Just a few years back, online shopping was a luxury that only a handful of people could afford, but it has evolved to become a necessity today. People are always on the go and depend on mobile apps to get their essential things done with a few simple taps and swipes. Several on-demand service apps in the market are witnessing an upsurge in their user engagement and revenue. The millennial generation loves on-demand service apps for the convenience of getting essentials delivered at their doorsteps. Suppose you are an enthusiastic entrepreneur keen on starting a business in the on-demand grocery delivery sector. In that case, this article is for you as it discusses the market scope, monetary streams, business models, and much more.
Scope of grocery delivery apps in the current market:
Business analysts have predicted that the on-demand grocery delivery market will exceed a total value of $30 billion in sales by 2021. The consumers’ shopping patterns clearly indicate that the industry is marching towards its peak. There are many challenges in developing an Instacart clone app, like partnering with retailers, managing the inventory, overlooking the delivery fleet, and more. Although it looks like an impossible task, entrepreneurs can get fruitful results in their business with proper guidance from industry experts and strategic planning. Here are some reasons why modern consumers prefer to shop online for groceries.
It takes time for people to travel forth and back to get groceries. At times, they would stand in long queues at the billing section. It is estimated that an average American spends 17 hours in a year looking for parking space, and they collectively pay about $73 billion in a year for the same. But with an app like Instacart, they will be able to place orders within 5 mins and need not have to face traffic hurdles and other issues.
These apps are aimed at offering convenient grocery deliveries for working-class people so that their schedule goes undisturbed. The users can place grocery orders from anywhere, anytime, with a few taps and swipes on their smartphone.
Flexible delivery options:
Users need not have to wait for groceries to be delivered as they can schedule their deliveries according to their availability. The delivery executives will arrive at the customers’ doorstep on time.
The workflow of an on-demand grocery delivery app like Instacart:
- The customers should register their accounts on the platform and add essential details to their profiles to place orders.
- The customer will be promoted to type the complete address and pinpoint the exact delivery location.
- They will get a list of stores offering deliveries in their vicinity.
- The customers can search for their required products and apply filters to get precise results.
- Users can save products to their virtual carts and review them before checking out.
- The customers can choose for scheduled deliveries if required.
- After reviewing the products, customers can choose a mode of payment.
- The groceries will be delivered to the customers’ doorstep on time.
How to build an Instacart clone app successfully:
Start with choosing the ideal business model:
The first step in developing your white label Instacart clone script is choosing the ideal business model. Here are the business models in this niche; entrepreneurs can select the perfect model based on their requirements.
The Aggregator model will be the perfect choice for entrepreneurs who do not own a brick and mortar store but still have the vision to pursue in the grocery delivery business. The app offers opportunities for local stores to tie up with the app to maximize their sales and profit. The customers can quickly get groceries delivered from their nearest supermarkets by delivery executives.
The marketplace model will demand entrepreneurs to hire their own fleet of delivery executives. They will be responsible for delivering groceries to the customers’ doorstep on time.
Walmart is following the grocery chain model as its own stores all over the country. Entrepreneurs with grocery chains can implement this model to streamline maximum benefits.
Just as the name suggests, this model will be the perfect option for entrepreneurs who own only one supermarket. It can be an effective way to serve potential customers in their locality, and regular customers can get a convenient way to shop. The store owners will manage the business operations, and so customers will get on on-time deliveries.
The retailer’s model is different from other business models as it focuses on delivering bulk orders according to the customers’ requirements. Individual customers cannot place orders on these platforms as these apps are aimed at bulk orders from enterprises.
Monetization streams in the on-demand grocery delivery business:
The ultimate goal of every business is to maximize its revenue and to keep a steady flow in the long run. Having a properly planned monetization strategy ensures ROI in the shortest turnaround time and also pushes the business to reach new heights. Here are the monetization streams that are proven to work with the modern consumers of this niche.
Entrepreneurs can get a steady flow of income with commission fees. They can charge the supermarkets for every order customers places with them from the app. The commission fee strategy blends well with the aggregator model.
Entrepreneurs can charge the customers’ delivery fee for every order, and the price should be determined based on the distance to the delivery location.
Entrepreneurs can run advertisements on their platforms for other brands once it gets popular in the market. They can have their custom pricing strategy and can charge based on the ad’s content and duration.
Why should you have a Unique Value Proposition:
Unique Value Proposition makes a business stand apart from the competition and makes customers look up to it. Here is how you can offer exceptional services for your custom
You can provide unique services like same-day deliveries to differentiate yourself from other providers. Sometimes people will also expect in-store pickups.
Flexible consolation policies:
Sometimes customers might cancel their orders due to unforeseen circumstances, and they will expect not to get charged for it. Ensure that you frame a fair cancellation policy for your services, and your customers go through it thoroughly. You can set a time limit for customers to cancel their order without being charged.
Seller brand building:
If you choose to go with the aggregator model, then you should focus on optimizing your app for the sellers. Ensure that your app makes things easier for the sellers with its innovative functionalities and features.
The onset of the COVID-19 pandemic has stirred up the market as people are forced to stay indoors. People have become more health-conscious and have started to prefer home-cooked meals over fast-food chains. Since the market prospects are high, now would be the perfect time to launch your on-demand grocery delivery app. Contact our app development team to get your platform running in the mainstream market within the shortest turnaround time.