Why Invest in a Grocery Delivery App in 2022: The One-Stop Guide

The online grocery delivery services market share is expected to increase by USD 800.00 billion from 2020 to 2025, and the market’s growth momentum will accelerate at a CAGR of 25.25%.

But, what makes the grocery delivery services so popular?

US grocery delivery penetration

For Customers:

Why stand in a long queue at the supermarket if you can get the groceries delivered at the tap of a button on your mobile?

What They Get:

  • Convenience
  • Better Shopping Experience
  • Save Costs (Time and Travel)
  • Access to Order History
  • Facility to Repeat Orders

For App Owners:

Why incur stocking and rental charges when inventory can be directly procured from vendors in the grocery business?

What They Get:

  • Cost Savings (Advertising, Rent, Insurance)
  • Better Client Service
  • Fully Accurate Recordkeeping
  • More Brand Reach
  • More Customer Loyalty

Top Players in the Grocery Delivery Industry

  • Walmart+
  • Instacart
  • Shipt
  • Target
  • Kroger
  • Amazon Fresh
  • Whole Foods Market
  • Gopuff
  • FreshDirect
  • Boxed

How did these grocery delivery apps make the cut?

These applications offer same-day delivery to customers simply at the tap of a button.

What’s more? Customers can place orders from several stores at once.

  • They can easily reorder favorite products.
  • The app owners keep refining features/processes to deal with product substitutions, shopper mistakes, and promoting tipping.

Case In Point: Instacart

As early as February 2020, Instacart began noticing unusual demand for items like canned vegetables, toilet paper, and long-life milk

By the end of the first half of 2020, the company added 3,00,000 more shoppers and riders responsible for picking up and delivering groceries.

By 2021, Instacart had reportedly generated a revenue of $1.8 billion.

What is the Instacart Business Model?

Instacart uses a shared economy-based business model to offer hyper-local on-demand grocery delivery to customers.

Instacart does not own a grocery store. Instead, it serves as a marketplace for grocery stores to sell their wares.

Instacart Business Model

Source: The Business Model Analyst

Instacart makes money from the companies’ distribution and placement fees.

How is an order placed on Instacart?

  1. Customers use the mobile app to choose their preferred grocery store.
  2. They browse through grocery items, add quantity, & confirm their order.
  3. The shoppers who obtain the order are self-employed or part-time Instacart employees.
  4. They shop for the products requested by the customer and deliver them to their door. 
  5. Customers pay using the app and receive their goods without having to leave the house.

Why is it the right time to build a grocery delivery app?

Easily Manage Inventory

  • Know Inventory Status through an Admin Panel
  • Can be accessed from a smartphone or computer
  • Set notifications about stocks & order them easily 
  • Manage past, present and future stocks

Effectively Achieve Remarketing Targets

  • Collect accurate Customer Data
  • Granularly analyze Customer Behavior
  • Deliver more Personalized Offers
  • Offer Buying Suggestions

Be Future Ready

  • Utilize Cloud-Based Data Storage
  • No reliance on Paperwork
  • Minimize your Carbon Footprint
  • Reduce Delivery Cost with Route Optimization

Benefits of Building your own grocery delivery app

How Does Code Brew Labs Help?

Customer Web & Apps

Easy Login

Allow users to login seamlessly by entering basic details or through their social media accounts.

Advanced Search

Help customers find & select the groceries they need using the advanced search feature.

Schedule Booking

Enable clients to schedule the delivery of grocery orders as per their convenience.

Push Notifications & Alerts

Send your customers real-time alerts about grocery delivery status via email & SMS.

Order Tracking

Let them track the orders in real time on a map interface.

Secure Payments

Offer multiple secure payment options to give your customers the finest grocery ordering experience.

Admin Dashboard

Manage at Single Place

Access one powerful dashboard to manage all your orders & deliveries.

Monitor Deliveries

Assign drivers & track each and every moment of your deliveries in real-time

Instant Updates

Get notifications regarding all orders & efficiently streamline grocery delivery operations.

Product Listing

Add or delete products from category list as per their availability.

Discounts & Offers

Boost your customer experience by offering them coupons & discount vouchers.

Business Analytics

Monitor and manage daily orders, delayed delivery, and canceled orders.

Delivery Agent App

Easy Onboarding

Ensure convenient & hassle-free onboarding for grocery delivery agents.

Timely Order Notifications

Let the delivery agent get instant order notifications for on time delivery.

Route Optimization

Allow the delivery agents to choose the shortest & fastest delivery routes.

Delivery Status & Details

Provide them complete details like customer info, delivery location, order status, etc.

Share Availability

Give your agent the flexibility to change and share their availability at any time through the app.

Daily Earning Reports

Let your agents keep track of their daily earnings based on the number of deliveries & working hours.

Want to build a robust grocery delivery app? We’ve got you covered.

Talk to us and we’ll be happy to help.


August 3, 2022



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