GROCERY DELIVERY
Today, we all need to adhere to voluntary lockdown and try to leave our homes as little as possible. The pandemic of COVID-19 puts us in this position. It is very important to stay socially isolated these days.
In this case, how to get food without risking being infected? People build Grocery delivery apps to make our lives safer.
Grocery app market is an industry that develops really fast. If you already have Grocery business it’s time to create an app for it. There’s another model of grocery delivery: you can build an app, provide delivery support and collaborate with shops and supermarkets. We prepared some facts which can show you that this business is very profitable.
Look at the statistics
What can we see here?
A little bit more statistics:
In conditions of COVID-19, people need grocery delivery apps to have the opportunity to get products from their favorite online shops.
With a grocery delivery app you can:
  1. Support small grocery shops. Considering this unusual situation, you can assist small grocers to run their business with help of your grocery delivery app. And you can make a great profit from it: many grocery apps deliver food from supermarkets. But you can be original and deal with small shops.
  2. Encourage Keeping Social Distance. You can contribute to stop spreading the viruses by providing users with a secure and easy customer experience.
  3. Reduce the rate of unemployment. Grocery delivery systems provide opportunities for different segments of the population.
  4. Provide fast delivery. Your clients will always be satisfied: usually grocery apps deliver products on the same day.
If you want to start your own grocery delivery business, we’re glad to show you how it works.
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  1. Making an order. First of all, a consumer downloads your grocery delivery app to his phone. It’s not hard to do using AppStore or Google Play. Then he puts products from different sections of your online shop in his virtual basket. He can pay online right in the app: he types his billing information. Then he also fills in the field with a shipping address.
  2. Processing and implementation. Your app processes the order and sends it directly to a shopper (it can be your employee, or contractor: depends on your business system). This person goes to a warehouse of a local shop with the shopping list and buys products.
  3. Delivery. The shopper delivers the order in his own car or gives it to a delivery driver. The driver who delivers orders according to his roadmap arrives at the consumer’s address and gives the order. If the payment wasn’t collected and the consumer wants to pay cash, the driver provides the receipt.
It’s very important to set your grocery delivery app business model. In other words, ways you can make money on it. We revealed four reliable ways:
  1. One of the most popular business model is subscription. Membership fee in many services is about $100 per year. There’s also a monthly option: from $10 to $14. For consumers it’s a good way to save money on delivery. This subscription gives extra benefit of free delivery for orders of a certain price, and other valuable bonuses.
  2. For those who do not often use online grocery delivery, applications introduce a commission and delivery cost. Usually this amount is a certain percentage of the order. Some platforms charge a fixed price. In both cases, it may depend on the order size and location.
  3. The second way to make money in your delivery app is setting higher prices than in local stores or supermarkets to offset delivery expenses. And the smallest margin is going to contribute considerably to sales volume.
  4. You can try to get revenue from sponsors and advertising if you do not want to charge extra for delivery and have a fair price, but still need to make your business profitable. If a consumer doesn’t want to see adverts, offer him an option to purchase a membership.
During the pandemic, people try to leave their homes and appear in public places less and less. Grocery delivery is now one of the key decisions that people make every day. To reduce the number of cases, owners of delivery applications created new functionality.
For example, in 2020, some of the latest and very important innovations were:

Contactless Delivery

If a consumer wants to get the order without personal contact with a delivery driver, he may choose this option in the app and his products will be left at the front door.

Delivery Drones

The same contactless delivery, but imagine that your grocery bag arrives at your place with the drone. This is only the beginning of the era of robotic grocery delivery, but it’s also obvious that it will become a promising business very soon.

Pre-order

When the number of COVID-19 cases increases, the number of essential goods on the shelves of shops begins to decrease significantly. Therefore, now people need to plan the purchase of such goods in advance with the pre-order function in the application.

Priority for seniors

Due to the fact that senior people are at risk and most vulnerable to the virus, their grocery delivery order is given the highest priority.
Priority for seniors
In order for customers to be happy with your delivery application and constantly return for online purchases, it must have the following functionality:

Must-have features

Original features

We made the list of the most popular grocery delivery apps and highlighted their key features:

shipt" tabindex="0">Shipt

Provides same-day delivery 24/7.

instacart" tabindex="0">Instacart

We may compare it with Uber in the grocery delivery market. Your personal shoppers buy products for you and deliver them with their own cars. Instacart allows doing shopping by recipe.

amazon-prime-now" tabindex="0">Amazon Prime Now

In addition to food, you can order household items. In most cases, Amazon Prime Now delivers goods from Amazon, but sometimes you can choose local stores.

peapod" tabindex="0">Peapod

This online store is structured by "aisles". The majority of Peapod's inventory is stored in the company's own storage facilities, you can simply avoid some of the delivery costs if you pick up your own orders.

fresh-direct" tabindex="0">Fresh Direct

It’s a delivery platform that tends to focus on freshness. For many of its products, Fresh Direct provides descriptive information, so you can definitely know how your food reached you.
The success of a mobile application largely depends on the choice of technologies for its development. They predetermine the viability and competitiveness of the app, its functionality, scalability and maintenance complexity.
Mobile platforms: iOS or Android
Database: SQLite, Realm DB, MongoDB,Firebase
Analytics: BigData, Hadoop, Cisco, Spark
Verification system (phone and sms): Twilio, Plivo, Sinch, Nexmo
Payment methods: E-wallets, PayPal, Apple Pay
Push notifications: Push.io
Here at Exceed Team we provide App development at affordable prices.
Contact us to learn more.
The cost of grocery delivery app varies depending on following factors:

Complexity of the App.

In other words, features you want to build in it.

Design and Testing.

For sure, you need to hire a UI/UX designer that creates a user-friendly interface for your clients to get the best customer experience and return over and over again.Testing helps to check such non-functional requirements as performance, security, automation, usability and integration. It's a very important part of launching an app.

Mobile Platforms.

Android, preceded by iOS, is the world's most commonly used smartphone OS. The cost of creating the software for Android or iOS platforms does not vary significantly, although there is a major difference in the screen size, resolution, and hardware capabilities in the Android. But if you want to have a big and diverse audience, you better start developing your grocery delivery app for both mobile platforms.Though, this would have a substantial effect on the budget.

Development Team Size and Region.

The development team's size is directly related to the quantity of work to be done. We can evaluate this by the numbers of hours needed to develop a feature. For example:
Development Step Hours
iOS development 650-850
Android development 600-800
Backend development 350+
Admin panel development 50-70
Testing & Quality Check 50-150
The cost of app development depends greatly on the development team's region. The cheapest price for a developer’s hour is in India and Pakistan: about $30. In Eastern Europe developers get $30 to $100 per hour. The highest price you can pay for app development in the US: $70 to $150.
So the overall average cost of a grocery delivery app will be about $20000+ with developers from India. Eastern Europe developers can offer you a price beginning with $40000+ depending on the complexity of your idea.
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