Online grocery delivery is an underrated business idea that got noticed amid the Covid-19 pandemic. This crisis has driven many traditional grocery businesses to online business by launching their on-demand grocery delivery apps.   In earlier times, people visited the grocery stores, bought groceries, and stood in a queue to pay their bills. Now, they are forced to stay indoors to prevent virus transmission. So, they showed interest in ordering groceries online and those to be delivered to their doorsteps.  Apps such as Instacart, Bigbasket, and Grofers have become a part of their lives. 

Therefore, this change will be long-lasting as people’s interest in buying groceries online will not subside post-Covid-19.  Even though there are big players in the market, there is still a place for newbie entrepreneurs to launch their grocery apps. Those who have an idea to do so can consider the tailor-made Instacart Clone app. This blog will let you know why starting an online grocery business is a perfect idea in 2021.  

Predominant reasons for the growth of the online grocery business

• No one can deny the fact that the Covid-19 pandemic is the major reason for the growth of the online grocery business. People do not have any other better options to buy groceries during this pandemic. So, they started to move towards purchasing their essentials, including groceries online. This is how the demand for grocery delivery apps has surged remarkably.
• A seamless functionality is a prime factor for a user-friendly app. Hence, features such as secure payment modes, real-time tracking, customer support, and order history are appealing to the customers. This encourages customers to use the app for grocery shopping. Despite this, a bug-free app is one major reason to retain customers. 
• In the digital age, everyone prefers to shop online hassle-free. The grocery apps make the process of ordering groceries easier as they have to choose the grocery store and select the groceries for order placement. In a nutshell, they can place their orders in almost a few taps. One key advantage is that they can view the price of each item and get to know the total cost of the ordered items before making a purchase. 
• Contactless delivery has become a necessary feature during the pandemic situation as this ensures the customers’ safety. The incorporation of this feature in the grocery apps enables the delivery person to leave the order in front of the customers’ door after ringing a bell. This is to eliminate the direct contact between the customer and the delivery person.  Apart from this, the implementation of safety measures is one such reason for the growth of the online grocery business. It includes wearing gloves, wearing a mask, sanitizing the box, and many more. Keeping the customers’ needs in mind and adapting to the recent market trends will always help to sustain in this flourishing market.
• The competition in the grocery market is reinforcing as time flies. With many players in the market, every individual wants to retain their existing customers and draw attention from new customers. To meet this, everyone is trying to provide the best service, quick delivery, and quality products. So, the standard of the online grocery business increases.   
• Moreover, customers can obtain groceries at an economical price which seems to be quite affordable when compared to buying groceries directly from the store. It encourages customers to shop more online. Significantly, the app offers discounts and offers occasionally to get noticed by the target customers. Undoubtedly, customers are able to get the best quality products at affordable prices.

What is the Instacart Clone app and how does it work?

Instacart Clone is designed and developed in such a way that its business workflow is the same as Instacart. This enables you to develop and launch your grocery delivery app within a few days/weeks as it is customizable based on your business requirements. Instead of developing an on-demand grocery delivery app from scratch, opting for the Instacart Clone Script is pocket-friendly. Let’s get deeper into the working model of it.

Registration – Upon installing the app on their smartphone, customers have to complete the registration with the necessary details.

Choose grocery items – Secondly, they can search for a nearby grocery store and select it. Choose the groceries which they need to purchase. 

Place an order – The chosen grocery items will be automatically saved to the cart. They can make changes if needed before proceeding.

Schedule delivery time – They have the option to place their order now or schedule delivery later as per their convenience. 

Select a payment option – Now, the app will prompt the customers to select a payment mode for transactions. They can opt for cashless payment or cash payment as per their wish.

Grocery delivery – The grocery store processes the order and the assigned delivery person will deliver it to the customer on time.

Feedback – After the order delivery,  it’s up to customers’ wish to provide feedback for the service. 

The quality of service is the pillar of the online grocery business. Getting positive feedback for the service will elevate the business to a great extent. 

How can you monetize the Instacart Clone app to generate revenue?

Before starting a business, you have to choose which monetization strategies to consider for generating revenue. The following are a few of the standard monetization ideas that you could prefer to implement. 

Commission-based revenue model

This strategy works well for aggregator models. You can charge a commission fee from the registered grocery stores on each order they get via the app. 

Delivery fee-based revenue model

On every order, you can charge the delivery fee from the customers. This is the common revenue stream that most delivery apps follow. As these charges are not fixed, it mainly relies on order quantity. For instance, Instacart charges $5.99 for delivery within an hour.  

Subscription fee-based revenue model

Customers who avail of the subscription plan can get some of the benefits like free delivery, scheduled delivery, or discounts. They have to pay a subscription fee on a monthly or yearly basis.

Cost of developing the Instacart Clone app

The Instacart Clone app development cost varies in accordance with your requirements which mainly includes features and functionalities. Besides, other prominent features that contribute to the cost are listed below.

• Choice of features 
• UI/UX of the app
• Technology stack 
• Third-party app/service integration
• Selection of app platform
• Region of the app development company

For instance, the cost of developing a basic grocery delivery service app with general features may range from $30,000 – $50,000. In comparison, the cost will elevate significantly if you consider developing a classic app with innovative features. 

Summing up

Online grocery businesses have witnessed prodigious growth in 2020. It is forecasted to rise further in the coming years as people adapt to the new normalcy of shopping for groceries online. So, there is no doubt that launching the Instacart Clone app in 2021 will be a sure success.