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How Much Does It Cost To Build A Grocery Delivery App Like Instacart?

3055 Views | 6 min | Published On: April 24, 2022 Last Updated: September 19, 2022

Imagine being home alone, cooking your favorite dish, and running out of the main ingredient. Now, you can do two things. You can turn off the stove and go to the grocery store or order the item online from an app like Instacart. Most people go with option 2.

On-demand grocery delivery services allow customers to order anything and deliver it to their doorstep. According to a Nielsen report, 25% of the population is buying groceries online. The on-demand market caters to more than 22.4 million people and is worth USD 57.6 billion, out of which the grocery industry is $4.6 billion. 

The growth of on-demand grocery platforms has replaced the brick and mortar stores for fulfilling users’ daily needs. If you own a grocery store, it is time for you to take it online. A grocery app like Instacart will remind the users of your store, and there will be so many more advantages. 

In this blog, you will learn about Instacart, how to build an app like Instacart, the app’s features, the business models to pick the one that fits your business, and more.

The Scope of Grocery Delivery Apps: Why Should You Develop an App Like Instacart?

The revenue generated by the online grocery industry is increasing rapidly. We can see that customers prioritize their convenience over everything else; hence, the growth of this on-demand delivery business is prominent. People appreciate the idea of ordering groceries online and receiving deliveries on time rather than standing in queues.

Here are some of the reasons why you should get an app like Instacart:

1. By 2025, online grocery sales with acquire 20% of the market

A recent study reveals that 35% of online shoppers love placing grocery orders online. The grocery market will grow with so many people hopping on the trend. If you plan to launch your grocery business online with an app like Instacart, now is the time!

2. The grocery mobile app usage will increase by 80% in the coming months

People are so busy today that they don’t even have the time to do their daily chores. Grocery applications have eliminated the struggle of one of these tasks by offering ordering and delivery services for groceries. According to Customer Think, it is estimated that grocery mobile app usage will increase by 80%. 

3. 32% of online grocery shoppers prefer curbside pickup

The introduction of curbside pickup services has revolutionized the on-demand delivery industry. If you don’t know, curbside pickup lets users order anything online and pick it up from the store, warehouse, or other locations. Most people prefer curbside for grocery shopping. 

With such a growth in the online grocery market, you must not delay developing an app like Instacart.

app like instacart stats

5 Popular Business Models for Grocery Delivery Apps

Finding a suitable business model will be an easy task if you know your business requirements. However, if you are unsure how your business idea may perform in the market, here are the top 5 business models for on-demand grocery applications you can choose.

1. The Inventory Model

The inventory model has prominence to offer convenience to single-product shops. A platform with this model will supply directly from multiple providers. The orders will be picked up from the customers and delivered to the required location via an internal/external network. 

Inventory model

Various businesses use the inventory model to check if the production and delivery of the goods are consistent. Furthermore, profit margins are higher when a company manages its supply chain totally by purchasing directly from the company. For instance, Big Basket uses a similar model to sell goods to retailers, distributors, etc., and then store them in the warehouse.

The approach is a little costly since it necessitates the construction of a warehouse, quality control, warehouse administration, and transportation. Suppose products are not used within a specific time frame. In that case, users can remove them, and considering the initial investments, this model for developing an app like Instacart seems promising for the grocery market.

2. The Multi-Vendor Marketplace Model

Most platforms do not handle the stock of goods on their own, and to simplify the process, the platform builds a bridge between the consumers and the store owners so that the users can order their groceries, which will be given to the stores directly.

multi-vendor marketplace model

The shipping services are handled through an internal logistics network that helps businesses hassle-free ship groceries to their customers under the stores’ names. Because of the market success, a multi-vendor model has become an excellent addition to the online or on-demand grocery framework. You can simply follow this strategy if you use a multi-seller module for your grocery Instacart . 

3. The Shopping Model

The shopping model is one of the most famous and most-used models. It is pretty similar to the multi-seller model, except a user does not get to pick the store they want to purchase the groceries from before placing any order. The platform implies its distribution network for the same. Once an order is placed, the platform passes it to the vendors who buy the goods and deliver them to the customers. 

shopping model

Instacart also uses the shopping model. The business calls its delivery agents “shoppers” who purchase groceries on behalf of the consumers. This model has contributed to many businesses’ ample storage and supply network. With this business model for your app like Instacart, your business will scale new heights.

4. The Hyper-Local Model

As the name implies, a hyper-local marketplace is a market that fulfills the requirements of consumers in small regions. A walk about your neighborhood will lead you to a similar store that caters to almost all residents’ needs, albeit tiny and limited but self-sufficient.

hyper-local model

The model has a 3-tier customer strategy where customers can order required groceries and get them delivered using an app like Instacart.

The unique selling point of the businesses working on a hyper-local business model is the eagerness to offer products and services in record time. As a result, the success of various on-demand grocery stores has taken a radical direction in ordering and delivery services. 

5. The Online Selling Model

Businesses with the online selling model have various outlets as a source of money. The maximum number of sales are generated from the grocery supply and multi-seller established grocery platforms. Some of the popular revenue streams are merchandising, commissions, subscriptions, service charges, promotions, memberships, etc.

online selling model

What are the MVP Features of a Grocery Delivery App Like Instacart?

Now that you are familiar with the business models for Instacart like apps, you can consider a few more things. The development process of an on-demand grocery delivery app includes knowing the features and functionalities to include. These features how the app works and the user experience it offers. Some of the main features are:

7 Must-Have User Panel Features of an App Like Instacart

  • Login & Registration: Users should be able to sign up for the platform using their email address, contact number, and even social media accounts. The app must ask only the required information for registration to build up users’ trust.
  • Customer Feedback & Review: Users should be able to rate and add their feedback regarding the services provided to them. This will help the stores grow and other users to purchase groceries authentically.
  • Search Option: Your grocery delivery app must have a search option so that the users can search for their groceries using keywords.
  • Delivery Tracking: Using this functionality, users should be able to track their order and the delivery agent through real-time tracking. 
  • Order Management: Users should be able to manage the orders they are placing and replace them whenever required. 
  • Multiple Payment Options: Your grocery delivery app like Instacart must be integrated with a standard payment gateway. This will allow the users to make payment transactions in any convenient method, such as online and offline.
  • Schedule Delivery: With this feature, users should be able to schedule the arrival of their order depending upon their availability.

6 Must-Have Admin Panel Features of an App Like Instacart

  • Dashboard: The dashboard acts as a one-stop solution for tracking and managing all of the orders placed by customers. This also includes tasks that aid in the maintenance of a dependable grocery delivery app.
  • Order Allocation: This functionality helps the admin allocate new orders to the grocery stores and monitor their execution on each step.
  • Payment Management: The admin can view all the transactions made to the platform and manage the revenue stream.
  • Manager Assignment: This grocery delivery app enables smooth operation and execution of orders, allowing users to trust the app and include grocery store managers.
  • Inventory Management: With this feature, the admin can conveniently manage the whole inventory and send out customer orders.
  • Customer Management: This function enables grocery app owners to control their users by using your app like Instacart, including observing and collaborating.

5 Must-Have Delivery Panel Features of an App Like Instacart

  • Geo-location Services: Integrating Google maps helps the delivery agents track the customer’s location most optimally.
  • Accept/Reject Delivery Request: This feature enables the delivery agent to accept or reject any order based on the distance and time it would take to reach there.
  •  Delivery Request Notification: The store manager can be notified using this function anytime an order is placed or asked to be delivered, including the order number.
  • In-app Communication: In-app chatting and calling help the drivers communicate with the customers and the store owners.
  • Get Delivery Confirmation: This entails informing the driver of the order’s delivery status to obtain the customer’s delivery confirmation and grocery stores.

The Cost of Developing a Grocery Delivery Application at Apptunix

The cost of developing a grocery apps like Instacart depends on the features, tech stack, complexity, and the time required to create the app. 

app like instacart with apptunix

Hence the total time to develop the app is approximately 820 hours to 1060 hours for Android and 830 hours to 1080 hours for iOS. The development cost also depends on the hourly rates of the mobile app development company you partner with. 

Here is a guide to hiring app developers in 2022 for you!

At Apptunix, we offer the best services at the most affordable price. Partnering with us to develop your grocery app like Instacart costs around $38000 – $51000 for Android and $39000 – $53000 for iOS. 

If you are not familiar with our work, check out our portfolio here!

Apptunix is one of the leading mobile app development companies in the US. We have built more than 1000 applications with advanced technologies. Take your first step in the right direction by contacting our managers.

Wrapping Up

It’s time for you to get an app like Instacart that is more than just a responsive app. Share your business idea and leave it to us! We are equipped with expertise in grocery app development and the right technology for it. 

Still, have doubts? Hop on a call!

 

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