FoodTech mobile apps: What is important to know about?
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Grocery delivery app development
Oct 30, 2024
14 minutes
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The global market for grocery delivery services is expected to reach $770.9 billion by 2024, growing at a CAGR of 11.8% between 2024 and 2029. This will result in a market volume of $1,347 billion by 2029. This increase is linked to changes in consumer behaviour, as more people choose to shop online for their groceries. By 2029, the global audience in this market is expected to reach 2,215 million users.
Anyone selling products online can benefit from the industry's growth. But those who are actively thinking about grocery delivery app development have the most to gain. In this article we’ll tell how to get your piece of the pie and learn more about:
- Why are grocery delivery apps so popular?
- Who are the industry leaders and what you can get from them?
- What features are necessary for launching a competitive grocery delivery app?
- What are the best business models for grocery delivery apps?
- How to build a grocery delivery app?
The tips and solutions mentioned in this article are the result of real-world experience in developing product delivery solutions that have gained market share and continue to grow. You can find examples of successful apps in our portfolio.
What is a grocery delivery app
By grocery delivery app, we mean digital services that allow users to place orders remotely from anywhere, at any time. Such products began with basic functionality: it was enough to browse the product catalogue, add items to the shopping basket, select the time and date of delivery and the payment method. Now, technology allows retailers to create a truly immersive and realistic experience when interacting with products. From synchronising with the user's geolocation for the fastest delivery, to AR clothing and footwear try-ons.
Popular grocery delivery apps
Talking about the US, 28% of American adults shop online at least once per month. So who's driving the industry? The most advanced grocery delivery app solution are provided by:
- Walmart – representing 28.4% of the US online grocery market share, consumers will spend an estimated $45.71 billion in 2023;
- Amazon – representing 22% of the US online grocery market share, consumers will spend an estimated $35.46 billion in 2023;
- Kroger – representing 9,9% of the US online grocery market share, consumers will spend an estimated 15.96 billion in 2023.
In 2023, Tesco's iOS app, Tesco Groceries, was the most popular grocery shopping app in the UK, with more than 12.6 million downloads. Sainsbury's Groceries came in second with 1 million downloads and Gopuff came in third with 409,000 downloads.
And if you think the niche is already occupied by Enterprise, here are some examples of young and promising grocery delivery startups from 2023-2024 in Europe and the US:
- Rapidly (US) – a Chicago-based platform specialising in South Asian grocery and food delivery, connecting customers with local shops and restaurants. It offers a diverse range of products, from groceries to cultural items, and uses efficient logistics to ensure freshness and timely delivery. The platform has successfully raised a total of $5.3 million, including $4 million in a seed round in July 2022.
- Zepto (US) – an India-based company that is rapidly expanding its presence in international markets, focuses on providing ultra-fast grocery delivery within 10 minutes through a network of dark stores. This approach enables rapid order fulfilment. In 2024, Zepto successfully raised $665 million in its Series F funding round, valuing the company at $3.6 billion.
- Manna Drone Delivery (Ireland, USA) – an innovative drone-based delivery service for suburban and rural communities. Manna drones carry groceries, takeaways and even medical supplies, providing a sustainable and fast alternative to traditional road-based logistics. Raised $30.2 million.
Grocery delivery business software trends 2024
Here are the key trends to consider for on-demand grocery delivery app development.
Personalised Shopping Experiences
With AI and machine learning, there are countless opportunities to improve grocery app development. The most common is related to personalisation of retailer offers. By analysing customer data, apps can offer tailored product recommendations, promotions, and shopping lists. Instacart uses this technology to recommend items based on previous purchases. And Amazon Fresh provides personalised discounts to increase customer satisfaction and retention.
Recognising that different users have different spending power, grocery delivery apps are now offering subscription-based models that offer perks such as free delivery, exclusive discounts and faster delivery windows for a fixed monthly or annual fee. Like Amazon Prime, you can get free grocery delivery within certain time windows and access to members-only deals.
Customer Support and Chatbots
To provide fast customer support, grocery website development requires the integration of AI-powered chatbots that can handle queries, solve problems and help customers navigate the app or place orders. Tesco, for example, uses natural language processing (NLP) technology to provide better service with direct answers. This reduces the need for human intervention and speeds up response times.
Another NLP-related trend is the integration of voice assistants, such as Alexa and Google Assistant, to simplify the shopping process. Walmart customers can use voice commands to add items to their shopping carts and reorder products without manual input.
AR (Augmented Reality) for Product Visualisation
Augmented Reality (AR) technology allows customers to view products in 3D or see how an item will look in their kitchen or pantry. This feature is particularly useful for specialty grocery items such as fresh produce or meal kits. IKEA uses AR in its app to allow customers to visualise furniture in their home. In grocery, AR can be used to show details of food packaging or nutritional information.
Learn more about the use of AI & Machine learning in grocery app development here.
Quick Commerce
The modern user no longer wants to wait in a context where they can choose between different grocery delivery apps. The average delivery time varies between 10 and 30 minutes, so retailers are operating from smaller, strategically placed warehouses, called 'dark stores', and using advanced route optimisation. The pioneers of this approach were Gorillas and Getir, who are now deploying micro-fulfilment centres in urban areas across Europe and the US to enable ultra-fast grocery delivery.
Sustainability and Inventory management
As sustainability becomes a priority for consumers, grocery app solutions are focusing on eco-friendly practices like reducing plastic waste and carbon footprint. Ocado, a UK-based grocery delivery service, uses electric delivery vans and offers customers to return plastic bags during delivery for recycling.
AI and machine learning models also ensure stock availability, reducing spoilage and overstocking. FreshDirect, for example, can predict demand based on weather patterns, local events and seasonal trends.
Learn how to enhance your supply chain here.
What business models to choose for grocery delivery app
Globally we can divide grocery delivery apps to the two main categories:
- The one-store model – where you can create an online grocery app for your own store and sell products from it. The size and location of the store doesn't matter, as you can start in a specific area and then expand across the country or even beyond (this is how Walmart started before it became a retail giant);
- The aggregator model – alternatively, you can partner with other sellers and expand your product range by offering their products for your commission. The app acts as a hub, connecting customers and multiple merchants. This is how DoorDash and Instacart are making their mark on the market.
After choosing the type of on-demand grocery app development, you should think about how to provide customers with easy access to shop for products. You can use any of the following business models.
Inventory
Use secondary market research data that skips costly steps that do not affect potential profits. This kind of insight can be found in statistics on the costs of certain processes: human resource management, waste management, downtime.
✍ Example: Amazon Fresh uses this model by managing its own grocery inventory.
Marketplace
The marketplace platform facilitates the connection between consumers and local grocery stores and retailers. The app acts as an intermediary, providing a list of products from different stores without holding inventory. Orders are processed by the partner stores and the app generates revenue through commissions or fees.
And here you’ll find the article written by our CEO Max Bantsevich, where you'll find the full development cycle of the marketplace, as it should be, based on our studious experience. And the top three features to improve customer engagement with your food delivery app.
✍ Example: Instacart operates with this model, partnering with local stores to deliver groceries.
Hybrid Model
The hybrid approach combines aspects of both the inventory and marketplace approaches. The application manages some of its own inventory, typically for popular items or expedited deliveries, while at the same time working with local retailers to broaden its product offering. This approach offers adaptability, allowing the application to strike a balance between control and flexibility.
✍ Example: Walmart's grocery delivery service, which uses its own inventory for some items and partners with other retailers.
Let's choose the model that suits you best! Book a consultation
Olga V.
Business Manager
Benefits of Building Custom Grocery Delivery Apps
Grocery store website and app development benefits to both the store and the customer.
Top features for grocery app development
To understand grocery app development cost you should start with the complexity of the future product logic, feature set and scalability. Keep in mind that any delivery application has two main layers – the admin panel and the customer panel. In addition, you can provide a panel for partner stores (if you are a marketplace or aggregator). And also a panel for couriers.
Here's the required feature set for each part.
Admin panel
Simple feature set
- Inventory Management – ability to monitor stock levels, analyse sales patterns, and automatically replenish products to ensure efficient inventory management;
- Order Processing – reflection of order processing through a user-friendly dashboard that provides real-time order tracking, manages order statuses, and automates delivery notifications.
For faster development, use our own solution called Admiral. It's free to use, comes with a ready-made set of interface elements, but retains the ability to customise them as required.
The story of how we created Admiral
To date, Admiral has over 4,000 downloads and has already crossed the 100 star mark. We get cool feedback from developers who use our solution. Clients, in whose projects we have used Admiral, are also happy with the results.
Medium features
- Performance Analytics – enables to analyse key performance metrics such as sales, inventory levels and customer satisfaction, spot patterns and make data-driven decisions.
- Customer Communication Tools – allow to monitor product data, visuals, and descriptions to generate precise in-app reports and offer insightful order analysis.
Advanced features
- Retention Tools – customised push notifications with a recall to complete purchases if the user has left the app, reminders of products they like, exclusive temporary offers with increased discounts;
- Delivery Route Optimisation – calculation of the most efficient delivery routes with the maximum amount of sales in the minimum amount of time;
- Loyalty Programs – collects all the data on each user's purchases and classifies them into levels, each of which offers different options: bonus points, increased discounts, gifts from partner brands. Information on payments made through the loyalty programme is also reflected in the accounting department with the necessary detail. More ideas you can find in this article.
Customer panel
There are few levels of complexity here which influence the grocery app development cost.
Simple feature set
- Sign-up – provide multiple options for authorisation or registration – via contact details (email or phone number), social media and a unique login password.
- Catalogue – accompany each item with a description, a photo, the seller's details (if you are an aggregator) and the current price. Group similar product categories using filters for easy searching.
- Payment Options – add multiple payments such as most common options like credit and debit cards, and don’t forget to add ApplePay/GooglePay and other variants;
- Add To the Cart – during the checkout process, users can flexibly modify the products in the shopping cart by changing the quantity or other parameters, add several products at once, and save the favourites.
- Delivery Planner – users can select the most appropriate time slots, pick-up zones and other delivery conditions.
Check out our guidance for building cart and authorization in online-store.
Medium features
- Order Tracking – check out the status of the order and the progress of its delivery from the warehouse until the order reaches their doorstep.
- Personal Offers – interaction with the loyalty programme on the other side, where the user can track the number of bonus points, the size of the discount and receive exclusive offers for new orders.
- Customer Support – ability to clarify details of purchasing via in-app chat with.
Advanced features
- Third-party Integrations – connect third-party services to the app, such as adding delivery reminders to the calendar, or using nutritional information from ordered products for diet apps, to add value for users.
In average the development cost and timeline for launching the grocery delivery app of each type will be the following:
- Simple – from $25 000;
- Medium – from $40 000;
- Advanced – from $55 000.
If you're not ready for complicated grocery delivery app development you can start with WebApps – simple cross-platform solutions that you can offer to customers within messengers like Telegram, WhatsApp and others. It can also serve as an additional sales channel. More details here.
Describe the features you need in your app. And we'll give you a timeline and cost
Olga V.
Business Manager
Product launch on messenger apps: Telegram web app opportunities for businesses
How web applications in messenger apps can help businesses to generate leads, promote products and services, and test new features and services. Explore the key benefits of this technology with the Telegram Web Apps.
Steps for Grocery Delivery App Development
Follow our guide to learn how to develop a grocery delivery app.
Market Research & Idea Validation
Start by conducting secondary market research to determine where you are in the market and what the trends are in grocery app development. You can use free reports from Statista, World Bank Data, IBISWorld, Gartner and other sources. And don't forget to study existing grocery delivery apps such as Instacart, Walmart and Amazon Fresh to understand features, pricing models and pain points.
Here is an example of our lead front-end developer, Artur Valokhin, comparing two of the largest online stores in the US – Instacart and Freshdirect. He evaluated the ordering process by looking at availability, search options, session handling, UX/UI, product card and other features. Read Artur’s article to find not only insights, but gaps you can improve in your own grocery delivery app.
Grocery Ecommerce: How to Run a Successful Online Store. Instacart and Freshdirect example
In this article, we decided to compare two American services that provide food delivery services. In terms of their model, they are completely different, but this is not so important from the point of view of the “convenience” of the online trading platform.
Then move on primary market research and its methods for defining your target audience, their preferences and specific needs. Here are some tailored solutions you can offer to the following user groups:
- Urban areas – Ultra-fast delivery
- Niche groceries – Personalised grocery lists
- Organic food shoppers – Eco-friendly options
Plan Functionalities & UI/UX
First, build the user flow to create the necessary features. Think like a customer:
- What do you want to see on the main page?
- How is the product search organised?
- What are the different payment options?
- Do you need order confirmation and order tracking?
When creating an admin dashboard, consider features such as order management, customer analytics, inventory control and delivery scheduling.
Once you have built the MVP or created a design prototype, you can also test it through surveys, A/B testing and while using other types of market research to find gaps in functionality. Sketch out the user interface (UI) using wireframing tools such as Figma or Sketch to visualise the customer journey. Prioritise an intuitive flow for adding items to the cart, checking out, and tracking deliveries. Make sure the app is simple and easy to navigate.
Think about:
- Delivery processes – route optimisation, real-time GPS tracking, delivery status updates and revenue reporting.
- Monetisation models – subscription services, delivery fees or partnerships with local grocery stores.
Choose a Tech Stack
According to the stats, 50% of smartphone users are more likely to use a company or brand’s mobile site when browsing or shopping on a smartphone because they don’t want to download an app. That’s why you should think about making your grocery delivery business software cross-platforming. It makes it easy to implement your product across the entire business logic and connect to different types of devices with different operating systems.
Our main frontend development stack is React Native. The reasons why we choose it and the benefits it brings to our clients' projects can be found here.
For backend development our team uses such robust frameworks like Node.js, for scalable APIs and real-time inventory updates. Choose scalable databases like MySQL, or PostgreSQL to handle user, order, and inventory data.
Having trouble choosing the right stack? Let us be your technical partner!
Such tech approaches helps us to build successful marketplace such as:
- Yapoki – fast-growing grocery delivery with complex catalogue, multiple ordering options and real-time delivery streaming;
- Beerpoint – mobile application for beverage and snack retailer in a chain of 189 stores;
- Fashion House – marketplace for retailers with 1m+ users.
Develop & Test
First, develop core functionality such as user registration, grocery catalogue management and shopping cart functionality. Then integrate existing software with inventory management systems, delivery service APIs and payment gateways.
The necessary step before going to market is quality assurance. Let QA test your grocery delivery app for bugs, security vulnerabilities and performance issues. Conduct cross-device testing (mobile, web) to ensure compatibility and a smooth user experience.
Launch & Market the App
Once you have finished testing and fixing bugs, the only thing left to do is to submit the app to the Google Play Store and the Apple App Store. Make sure you follow their guidelines and have appropriate marketing materials such as app descriptions and screenshots.
Remember that even the most powerful grocery delivery app will not be successful without digital marketing campaigns to promote your product through social media, influencer partnerships and email marketing to attract early users. What's more, any software needs technical support and regular improvements. Some of these may be based on reviews and feedback from early users. Others will be the result of following emerging trends (such as sustainability features or fast commerce capabilities). Every time you add more stores, delivery areas and partners, you're scaling. And that scaling may require some changes to the code.
That's why we stay in touch with our customers, ready to fix any bugs and improve the performance of their delivery applications.
FAQ
How much does it cost to build a grocery delivery app?
Developing grocery delivery apps can range from $25 000-$55 000. The wide variation in the price range is attributable to the features, intricacy, platform, geographical location, regulatory requirements, and the development team.
How long does it take to develop a grocery delivery app?
The timeline for developing a grocery delivery app can vary based on complexity, features, and customization. A basic app with standard features can take 3-6 months, while more advanced apps with personalised experiences, real-time tracking, and AI recommendations may take 6-12 months or longer.
What are the essential features for a grocery delivery app?
Key features include:
- User registration and profiles
- Product search and categories
- Shopping cart and checkout options
- Real-time order tracking
- Multiple payment gateways (credit cards, digital wallets, etc.)
- Notifications and alerts
- Delivery scheduling and slot selection
- Customer reviews and ratings
How do grocery apps make money?
Grocery apps generate revenue through:
- Delivery fees
- Subscription models
- Service fees for partner grocery stores
- In-app ads and featured listings for grocery stores or products
- Product price premiums or commissions from partner stores
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