On-demand services like grocery delivery apps are just a blessing in disguise that helps to satisfy users’ needs and demands with just a tap. In this technically advanced and modern world, every person depends on digitalization to fulfill their daily needs and demands. This is where the on-demand grocery delivery app has started gaining immense popularity, and businesses are planning to develop an app like Instacart.
As soon as businesses decide to develop a grocery app, the foremost question that strikes their mind is, ‘How to make a grocery app like Instacart?’ ‘How much does it cost to develop a grocery delivery app?’ So, if this is your concern too, don’t miss reading this blog. It will help you know everything about grocery delivery app development.
What Is Instacart & How Does It Work?
Instacart is an online grocery delivery app that lets users place grocery orders and get them delivered to their doorstep. Developed in 2012, Instacart has gained popularity, especially in the USA. However, the concept isn’t brand new, as traditional supermarkets have been offering home delivery for decades. Still, the other perks of grocery app development have made them the talk of the town.
You would be surprised to know that 22.4 million customers are currently using grocery and food delivery applications, and the number is expected to rise to 11,205 billion by the end of 2022.
Now, the users do not have to call the grocery stores to get their orders. They can simply place an order, make the payment, and get everything delivered. The same way the Instacart grocery delivery app works.
- Consumers place an order via the Instacart app.
- Consumers make the payment via a secure payment gateway.
- Shoppers (Instacart employees) get a notification when the consumer places an order.
- Shopper accepts an order, purchase products, and deliver them.
Business Model of Grocery Delivery App Like Instacart
Generally, three different models for grocery delivery apps are available that help businesses earn money out of their services and products. Here is a detailed overview of each of them. Refer to them and include the best one in your grocery delivery app.
1. Services Charges
This grocery delivery business model involves earning high profit and revenue while working independently and offering online grocery delivery services.
2. Commission Model
This business model for an on-demand grocery app involves implementing commission charges on multiple goods and services. The commission further depends on the trending products or currently in demand.
3. Subscription Model
This online grocery store builder model involves multiple offers depending upon the subscription plan users buy to avail online grocery delivery services.
The business model you pick for your grocery delivery app will greatly affect its cost and success in the coming time. So, think of it wisely and pick the best suitable model for your grocery delivery app. After that, you can begin your process of grocery delivery mobile app development.
How to Develop A Grocery Delivery App Like Instacart Within Your Budget?
Are you planning to develop a grocery store delivery app within a low budget? This section could be of great help to you. It explains the complete step-by-step process that will help you develop a result-driven and user-friendly grocery app within your budget. So, let’s get started with the grocery app development cost analysis process while discovering the best ways to create an app.
1. Get A Clear Business Idea
First of all, get a clear grocery delivery business idea before even stepping into the process to create a mobile app for your grocery business. Once your business idea is cleared, you can make the development plan accordingly and get an estimate of the grocery delivery app development cost.
As soon as you have a plan in hand, choose a suitable business model from the options mentioned above. As you already know, choosing a grocery delivery model is crucial, so make your decision wisely.
2. Focus on Technical Documentation
The next step includes adding technical information for your on-demand grocery delivery app. Here, you will have to incorporate multiple techniques to develop a unique and working grocery delivery app development idea. So, think of an architectural framework, the development process, app development requirements, grocery delivery app features, and more before beginning the development process.
Preparing all of this before the development will help you estimate the cost to develop a grocery delivery app like Instacart.
3. Choose A Compatible Development Platform
The development platform you choose for your grocery store delivery app will also affect its pricing to a great extent. Make sure your app must be compatible enough to be accessed from all the platforms. So, while you are in the process of ‘How to create a grocery delivery app?’ try to develop an app compatible with Android, iOS, and both platforms together.
Undoubtedly, the process will cost you a little high but will assure more success and profit in the coming time. So, think of it.
4. Include Unique Features & Functionalities
The type of feature you include in your grocery delivery app will also affect its success and cost. So, besides focusing on the basic features of an app like Instacart, think of something new that users find enticing and interesting enough to stick to your grocery app. But, remember that the more features you will include in your mobile app, the higher the cost.
So, take your decision while keeping the grocery delivery app budget into consideration.
5. Think of Appealing UX/UI Design
Like the features of a mobile app, its design also matters in making an application stand out. So, this step of grocery app development is all about identifying the usability, desirability, user interaction, and first-time user experience within an application. But, make sure to keep the application simple yet appealing. If your application is too complex and contains so many features, be ready to pay a huge amount for your grocery app’s design.
Developing a feature-rich grocery delivery app like Instacart isn’t a big deal if you are well-versed with the process. Now that you know ‘How to develop a grocery delivery app?’ within reasonable prices, get started immediately. Also, if you are wondering about the factors that might affect the mobile app development cost, continue reading the succeeding section.
Major Factors Affecting Grocery Delivery App Development Cost
On average, grocery delivery app development costs around $30,000 – $70,000. Multiple factors affect the cost to develop a grocery delivery app like Instacart, and we have highlighted the major factors below.
1. App Complexity
The application’s complexity is one of the major factors that can increase your grocery application’s cost to a great extent. The more the number of features in the application, the higher its cost. Also, the grocery delivery app developer will have to spend more time on the app’s design and development, which automatically increases the cost.
2. Tech Stacks
The tech stack used for grocery app development varies from one app type to the other. Different tech stacks are required for the different features and functionalities of a grocery app, as highlighted below.
|Push Notifications||Twilio, Push.io|
|Database||MongoDB, HBase, Cassandra, Postgress|
|Cloud Environment||AWS, Google, Azure|
|Payment Methods||eWallets, PayPal, Stripe, Braintree|
|Real-time Analytics||IBM, BigData, Cisco, Hadoop, Spark|
|Phone Verification & SMS||Nexmo, Twilio|
3. Third-Party Integrations
Integrations play a very crucial role in enhancing the application’s productivity and, in turn, result in a better use experience. Including third-party integrations while developing a grocery delivery app is necessary. So, this factor adds some cost to the development process. If you want to use your own integrations, well and good, and if not, you can go for third-party integrations.
So, it is better to ask the grocery mobile app developer whether he will be using third-party integrations into your grocery delivery app or not.
4. Development Team
Besides development, design, features, and tech stack, the grocery mobile app developer you hire will also affect its cost. For instance, some businesses prefer to go for an in-house team of developers, while some outsource their projects to a well-known mobile app development company. Still, to help you get a clear picture of the cost, we have mentioned the cost for different types of a development team.
|Type of team||Hourly rate||Cost of an MVP|
Coming to the last yet another crucial factor affecting the cost of grocery delivery app development is the location of the developer you are hiring. The developers’ charges on an hourly basis, as you move from one region to the other, the cost varies. So, you need to pick the location of the developer wisely.
It is suggested to hire grocery delivery app developers in the US as they can offer you the best mobile app development assistance at reasonable prices.
So, these are all the major factors that can affect your grocery delivery app development cost to a great extent. Now that you know the things that can increase your budget be careful and plan the process smartly. You can also ask the professionals to conduct a grocery app development cost analysis and offer you an idea of the amount required. Also, you can work smartly to gain amazing profit from your grocery app and cover the amount spent on the development. Want to know how? Continue reading.
How to Make Money From Grocery Delivery App Like Instacart?
Now that you have planned to spend money to develop a grocery delivery app like Instacart, it is time to know the best ways to make money out of it. Wondering, how? Here you go!
• Commission on Food Orders
Being an owner of the grocery food delivery marketplace app, you can charge some commission on food orders placed in the form of a percentage or fixed amount. It is a smart strategy to allow restaurants to use your platform for free, but while taking commissions on each order placed, you can make a huge profit from your grocery delivery app.
• Delivery Charges
Maximum restaurants do not prefer to hire delivery staff. So, this is where you can grab a chance to earn business profit. You can simply take delivery charges from both the buyer and the driver whenever an order is placed. This is one of the best features of grocery app development that can help you earn more profit from your application.
• Vendor Subscription Fees
This model is best suitable for those vendors who aren’t comfortable paying commission for each order. So, while using this revenue model in your on-demand grocery app, you can charge a fixed amount from the vendors in the form of a subscription fee. As a result, those vendors can use your services for a fixed period and then need to revenue the subscription after that tenure.
• Banner Ads & On-site Promotion
Allowing sellers to run tailor-made advertisements via banners on the platform homepage is a smart way to generate revenue from your grocery store delivery app. Here, the administrator can charge the sellers for the space and campaigns they choose for advertisements.
• Marketing Campaigns
Finally, the last yet one of the effective strategies to generate revenue and profit is by conducting social media marketing and email marketing. As restaurant owners do not get enough time to do marketing, you can offer them different plans and help them market their business to attract more customers and increase orders. Running marketing campaigns through your grocery app will benefit businesses and increase your app’s visibility.
Adhering to these strategies mentioned above will act as a business-boosting element for your grocery delivery app like Instacart and for vendors. So, do not miss these important monetization ideas while planning to make money or earn profit from your grocery app.
There is no denying that online grocery delivery apps like Instacart have become a big thing in this technically advanced world. The ever-increasing demand is a clear indication for businesses to develop a grocery delivery app like Instacart. Everything regarding grocery delivery app development cost, features, monetization, and more are already revealed to you, now is the time to implement it.
As it requires a lot of research and time to develop a mobile app from scratch, it is advisable to hire dedicated grocery delivery app developers. A better decision made today will benefit you for years to come. So, take enough time and make a wise decision.