Can you imagine life without smartphones and mobile apps?
I think it is challenging to live because they became part of our lives, and we use them to accomplish our daily works.
If there is a demand, they deliver soon or later.
With the advancement of technology, numerous local grocery delivery apps are making their way into the market.
According to the research of eMarketer, the demand for on-demand delivery apps has no need, and there is a long way for them.
An individual or an enterprise with good future imagination go for the development of the on-demand local grocery delivery app.
You are in the right place. Here I am going to give in detail about the development of on-demand grocery delivery app like Instacart.
Everyone is busy in their life with many schedules by which people don’t find time to reach grocery stores to buy little things.
Even though if they decided to go, the grocery stores are miles away from the place, which is very difficult to travel so much long for buying a few things for the sake of two-person.
To save from all these sufferings, we have a simple solution called Instacart, which is an on-demand grocery delivery app.
We can still find brick-and-mortar grocery stores which are still used by the users, even after the emerging of on-demand grocery delivery apps.
However, people slowly started moving to online stores. As a result soon, on-demand grocery delivery app takes over brick-and-mortar grocery stores.
If you observe the above stats, you can imagine the future of on-demand grocery delivery app.
So many grocery stores/shops started to offer their services through mobile apps to attract customers and to stay ahead of their competitors.
As you decided to develop your on-demand grocery delivery app like Instacart, you must know everything related to it.
Now, we are going to cover how an app like Instacart to make money? What is it like to work for Instacart? How much does it cost to develop?
Instacart is an online on-demand grocery delivery app in the USA, founded in 2012 by Apoorva Mehta. This business model has transformed & shivered the whole market.
The Instacart delivers the groceries on the same day. As all of you know, the startup is based out in a most demanded economy it has raised colossal funding $275 Million.
The current valuation of the Instacart is $8 Billion.
In 2017, Instacart started its operation in Canada.
The reason for the Instacart growth because of its delivery time. In recent time, Instacart is the most promising companies in the USA.
In the USA, we have plenty of on-demand local grocery delivery apps, which are following different sort of business models such as Amazon, Instacart, and Walmart model.
It depends on you which to choose.
Why Instacart delivery app?
You may be thinking why Instacart is leading in on-demand local grocery delivery apps; the reasons are:
- You can choose the products from your lovable stores.
- Delivery within 24-hours.
- Customize your pick-up and delivery time.
- Instacart saves money & time.
- Great deals & coupons.
Now it’s time to know the features of the three components related to Instacart.
Features of the Instacart app:
As you decided to develop an app like Instacart, you must know the characteristics of on-demand product delivery apps/local delivery app.
The On-demand grocery mobile app Instacart revolves around three components user, deliver, and admin panel app.
These are the basic essential features of every on-demand grocery delivery service app.
1. Ordering app:
- Profile Management.
- Product Listings & Browsing.
- Shopping cart.
- Multiple payment gateways.
- Wish list.
- Real-time tracking.
- Rating & Reviews.
- Push notifications.
- Customer support.
- Order History.
2. Delivery/Driver app:
- Accept/reject delivery requests.
- Maps integration.
- Push notifications.
- Enable/disable availability.
- Delivered orders history.
- Reports & earnings.
- Help center.
3. Admin app:
The merchants & vendors can utilize the admin app.
- Product management.
- Driver management.
- User management.
- Order management.
- Commission management.
- Payment Management.
Can access various components of app and web.
Social media campaign Management.
The promotion offers and discount coupons.
If you can afford more money, you can add extra features for your local shopping delivery app to stand out with the other grocery ordering apps.
If you are keen on getting more customers for your app, you can blindly add these features to your app.
- Sign-up with social networks:
Nowadays, everyone has a social media account, whether it is snapchat, WhatsApp, Instagram, and many more.
You can allow the users to register using social media accounts without wasting much time in filling up the forms.
It makes the registration/sign-up process easier & faster for the users, which increases the interaction between an app and user.
So ask your mobile app development company to integrate social media login to your app for grocery delivery.
- Alternative option:
It can be stand out feature of the goods delivery app. This feature helps to add a substitute item when an item is unavailable.
- Chat support:
Chat support is helpful for the customer and drivers when they need any technical assistance. Apart from that, chat support assists you to contact the delivery person when a customer wants to change the delivery in the last minute.
Customer service is valuable then delivery of a product.
It is the latest artificial technology which is using by very less number of startups and on-demand grocery delivery apps.
The Chatbots helps in faster communication with the users 24*7 through mobile apps and messaging applications naturally to assist you in various aspects such as stores, products, and accessible recipes.
- Feedback form:
The feedback forms help the startup to grow exponentially by taking the right feedback from the customers and drivers.
This way, you can keep an eye on the performance of the app. Along with the feedback form, you can add ratings & reviews sections for the customers to know company performance and issues, so that you can work in that direction to cleat those problems.
- Instacart business model:
Why every business enterprise/startups are developing mobile apps?
To generate revenue and profits.
If you develop a mobile, you need to pay for your representatives who are delivering work for you.
So, it is your responsibility to look after the revenue generations methods as you are showing interest in developing an app similar to Instacart.
You also came into the mobile app business to earn money. Right?
If so, this section is for you.
These are various ways companies like Instacart make money.
- Instacart Express:
One of the revenue creation methods is Instacart express. It is the premium membership given by the Instacart for $99/annually.
The users who opt for the Instacart express get free delivery of groceries for one year with some terms and conditions.
- Delivery charges:
It is the most common revenue method of companies similar to
Instacart. Every order you places through the Instacart places delivery fee other than the product price.
Instacart collects the delivery charges based on the time of delivery.
If you place an order more than $35, then it charges you $3.99 for 2 hours delivery and $5.99 for one-hour delivery.
If your cart price doesn’t exceed $35, then the charges are $7.99 for 2 hours and $9.99 for one-hour delivery.
Every mobile app uses this monetization method. Many apps place advertisements of the other companies/service providers in the app for which they pay you the money.
- Markup prices:
All the stores listed in the Instacart not sell the product on the norms of the Instacart. Some stores sell for the same price, but some stores charge you the 15% markup price.
The revenue that generated from the markup pricing goes to Instacart app, from which they pay to the stores.
You can also charge the stores to list their products in your app that delivers groceries. If you are the best grocery delivery app to work for, you can collect/charge money from the stores to partner with your app.
These are the various monetization methods used by Instacart delivery app. You can choose one or all modes.
How Instacart works?
It is also another factor you must understand before you consult the mobile app development company. You need to know how does Instacart works.
- Step1: Select your favorite local grocery shop/store
The Instacart app is available for free on Android and IOS platforms. You can find various apps for a user, driver, and shoppers.
Download the Instacart app based on your platform (Android/IOS). After app download complete sign-up and profile personalization process.
The next step is to enable user location to pull you up nearest stores/shops.
In the given nearest you can select your favorite local shop.
- Step2: Place/Schedule your grocery delivery.
After selecting the store, choose the items which are required by you. After adding all grocery items to your cart place your order.
As your items delivered in early as an hour, then you schedule your delivery at the end of your day or week.
Instacart Express member no need to pay for delivery.
- Step3: Get groceries delivered at your doorstep
After placing the order, according to your delivery time, they reach to your doors.
How much does it cost to develop on-demand grocery delivery (Instacart) app?
As of now, you have gone through all the details about its features, history, revenue model, and many more.
Now, let us know the cost to develop an on-demand grocery delivery app.
The cost of a mobile app calculated as:
App development cost: Number of hours to develop * Mobile app developer cost
The cost mainly depends on the four factors:
- App complexity:
Mobile apps categorized based on its complexity they are Simple, medium, and high-end.
The basic version of a mobile app costs you very less compared to the other two. So, choose according to your on-demand grocery development features and functionalities.
- App platforms:
As the number of platforms increases the cost of the app development also increases.
It entirely depends on the enterprise on how many platforms they want to start if you are startup better to go with the single platform.
- App development team:
It is the cost deciding factor of mobile app development. So, choose very carefully.
The team required for the on-demand grocery delivery app:
- Project Manager.
- 2- Requirement analyst.
- 1-2 Web developers.
- 2- QA engineers.
- 2- Android app developers
- 2- IOS app developers
- 1-2 UI/UX designers.
You can choose your app development team from a multinational company or startup.
If you opt for a startup company, they charge you low, and if you opt for MNC, then they charge you a very high price.
- Developers team location:
Apart from the firm you choose, their location also affects your on-demand grocery delivery app.
The cost of developers differs from region to region and country to country.
Developers in India: $10-80/hour
Developers in Eastern Europe: $30-150/hour
USA developer cost: $50-250/hour.
It is better to choose your mobile app development team from India for the user-friendly budget.
So, considering all the factors, it is going to cost you around $25,000-$30,000 for a single platform. If you are going for another platform, then the cost may go up to $50,000.
It is an approximate cost to develop an on-demand grocery delivery app like Instacart. The cost of your app varies according to your ideology and features.
I hope you got brief information about the on-demand grocery delivery app. If not, don’t hesitate to contact us.
We have a great team of experienced professionals who are capable of clearing all your doubts regarding your grocery app development.
Please reach us, we are happy to serve you.