How much does it cost to develop an On-Demand Grocery Delivery App like Instacart/BigBasket?



On Demand Grocery App Development

Posted on September 10, 2020 by Apeksha Khanna | Blog | Total Hits:

Want to make an app like InstaCart and know its development cost? Then, this article is for you.

The On-Demand App Economy is growing with each passing day and has become an important part of the organizations and startups who are seeking ways to expand their business. Due to the quickest growth rate and various business expansion options, It has also gained investors’ interest over time.

A large number of leading companies have turned the business according to the modern trends and lifestyles to fulfil the consumer’s needs by adopting digital transformation using an on-demand app.

There are various on-demand categories but one of the most talked-about category is grocery delivery. And let’s face it - Grocery Apps have made our life easy and saved our time spent on visiting stores for grocery shopping.

Grocery delivery platforms have connected users with local stores for home delivery. In June 2020, online Grocery sales hit a record of $7.2B4. As shoppers are buying groceries online often, this trend is not going to slow down any time soon.

One of the leading examples of Grocery delivery platform is Instacart.

Instacart delivers groceries and household essentials from stores and offers a premade meal delivery. Instacart experienced explosive growth in 2017, expanding to more than 150 new markets, starting operations in Canada, and striking deals with dozens of retail chains. In the latest funding round, Instacart raised $200 million at a valuation of $4.2 billion.

Instacart saw its app downloads grow by over 200 per cent due to the recent outbreak of COVID. As people are adopting its services the trend is going to stay even after COVID.

Seeing the Instacart growth, many grocery store leaders are also adopting Grocery On-Demand App Development Business model to thrive in the industry.

Adaptions in the Grocery Industry

The whole grocery industry is seeing reformations in the business model.

● Major retail corporations and convenience stores are partnering with grocery apps to drive more reach and access mobile-first delivery solutions.

● Traditional grocery players are developing their own apps.

So, your idea around grocery delivery app and your plans for its development and execution is absolutely going to drive your business.

So to help you build grocery delivery app like Instacart at a friendly cost, we’ve put together this complete factors to grocery delivery app development in our article.

We’ll be covering:

Top Industry Leaders

Like InstaCart, there are other grocery leading industry players Amazon Fresh, Amazon Pantry, Grofers, and Big Basket who have a distinctive yet similar business model to thrive in the industry. All of these apps are responsive and basic features in common.

However, in this article, we will be taking Instacart to discuss grocery delivery app development factors that contribute to cost.

1. How InstaCart Works

Let’s first look at how InstaCart process enables customers to place an order easily on the app for grocery delivery.

Grocery app development like Instacart
  1. OnBoarding Users - Users signup on the app and choose local stores from where they want to shop.

  2. Search and Placing an Order - Users make product searches by specific items, trending items or by product department. Users select and add products in the cart to place an order. The order includes delivery instructions such as entrygate information and any markers on a customer’s home that can help the personal shopper find the best entrance. The user pays for their order through the mobile app.

  3. Order Processing - Instacart sends a message to a shopper of the new order that includes a shopping list alongside detailed delivery instructions. The shopper goes to the store and picks up all the items on the user’s shopping list.

  4. Grocery Delivery - The shopper delivers the order to the user, who checks that everything has been delivered as provided in the list.

So, to provide high-quality service through the app, Instacart supports three segments i.e, Consumers, shoppers and stores. The App has three different User Interfaces to support the smooth experience of the app.

2. App User Interfaces and its Features

User Interfaces and its Features contributes major to the Grocery app development cost.

Three User Interfaces:

1. Consumers:

Consumers make searches and places orders through the main app place orders through the main app. The goal of this app is to provide a smooth experience through the search, order and grocery payment sales funnel. The consumers who use the grocery app is for its convenience of buying groceries. To attract and engage customers to the platform, the app must have responsive UI on Product Search and Order page. The grocery app development team ensure to build an app that makes ordering Quick, uninterrupted, secure and smooth.

User Registration: Quick Login and Sign Up option to make the onboarding process smooth. Integrate social media or other third-party APIs to make the registration process easier. Social media integration helps users to log in to the app without the need to remember passwords. The app can also allow users for guest checkout to ask for user details at the later stage.

Profile Creation: This allows your users to create a profile, update their contact details, add payment methods, and manage their profiles for the personalized in-app experience. This method helps to save the user details for next quick checkouts.

Product Categorization: The product Categorization is crucial for the app to help users find the desired product easily. The Product Categorization or department lets users find products they are looking for and also helps business to promote alternative products in the category, the user may not have thought to buy earlier.

Like Instacart has listed grocery stores in the app. Each store should have all the products categorized properly.

Search Bar: This option is one of the most used features by users to find a particular product in the app. You must include a filter in your grocery app search to make sorting all the products a lot more convenient.

Shopping Cart: Add to Cart Option at each product or category page to let add all the products in their cart and once they are done with their grocery shopping, they can easily check-out. The Shopping Cart should be placed in the app where it is visible to the customer throughout the search and order placement process. This lets them know the count of products they have added to the app.

Multiple Payment Options: Giving more than one payment option is always a good idea. You must integrate various modes of payment for users to be able to pay easily with the method they are using.

You can also ask Grocery delivery app developers to integrate an e-wallet in your app. The e-wallet integration in the app makes the check-out process quick and effortless as users can pre-store their cash in that wallet and make prepaid orders.

Real-time Tracking: This is one of the most engaging features in almost all on-demand grocery apps. This feature not only keeps the customers updated about their order processing but is also great for user engagement.

Selection of Time-slot: Giving an option to your users for selecting the time-slot for delivery is a great way to allow to pick delivery at the time when they are available. Instacart supports drop at the door-step option to let the delivery guy drop the items when the buyer is not available at home.

Customer Support: This is important as your customers should be able to reach you whenever they face any issue. This could be related to order cancellation, payment refund, double payments, product replacements issues. In-app customer support let users take hel instantly.

2. Shoppers:

Shoppers, or delivery workers, have a separate app where they can see order details and keep an eye on their income. In contrast with Shipt, the Instacart shopper app can’t be downloaded directly through app markets. To download the app, a prospective shopper needs to enter their phone number in a special form on the website. After that, Instacart sends a link to download the Shopper app.

Delivery Requests: Your delivery partners should have an option to either accept or reject the order based on the customer location or time to deliver the order.

Delivery Notifications: This involves notifying the delivery partners on any new order received. They will get an in-app notification indicating the same with all the order and delivery details.

Location Tracking: Drivers will be able to track the customer delivery location easily to avoid any delay while finding the user’s location. This involves GPS integration to locate users’ location.

Delivery Time Slots: Drivers would be notified with the delivery time-slots selected by the users so that they can adjust delivery between time slots and deliver the order on time-slots selected by users.

Payments: Delivery partners would also have a detail of the invoices of their complete earning to avoid any payment related dispute. They can further make a refund of payment for the products out of stock which was listed in the app.

Customer Support: Just like your users, your drivers would have the facility of contacting you in case they face any issues delivering the order.

3. Stores

Instacart has established partnerships with major retailers and small grocery shops in various cities. By establishing partnerships with delivery companies, shop owners get brand visibility and additional income.

Dashboard: A dashboard that can track and manage all the activities of a grocery store is important for smooth business functioning.

User Management: Admin panel would have the right to manage users of the app. Owners can coordinate and communicate with all the consumers that are engaged to their grocery app.

Add Products: Admin should be able to keep the grocery stock updated by adding the new items and removing the ones that have gone out of stock.

Assign Order: To ensure that all orders are executed in a systematic manner this feature is very important. This feature allows admin to assign new orders to the concerned person.

Manage Payments: Admin should be able to access all the payment details related to the orders made. Payments received or refunded can be easily seen and generated in the panel.

Create Codes: Admin should be able to create new offers and promo codes for the users and send notifications to the users about the offer.

3. Other Aspects that Contribute to the cost are

UI/UX design: UI UX design is the face of the app. It showcases the app looks and experience. The better the UIUX, the more customers tuned to your app. The UIUX involves building smooth onboarding design, allowing user in-app input, making checkout process short and ensuring app security. All these factors when taken care of in User purchase funnel offers a rich experience to users. Read more about enhancing rich App Experiences.

Development Methodology: You want a basic design with MVP (you input only the features that you think are the most important and unique.), or Polished design with fully developing the app at once ( want to launch a full-furnished app in the market that has all features you listed)

Security: If your app ever leaks private data, then you’re at risk of losing a large portion of your audience. So you need Admin and client data security. This may involve adding paid third-party integrations. This adds to the cost.

Quality Assurance: Once the app is ready, it goes through the quality test to ensure the app is suitable for the audience. This involves bugs fixing, performance testing, and more.

4. What is the cost to develop a grocery delivery app like Instacart

When you create an app like InstaCart/BigBasket, you develop three apps: One for the customers, One for the Delivery Partners/ Shoppers, and One for the Grocery Store.

So, when you determine the cost of InstaCart clone, you pay for these services –

Mobile App Design

Mobile and Web App Development

Backend Development

Quality Assurance

Product Management Panel

Now, the cost of Grocery app development depends on the hours it takes to design, develop and test the app for launch on the App Store. The development cost in the US, Europe ranges between $100-$250. While hiring On-Demand App Developers from India costs you less than any countries.

We as a Grocery delivery app development company charge $20 - $30 per hour. The cost of a basic to medium functionality (takes 6 months to develop) on-demand grocery app development would come somewhere around $25,000 - $40,000 and a complex app would fall in the range of $100,000.

To get Clear estimates of Grocery App Development Book a Free Consultation

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