Hello! If you are a dream-filled entrepreneur planning to introduce an online grocery store, this blog will be of great help to you. The blog will explain the various business models employed in grocery delivery, the successful players in the grocery delivery business, and the app development idea. Firstly, let us start with the business models so that you can choose the one that fits your finance.
Business models in the grocery delivery business
- Marketplace model
In the marketplace model, you have to look after the delivery by employing drivers. The assigned drivers will collect the groceries from the stores and deliver them to customers.
- Aggregator model
In the aggregator model, you will establish tie-ups with local grocery stores. Customers will select the local store and order the groceries. Once the grocery order is ready, the Instacart Clone app will direct the driver to pick the order and deliver it to customers.
- Grocery chain model
Grocery chains are where you will collaborate with several grocery stores and supply groceries to users. One fine example of the grocery chain model is Walmart.
In the retailer model, you will accept only bulk orders from retailers. A retailer will order groceries through your app. Based on the order request, you will send out your driver to deliver their shops’ orders.
Successful market players in the online grocery business
- Amazon Fresh
As we all know, AmazonFresh is a subsidiary company of Amazon that was founded in 2017. The company guarantees delivery of groceries within the same day. The company has more than 500,000 product lines across different countries. The company also offers a 30-day free trial for users.
Shipt is one of the major players in the grocery delivery business. The company was founded in 2014. Later in 2017, the company was acquired by Target Corporation for 550 million USD. The company offers a same-day delivery service and has more than 3000 product lines. The company is spread across 250 metro cities in and around the US. The company has a monthly subscription plan of 99$.
Peapod is one of the oldest online grocery stores in the US. The company provides a range of grocery lines, including dairy products, fisheries, fruits, and vegetables from local farms. Peapod spreads out its businesses in New Jersey, Washington, Delaware, Pennsylvania, and New York.
As promised earlier, we shall see about the grocery app development. One of the popular grocery app development ideas is the Instacart clone. The clone model is developed by taking inspiration from the Instacart app. The clone app development is definitely a benefit, as it will save time and money. The clone app development is an already built app on which you can do the personalizations.
Working Of The Instacart Clone
The User App
Step 1: Your customer will log in to the app and fill in the registration details
Step 2: Then, the customer will get a list of grocery stores, and he/she can start purchasing groceries by selecting the store.
Step 3: The customer can use the in-app filter option to shortlist the grocery items.
Step 4: The customer will add the selected items to the cart and make the payment. While checking out, the customer can opt either for immediate checkout or schedule the checkout.
Step 5: If preferred, the customer can give reviews regarding their grocery shopping experience.
The Store App
Step 1: The store owner or the manager will get registered by inputting the needed details.
Step 2: The store will receive the order notification when a customer selects their store.
Step 3: Based on the availability, the Instacart Clone App will process the order based on seniority and will update once the order gets packed.
Step 4: Once the order gets ready for dispatch, the driver will receive the request.
The Delivery Person App
Step 1: The delivery partner will log in to the grocery app by filling in the details.
Step 2: Whenever a customer places an order, the delivery person will have to look after the dispatch process based on his/her availability.
Step 3: If the delivery person is open to take the delivery, he/she will visit the concerned store and pick up the parcel.
Step 4: Based on the customer’s location details and the in-app navigation feature, the delivery person will go to the customer’s place.
Noteworthy Features Of The Instacart Clone
Let users have an up-to-date knowledge about the location of their grocery orders. After placing the order, users can just tap the tracking feature and know the location.
The Instacart Clone app’s scheduling feature will come in as a beneficial feature as they are free to choose a date for delivery.
Stores and delivery persons can make use of the availability toggle button to show their status. Orders will be assigned to them only if their status is available.
The Revenue Model Of Grocery Business
Commission – You can deduct commission charges from stores for each order placed via the app.
Delivery charges – Grocery delivery business has an obvious income from delivery charges.
Subscription plans – As we saw earlier on how Shipt has a subscription plan, you can impose subscription plans on a monthly, quarterly, or yearly basis.
Trend Prevailing In Grocery Delivery Business
- Delivery through drones
- Store pick-up
- Contactless delivery
One of the top on-demand services is the Instacart Clone delivery business. You can make profits by adapting any of the business models. Make sure your business has certain Unique Selling Propositions so that you can highlight yours from your competitors.