How to Build an Instant Grocery Delivery App like Instacart?

By Vikash Soni App Development 0 Comments 72 Views

The online Grocery delivery industry is experiencing 58% customer reliance. Today, from simple dairy to exclusive house essentials, we have access to every little thing delivered to our doorstep, making life easier than ever!

However, this shift isn’t just about convenience – it’s a transformative business model that both consumers and entrepreneurs are embracing. On-demand grocery delivery applications are reshaping the retail landscape, presenting a range of opportunities for businesses looking to capitalize on this growing industry.

According to Statista, the revenue from Grocery Delivery applications in the United States is expected to reach US$327.90 billion by 2025. This growth rate sparks a critical question for aspiring entrepreneurs: How beneficial is developing a grocery delivery app?

Instacart is a leading application that has played a significant role in transforming the grocery delivery industry into a billion-dollar industry. This raises several key questions:

What makes Instacart a leading choice for the US market?
How does an app like Instacart make money?
How to attract businesses and investors?

Whether you are an aspiring entrepreneur or have an established business, this guide will serve as a blueprint for entering the online grocery delivery industry. Read on to learn about various new aspects behind Instacart’s success.

What is Instacart?

Instacart is a famous grocery delivery service provider in the United States and Canada. It ensures the convenient delivery of groceries, and household daily essentials within a single day or in just a few hours. Instacart partners with local or national vendors to provide user-friendly and all-product access to customers in just a few taps.

In addition to grocery delivery, Instacart has expanded its services to deliver alcohol to customers’ doorsteps. It ensures alcohol delivery in certain regions or areas of the US.

Additionally, it offers products related to pharmacies and pet supply stores. Instacart is connected with the most famous grocery store chains in the United States, such as Kroger, Costco, Aldi, and Safeway.

This free grocery delivery app has gained popularity in the market, after the Covid outbreak when customers faced travelling restrictions. Since then, research analysis has never encountered a downfall in Instacart’s success.

Key Features of the Instacart App

Whenever you talk about online delivery applications, you must have surely heard of what makes Instacart a preferred choice for most customers. This section will help you understand the innovation of the on-demand app like Instacart.

Real-Time Inventory
Multiple Store Selection
User-Friendly Interface
Real-Time Order Tracking
Personalized Shopping Recommendations
Customizable Delivery Options
Exclusive Membership Benefits
Advanced Search Filters
Substitution Preferences
Alcohol and Specialty Item Delivery
In-App Payment Options
Discounts and Promotions
Interactive Shopping Lists
Customer Support Integration

How to Use the Best Grocery Delivery App Like Instacart?

In this technological landscape, where most of the customers believe in online shopping, about 27% of online grocery delivery users in the United States rely on Instacart to fulfill their everyday needs. Instacart is a blend of innovative logistics, user-friendly design, and technology. It works as a bridge between local stores, personal shoppers, and customers.

Prominent e-commerce app development companies take inspiration from Instacart applications to build seamless and user-friendly applications. Many of you must be concerned about the process of working on an app like Instacart. Let’s break down the process of using a fast grocery delivery app near me.

Input Your Location

Whenever you open an application, it requires you to add your location. This is one of the most essential steps, as it allows them to showcase the options that are easily available to you. These recommended stores can be a local grocery store or a nationwide chain like Kroger or Costco. This process ensures that you can trust the app that you are using for essential products.

Building Your Virtual Cart

Shopping through Instacart is quite similar to traditional shopping, where you wander through many stores. However, there are certain differences in how the products are properly organized so that they are available with just a single search. You can also access filtration options to narrow your options to match lifestyle choices and dietary preferences.

Many recommend it due to its real-time pricing system, availability, and deals. It can also substitute for product availability. Furthermore, online grocery stores are available 24/7 to fulfill your needs.

Assign a Personal Shopper

When a user places an order, Instacart assigns one personal shopper to collect the groceries. Moreover, the personal shopper is now responsible for delivering fresh, uncracked items to the users.

Shoppers can also offer update or substitution information to the users through an application. It ensures the provision of personalized recommendations to make an app feel known to the users.

Delivery or Pickup

Instacart follows a flexible delivery time model, it can be adjusted as per your availability or you can also opt for a curbside pickup option. There are times when an order is delivered in less than one hour, it depends on the distance of the store and shopper availability. For people who believe in planning, it also has scheduling options, ensuring your home is filled with all the essentials before you need them the most.

Payments or Rewards

Instacart is a leading grocery delivery app that accepts ebt (Electronic Benefits Transfer) payment system after an order is processed securely through an application. On certain products, you will also get some additional rewards or points while shopping. In short, Instacart ensures to make the grocery shopping simple and fast, making it more convenient for users.

Real-Life Stats Showcasing a Leading Grocery Delivery App in the US Market

Grocery delivery app software stands among one of the highly competitive industries. Today a lot of customers rely on mobile applications to buy groceries and do other essential functions. You will understand the growth of this industry after checking the growing market stats of the best grocery delivery applications like Instacart.

A research report by Statista shows that the online grocery market is expected to reach US $945.00 billion by 2025 at a growth rate of 9.77% and US$ 1,372 billion by the year 2029.
An interesting fact about this industry is that most of the revenue is generated from the US market, calculated to be around US$ 327,900.0 million in 2025.
The average number of grocery application users is expected to increase by 2,458.0 million by 2029.

Through these stats, you can understand the growth rate of the online grocery delivery application. However, Instacart has turned out to be the best grocery delivery app for the US market. Every business is giving a reference of Instacart to the mobile app development company.

There are various reasons for the success of the Instacart app like innovation, timing, and a deep understanding of the user’s expectations. Let’s understand a few more reasons for the growth of the cheapest grocery delivery app:

Solutions for Long Waiting Time

In the earlier days, you must have definitely heard that grocery shopping is a complex task, it isn’t enjoyable. This problem has been resolved by a popular grocery app Instacart. Now customers can buy products without compromising the quality and the availability of the product.

Strategic Partnership

One main reason for its nationwide success is its partnership with local vendors and popular supply chains. It has allowed them to scale quickly without requiring them to maintain their own stock.

Even the businesses who partner with Instacart have various benefits without investing in their own online platform they can now capture their online users.

Personalized User Experience

User experience is the main priority of the Instacart shoppers, to maintain user experience they provide real-time inventory updates, live chat support, and more.

It also provides the ability to reorder from your previous purchase, access multiple stores in one place, and provide an intuitive shopping list.

Speedy Delivery and Flexibility

Every other user is looking for an instant delivery within a short period. Instacart plays a significant role in processing on-demand quick delivery with flexible scheduling options making it a convenient choice for users. It has been used by more than 85% of US households according to the research report given by Statista.

Customer-Centric Approach

Instacart not only focuses on the logistics and the technology used for developing an application, but it also gives major attention to enhancing user experience. It ensures to provision of personalized services to the users by allowing them to leave description messages to the users, it builds a sense of trust and reliability in the application.

Innovative Features

Instacart has been continuously evolving to stay ahead in this crowded market. Some of its innovative features are Instacart membership and AI-driven product recommendations. It also gives a free delivery system and free perks to the users based on their order history.

How Does a Grocery Delivery App Like Instacart Make Money

Instacart, a leading grocery delivery app in the United States was founded in the year 2012 by Apoorva Mehta. While working at Amazon she realized the need for a grocery application. Here, Instacart came into the conversation.

The stats shown in this blog simplify the growth of the grocery delivery app. But, how does an app like Instacart make money? Unlike traditional grocery stores that only depend on the in-person visit of the customers to generate revenue. On-demand grocery apps depend on factors like customer convenience, partnerships, and more.

Read further to know how Instacart makes money:

Delivery and Service Fees

The primary method of generating revenue through online delivery apps comes from the fees charged by customers for delivery and service. These factors vary from order to order:

Delivery Fees: Usually delivery fees of an online product range from $3.99 to $7.99 per order. Moreover, it may be higher during peak season or hours.
Service Fees: This is an additional fee on every item that may range from 5% to 10% of the total order value. These fees include operational and maintenance costs.

Instacart + Membership

If you are a frequent online shopper, you must purchase a premium Instacart membership known as Instacart Express.

Instacart + membership is available for $99 annually or $9.99 monthly.
Subscription plans provide free delivery on the app orders over $35 and the service charges are also reduced.

Retail Partnerships

Instacart doesn’t stock products in its own inventory. Furthermore, it builds partnerships with thousands of retailers and grocery stores. It is treated as a middleman between customers and grocery stores. But, Instacart doesn’t provide this service free of cost.

Commission Fees: Instacart charges commission fees on every order placed through the platform. This fee varies from product to product, it is often a certain percentage of the order value given by the retailers.
Ad Placement and Promotions: If a retailer wants to showcase their product on the top, or on featured sports-like category pages. This will cost them a specific amount based on the number of products and type of products.

In-App Advertising

Another possible way of earning revenue is an in-app advertising system. It allows brands to promote their products directly to users.

Sponsored Products: Brands pay to ensure that their products are prominently displayed when a user searches for a product by entering a keyword like “breakfast”.

Banner Ads: Some of the popular brands also plan to invest in banner ads to drive visibility and sales.

Tipping

Whenever a user gives a tip to the shopper, it indirectly benefits the business model of the application. This system encourages shoppers to accept more orders, and it also results in on-time deliveries and increased customer satisfaction. Furthermore, happy customers are more likely to return, enhancing long-term loyalty and growth of revenue.

Data Monetization

As the demand for Instacart is continuously growing, customer data is also increasing. This can be used to analyze shopping patterns, regional trends, and brand preferences.

Instamart customer data can now be used to provide analytics services to the brands. Helping them optimize their marketing strategies and product offerings.
Though it does not play a significant role in the recent monetization strategies, it is considered a beneficial approach for future growth.

Essential Features Required to Build a Successful Grocery Delivery Application

Instant grocery delivery apps like Instacart, have been there in the market before the pandemic as well, but after the Covid scenario, it has become a necessity. If you are planning to build an online delivery app like Instacart, ensure to incorporate the essential features given below:

Registration: Before making a purchase a consumer has to register on the app. Being an owner make sure that the registration process is simple and fast.
Search Features: If you want to provide personalized results to the users ensure that an app has a search and filtration option, so users can find an accurate result as per their interest.
Payment Process: Ensure the integration of seamless payment methods, so users can comfortably make payments on your app, without any thought related to reliability concerns.
Schedule Delivery: This is one of the most searched features by users who look to follow the schedule but do not have much time to place an order whenever required. With the scheduling feature, users can get products at their convenience.
Ordering & Cancellation: App like Instacart must allow users to select the product they want to order with the help of ordering features. Other than this it must also provide an opportunity to cancel an order before it is dispatched.

Let’s look at some more features:

GPS Tracking: Once an order is placed, users must get a tracking id, which allows them to track the real-time status of their order. GPS tracking can be used to build patience among users during a delayed delivery.
Return and Replacement: Like every other e-commerce app, the grocery delivery app should also provide a feature that allows customers to return or replace an order during unacceptable conditions.
Push Notification: Every other business wants to keep its users updated with the latest offers and discounts. This feature can also be used to remind inactive users of the app.
Inventory Management: It is important to keep a proper record of the socks of the products that are constantly moving in and out of the store. It is an important feature to keep the brand organized and only accept the order as per the correct availability of the product.

How to Make a Grocery Delivery App?

The success of one of the best Grocery Delivery applications like Instacart excites more aspiring entrepreneurs to build a grocery application. However, the process of app development requires careful planning and execution. Here are some questions that can help you build a successful application as per your requirements:

What Are the Key Features Needed?

First and the foremost question that clicks the user’s mind is the list of the features required to integrate into the application. If you want to build a successful app ensure to inculcate the features given below:

User-friendly interface – Easy navigation and product search
Real-time inventory management – Sync with local stores
Multiple payment options – Credit/debit cards, UPI, wallets
Order tracking – Live updates on deliveries
AI-powered recommendations – Personalized shopping experience

How Much Does It Cost to Develop a Grocery App?

The second factor that affects the process of developing an application is the cost app which completely depends on the features, platform ( Android, iOS, or both), integration, and development team. The average cost of development is $30,000 – $50,000, while an application with an AI-integrated feature will cost above $100,000.

What Tech Stack is Required?

Here comes the most important step in which you are required to select the frontend, backend, and data technologies. Some of the most popular tech stacks are shown below:

Frontend: React Native, Flutter
Backend: Node.js, Python
Database: Firebase, PostgreSQL
Cloud & APIs: AWS, Google Maps API, Stripe/PayPal

How Can You Monetize Your Grocery App?

Once the process of development is completed, you start looking for ways to monetize your app. Here are some of the popular ways to earn a profit if you own a grocery delivery application.

Delivery fees – Charge per order
Subscription model – Offer premium benefits
In-app ads & partnerships – Collaborate with brands
Commission from stores – Earn a percentage per sale

How Long Does It Take to Develop a Grocery App?

Accurate time of development depends on the time size and the complexity of the application. Furthermore, the average development takes around 3-6 months.

If you are looking to build a custom grocery app. Ensure to hire an experienced Andorid or iOS app development company to transform your app idea into a reality.

How Much Does it Cost to Build an App like Instacart?

Before seeking a development approach most entrepreneurs look for the cost of developing a grocery application. But let me inform you that there is no accurate cost development until you know the complexity of the features, platform used for development, location of the developers, functionalities, and more.

Cost of Development as Per Complexity of the Features:

High Complexity: $30,000 or above.
Medium Complexity: $15,000 to $30,000
Low Complexity: usually below $15,000.

Technological Stack

Hybrid App Development: $20,000 to $150,000
Cross-Platform App Development: $20,000 to $100,000
Native App Development: $10,000 to $250,000

Platform Selection for App Development

iOS App Development: $5,000 to over $700,000
Android App Development: $5,000 to over $500,000

Development Team Location

If your team belongs to a developed country like the United States the cost of development would be comparatively higher, while mobile app development companies located in developing countries aren’t very expensive.

Development Timeline

If an app takes more time to develop the complete feature the cost of development will also increase.

This is the cost of developing a grocery delivery app like Instacart. You can also read about How Much Does It Cost to Build a Food delivery app in UAE?

Final Words

On a final note, it can be said that if you want to succeed in the instant grocery delivery industry you will have to bring certain innovations in the market that can attract potential customers through on-time delivery and more.

Though the online delivery market has a wide range of opportunities, it can only be used by investors who are willing to invest in scalable infrastructure, dynamic business models, and superior user experience.

Instacart works as an inspiration for many entrepreneurs and references for a custom software development company. To capture the user market and success of the Instacart app you need to strike the balance between execution and innovation. This is where you need to hire an experienced development company like DianApps that a proven experience in developing Uber Eats software.

How to Build an Instant Grocery Delivery App like Instacart?