like Instacart

Since there is a huge demand in the market for grocery delivery apps like Instacart, there are many players in the market offering similar services. To make your new business stand out among others and meet the needs of modern-day customers. Here’s a list of must-have features for your grocery delivery app like Instacart.

Grocery Delivery Customer App Features

• User Friendly
• Multiple Payment Options
• High Speed
• Eye-Catchy Design
• Push Notification
• Schedule Delivery
• Real-time tracking
• Customer Feedback

Grocery Driver App Features

• Multiple Deliveries
• Track Route
• Accept/Decline new order
• Live Tracking

Grocery Admin App Features

• Product category
• Order Status
• Manage Customer
• Custom Notifications
• Manage Feedback
• Insights/ Reports

How Much Does It Cost to Develop a Grocery Delivery App?

The cost to develop a grocery delivery app depends upon which development process you choose. Broadly speaking, there are two types of the development process to build an application:

• Develop from scratch.
• Opt for white label solutions.

Now let us discuss both these development processes in detail.

If you choose to develop your grocery delivery app via scratch development process, then you will need to hire (whether remote or on-site):

• Project Manager – 1
• iOS Developers – 1/2
• Android Developers – 2/3
• UI/UX Designers – 1/2
• Backend Developers – 1
• QA Specialists – 2

The scratch development process is time-consuming, and as you are hiring a professional team, the development cost will be high. If you are planning to create an application with unique features or a completely new concept, then this development process is the best. Depending on what features you are looking to add to your application and its its criticality, the development cost usually varies between $40,000 and $50,000.

On the other hand, white label solutions are time-saving and cost-effective solutions to launch an application. These are pre-built and ready-to-launch solutions, thus eliminating the need to hire a team of developers. The best thing about white label solutions for grocery delivery apps is that they can be easily customised to meet your business needs. And even with customizations, you can launch your application within eight to ten weeks. The development cost with white label solutions is $15,000 – $20,000. The prices might soar depending upon the features and customization you want with the application.

Wrapping Up

Hope now you have all the information regarding the grocery delivery apps like Instacart. With the demand for these platforms increasing day by day. Any entrepreneur or investor can create their own grocery delivery app like instacart and enjoy hefty returns. Make sure you choose the right white label solutions provider to buy and customise your application. These guys will make sure that your app works swiftly and offer a unique set of features.

If you have any queries about grocery delivery apps like instacart or white label solutions. Do share them in the comment section below, and our team will answer asap.