Start an on-demand grocery delivery business like Instacart
Start an on-demand grocery delivery like Instacart

How to start a grocery delivery business like Instacart?

Saaradha Senthil Kumar
Saaradha Senthil Kumar

Grocery delivery apps are such a hit now since the pandemic, the number of people who love to shop their groceries online is increasing tremendously.

Have you ever considered starting an on-demand grocery delivery business? If not, You should!

In this article, you’ll get to know how to start a grocery delivery business like Instacart and furthermore tiny details that will help you.

So! Let’s get started!

What is an Instacart?

Instacart is an on-demand grocery delivery app that has made a mark in the grocery delivery industry with its amazing features and other attributes. The customers can order groceries from nearby grocery stores using the Instacart app.

How does Instacart work?

Instacart connects grocery stores and users under the same platform. The goods are delivered by the Instacart shoppers (delivery partners), and all these people are managed by the admin of Instacart.

Instacart monetizes its services through pick-up, delivery and service fees, premium membership, advertising, and gift cards.

How is the online grocery delivery market now?

The online grocery delivery business had revenue of $189.91 billion in 2019 and an estimated CAGR of 24.8% is projected in 2020-2027

The U.S., Canada, U.K., Germany, France, China, India, Japan are high scoped countries when it comes to starting an online grocery delivery service.

The online grocery delivery apps like Instacart have 9.6 million users in just 2020 and they suspect a substantial rise of users in the upcoming years.

So, now you know how people feel about ordering groceries online. Now is the right time to start your online grocery delivery business.

Continue to read to unveil more information on how to start a grocery delivery business like Instacart!

Why do you need an Instacart clone to help you in building a grocery delivery business?

Since many entrepreneurs wanted an online grocery delivery app just like Instacart, software development companies took this opportunity to build a high-tech grocery delivery solution.

Instacart clone is an on-demand grocery delivery script that can be customized based on your business needs.

These are some of the reasons why an Instacart clone will help you start an online grocery delivery business.

  • People prefer convenience so they started forgoing the traditional shopping concept.
  • The app-based market is tremendously increasing therefore, having a grocery delivery app could give you an edge with your customers.
  • Since the pandemic, people want to shop safely so having a grocery app like Instacart will help you reach more customers in the days to come.
  • Marketing strategies can be efficiently performed through social media if you have an online presence for your grocery delivery service.

How to build a successful grocery delivery business like Instacart?

1. Learn about the business and revenue model:

An online grocery delivery app functions efficiently in the aggregator business model.

An aggregator business model activates the marketplace by connecting the end-users (users) to the service provider (grocery stores) and the delivery partners who are managed and governed by the admin of the platform.

A commission-based revenue model is one of the best revenue streams for your on-demand delivery business. A commission is collected from the users and the earnings are distributed to the grocery store and the delivery partner by the admin of the platform.

2. Narrow down what tech stack used to build the grocery delivery app:

Using cross-platform technology can be more effective than Native technology. One such exciting cross-platform technology created by Google is Flutter.

You won’t need skilled developers for Android and iOS separately since this technology works on a single code base.

Since it works on a single code base - the development time reduces, the cost of development reduces, and more importantly, the testing time of the output reduces. This means your brand can be launched 3X FASTER THAN the regular timeline.

3. Pick suitable features from the list:

Features and functionalities of the grocery delivery app have to be thoroughly market-researched and induce user-friendliness for the customers while making a booking.

Note: These are some noteworthy features. But there is more!

User app features:

  • Contactless delivery to have a safe delivery experience.
  • Advanced search filters to find categories and pricing ranges.
  • Add-ons can be added to the items while placing an order.
  • Wallet option to make in-app payment.
  • Order notes to give items or package-related instructions to the store.

Delivery partner app features:

  • Payout method, where the delivery partners can add multiple bank accounts to receive earnings promptly.
  • Navigation helps the delivery partner to find the delivery address easily.
  • Online/Offline toggle helps the delivery partner to control their working hours.
  • Earning reports inform the delivery partner of his weekly, monthly, and total earnings.
  • Order management helps the delivery partner to view the current and past orders.

Store web panel features:

  • Store status can be useful for the grocery stores to manage their availability to take orders.
  • Preparation time setting can be set for any particular day and even for specific hours in a day.
  • Modifier groups are add-ons set for the items on the menu by the grocery store owner.
  • Order management helps the store to have an eye on the past and current orders (accept or reject the orders).
  • The payout method helps the store owners to receive their earnings safely via Stripe Connect Onboarding.

Admin web panel features:

  • The promo code management gives the admin the freedom to give discounts to the users on the platform.
  • With the auto-payout feature, the admin can automatically send the payments to the store owners and the delivery partners.
  • The admin can delegate roles and privileges to the sub-admins to manage the business effectively.
  • The admin can see the reviews given by the users to the delivery partners and vice versa.
  • The admin can view their earnings and the overdraft on each booking.

How can a ready-made solution help you start a business like Instacart?

Developing a solution from scratch has its perks but have you considered going with a ready-made solution?

Let’s discuss the perks of getting a ready-made grocery delivery solution for your business!

  • A ready-made solution built using cross-platform technology can reduce the development and testing time, and cost of development.
  • You don’t have to hire skilled developers here and there. They all are in one place to help you with your app development.
  • They concentrate on not only delivering the product but are ready to support you through app submission and installation for FREE.
  • Any updates regarding the development process come promptly via any communication mode you prefer!
  • Every question on the product before, during, and after-sales is answered by a dedicated technical support team.

Not so sure that you’ll be receiving all these advantages in a scratch solution development team.

How much does it cost to develop a grocery delivery app like Instacart?

The solution you develop from scratch takes a lot of time and money as we discussed already. But let us discuss numbers now!

Usually, it takes from $20,000 to $70,000 to build an on-demand solution from scratch with intense labor charges of $40 per hour. Which is neither economical nor worth it.

Now, if you choose a white-labeled, 100% customizable, and the scalable, ready-made solution you’ll be paying a maximum of $5000.

Why is the difference in amount so HUGE?

  • When you use a cross-platform technology (like Flutter), the cost aspect differs as only a single code is deployed to build apps for two platforms - Android and iOS.
  • In a ready-made solution, you’ll just have to white-label the product according to your business needs.

These are some of the things that an entrepreneur should be knowing when it comes to starting a grocery delivery business like Instacart.

We designed WooberlyGrocery, a ready-made, 100% customizable, and scalable solution built using Flutter - a robust on-demand grocery delivery app.

We are far more economical than others with no compromise on the quality of the output!

Check out our FREE demo to know more about us!

If you have any questions regarding our product, please don’t hesitate to contact us via WhatsApp or drop us an email at support@radicalstart.com

We are here to help & support your grocery delivery business venture as smoothly as possible!

Marketplace business ideas

Saaradha Senthil Kumar

I work as a content writer at RentALLScript. Assisting aspiring entrepreneurs to digitize their business through detailed constructed blogs on booming business ideas and technology.