We live in an era in which every service we need is just a few taps away from the mobile application. If you are looking for a cab, taxi booking apps can help you with it, Looking for a good meal, then food delivery apps can help you. Likewise, every service we look for has a dedicated niche of mobile applications in the Mobile App Stores.

The grocery industry is no different from this trend, By now many of your competitors have already developed their own white-label grocery delivery apps for their stores or supermarkets. This article will give you insights into grocery delivery app development costs.

If you are an entrepreneur in the grocery industry or looking to widen your service range through online customers, then having a grocery delivery app can boost the sales with right marketing strategies. This article provides you insights into the cost breakdown for grocery app development.  

An Overview Of The Grocery Delivery Market in 2024

It is proven that the in-shop experience makes few customers happy, but most of the customers expect rapid delivery services for their orders. This unlocks huge potential for online grocery delivery services to boom. Although numerous factors disrupt the grocery industry like changes in user behaviors, complex logistics, and cost raise in raw materials and labor.

Statista estimated that by 2027, the total number of users who use online grocery delivery services will be around 281.60 Million. If grocery store owners are ready to transform their businesses to address the challenges with modern technological solutions like online grocery delivery apps, then the company can be profitable and sustain the competitive market.

The global food and grocery industry is expected to rise in the year 2024 at a steady rate. The United States and Europe play a vital role in this market growth. Even though there are many large players in this industry, the anticipated higher user volume in upcoming years can create ample amount of opportunities for startups and regional grocery stores/supermarkets. The integration of advanced technologies and addressing the current-day grocery delivery challenges can put in a successful trajectory. 

Top Competitors In the Industry

Instacart

Available on Android & iOS

Instacart is a leading grocery delivery app in the United States which serves all 50 states. The app does charge a delivery fee for regular users. The app has membership plans starting from $99/year or $9.99/month which offers free delivery for orders above $35. It has more than 40,000 stores and more than 500 million products listed on the platform.

Postmates

Available on Android & iOS

Postmates is the leading competitor of Instacart in the United States. Postmates delivers to 4200 cities in and around America. Unlike Instacart, Postmates will give you free delivery with no minimum cart value. It can also deliver more than groceries, people can order anything from the app and get them delivered in an hour within the city limit. 

BigBasket

Available on Android & iOS

BigBasket is a leading grocery delivery app in India. BigBasket has 10 million registered users and the app has gained so much popularity across the nation because of its responsive chat feature that can resolve all queries and ensures fast delivery. They also provide a hassle-free return for damaged or expired products.

Shipt

Available on Android & iOS

Shipt serves in the United States with an estimated revenue of 120 million USD/year. Shipt is so successful because it offers multiple features like “buy again”, “what's on sale”, and so on. Shipt has a membership plan for $15/per month and $99/per month. 

Fresh Direct

Available on Android & iOS

Fresh Direct focuses on delivering fresh products to its customers. The app is widely used in states like New Jersey, New York, Delaware, Connecticut, and several other North Eastern states. The products are expensive when it is compared to other apps, because of their product freshness and customers know why they pay extra.

Grocery Delivery App: Modules, Types & Workflow

Modules In The Grocery Delivery App

The grocery delivery platform is covered with a whole suite of apps to help manage the entire business operations. 

Customer App: 

The customer app will give you a personalized dashboard that provides all the order details, personal information, and recently ordered items. The customers can also add reviews for the deliveries. 

Admin App:

This app helps you keep track of important things like customer service metrics, sales volumes, and order status. It also allows you to manage all aspects of Grocery Delivery, including adding or removing drivers/users, changing payment methods, or even making sweeping changes to the entire system.

Driver App:

This app allows drivers to access all the information they need about where they are delivering orders from. They can get route maps and delivery times for each location, as well as alerts if there are any delays or changes in schedule due to weather conditions or traffic jams.

Workflow Of The Grocery Delivery App

The workflow of the grocery delivery app is explained in a few intricate steps below,

(i) The customer can sign up/log in through the customer app and order the groceries they need after surfing the entire list of grocery stores. 

(ii) Once the order is placed, the admin can approve/deny the order. 

(iii) After the admin's approval, the order is pushed to the stores, and the groceries are packed and shipped to the nearest hub of the delivery location.

(iv) When the order is ready for delivery, the driver can pick and deliver it to the customer. (v) Both customer and driver apps keep tabs on the entire process.

(vi) After the successful delivery, the admin can close the order, check for the payment process, and update the inventory.

Grocery Delivery Apps For Different Types Of Business Models

Personalized Grocery App For Single Store

In this business model, the grocery store owner develops a dedicated app for his business customers. He/she is solely responsible for adding, updating, deleting, approving, denial of orders on his platform. This app can be helpful if the business has brand value and loyal customers. 

Grocery Store Chain

This business model works for a chain of supermarkets or grocery stores. If you own multiple stores and are not interested in partnering with third-party delivery services, then having a grocery delivery app can be profitable. The best example of this business model is Walmart.

Aggregator Grocery App

The aggregator platform lists an entire list of available grocery stores available in a particular location, from which users can order from their desired store. Every store can be managed by a separate app that store owners can manage. The delivery is managed by the respective store owners.

Grocery App For Marketplace

The best example of marketplace grocery apps is Big Basket, Instacart, and so on. This business model is similar to that of an aggregator business model, but here delivery executives are assigned by the platform with a dedicated delivery personnel app.

Grocery App Development Cost on an Hourly Basis

The cost of grocery app development depends mainly on the location of the developers you choose. Hourly rates vary from country to country. You can get your product launched at an optimal budget if you work with the right development team. Below are the average hourly rates for the development,

India: $10 - $60 (approx)

United States: $100 - $150 (approx)

Europe: $60 - $100 (approx)

Why Do Most Entrepreneurs Choose India For Grocery App Development?

India is a great place for entrepreneurs to develop grocery delivery apps. The country is well-equipped with the necessary resources and infrastructure to support international projects. Furthermore, India has several advantages that make it attractive to entrepreneurs looking to develop grocery apps such as its low development cost, access to skilled developers and designers, and supportive government policies.

Additionally, there are numerous use cases of successful Indian grocery app development projects that serve as an inspiration for other aspiring entrepreneurs. All in all, India is an ideal destination for those who want to create innovative and successful grocery apps.

Grocery App Development Cost Analysis

There are two ways in which the cost can vary on your grocery app development. One you can go with a ready-made solution that has a fixed price globally which is around $5000 - $20,000. This ready-made solution has many downsides to it,

(i) The script is almost the same for all projects, with no uniqueness.

(ii) Not more, not less. Every add-on or modification in the script will be charged by the companies.

(iii) Has numerous bugs and a complex coding structure for future updations.

(iii) Has serious scalability issues in most devices. Has a high probability of uninstalling the app.

On the other hand, Custom software development is preferred mostly by entrepreneurs. The cost of a custom grocery delivery app can be estimated by multiplying it by the location-based development rates.

For example, If you select to go with the Indian developers, Then the average grocery delivery app development cost in India will be around $20,000 - $40,000. The perks of custom software development are

(i) Unique design.

(ii) Any errors or updates can be easily carried out.

(iii) As you opt out of a custom software solution, you can rely on the company for any support & maintenance.

You may like to know: How much does it cost to make an app?

Technology Stacks Used In Grocery App Development Process

The technology stack involved in the development of grocery delivery apps is,

Mobile Platforms - Android, and iOS.

Database - Firebase, MongoDB, Postgres.

Cloud Environment - AWS, Google.

Payment Gateway - Paypay, Stripe, Braintree.

Location - Google Maps, Mapbox.

Real-time Analytics - Bigdata, datadoe.

Take Away

Now that you have a rough estimation of the cost needed to develop a grocery delivery app in India doesn’t lead you to a successful product. You can see every single company online will promise you to deliver the product in the best way you expect, but that is not the truth. 

Every aspiring business startup will expect the finest product for their services. Likewise, a grocery delivery app must work flawlessly for the money you invest in. Few companies will deliver you a product with must-have features for the basic functioning of grocery delivery which is more like an MVP. You can upgrade it with add-ons in the future. So choosing the right Mobile app development company will work wonders for your business venture. 

Maticz is a leading Grocery app development company that has successfully launched more than 70+ grocery delivery apps in the market and has clients in over 16 countries. Our team of experts can pitch you a product that can be customized for your business requirements. Get started with your grocery delivery app with us!

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