Guide To Building An On-Demand Grocery App

By Ruchir C.

Modern shoppers are more likely to have their products delivered to their doors as the pandemic continues. People are becoming more afraid of being in crowded areas and having to leave their homes. Congested areas are the most likely to spread the disease. The number of people who use online grocery apps on demand is increasing rapidly despite the current pandemic. Around 25% of online shoppers order their groceries online. On-demand grocery app development looks bright. It is highly profitable.

On-demand grocery app development is an opportunity for businesses and startups to invest as there has been a significant shift in how people shop online. This guide will help you to understand the process of investing in an on-demand grocery app development project.

What is a Grocery Delivery App?

Fresh Groceries at your fingertips! People no longer have to prepare a grocery list and then go shopping. The delivery partners can also be accessed through these services. These partners will deliver the service to your doorstep. Log in to the app to view and add the grocery to your cart. The app is highly sought-after for its features, such as online payments via UPI or debit/card.

A Grocery Delivery Application: Current Market Overview

During the forecast period, two factors will drive market growth: changing consumer shopping preferences in response to the pandemic and continued e-commerce expansion. The market will be helped by the availability of many payment options and the guarantee of contactless delivery by online grocers.

  • Global grocery revenues will be valued at US$565.30 trillion in 2023. This figure is expected to grow in the coming years.
  • The compound annual revenue (CAGR) is expected to rise by 15.41% to US$1,003.00 Billion by 2027.
  • According to reports, e-grocery purchases accounted for 4.3% of total grocery sales in 2020 before the COVID-19 epidemic. This ratio will rapidly rise to 5.4% by the end of 2021 and 10.7% by 2024. It will then rise to 13.5% by 2025.
  • According to CAGR, the global online grocery market will grow at a 24% annual rate and reach $250 billion by 2025.
  • App store trends also show that the total number of shopping apps downloaded reached a staggering 106M at the start of April 2020, according to App Store Trends. TechCrunch reports that Walmart's grocery app received almost 54,000 downloads per day.

These statistics show that the industry is set to continue growing. Online grocery delivery services are increasingly popular with shoppers. This trend is expected to continue after the pandemic.

Postmates, Big Basket, and Amazon are just a few of the major players that have taken advantage of this fact to achieve huge success in 2020.

Let's begin by explaining the flow of the application.

A Grocery Delivery Mobile App Working

Here's how a typical grocery delivery app works:

  • Register as a new user on the app by entering the required details. Sign in to the app if you are an existing user.
  • Use the category feature or search bar to find a specific item in the store.
  • Add product to your cart/wishlist.
  • Choose the address to which the groceries should be delivered.
  • You can make the payment online using the gateway you prefer
  • The app will send a confirmation of the order to the customer.
  • The order is received by the admin and forwarded to the appropriate grocery store manager.
  • The store manager creates the order and notifies the courier partner so that they can pick it up.
  • Customers and admin are kept informed of delivery statuses at all times.
  • Customers can rate the app and leave reviews after delivery has been received.
  • Customers can also reach customer service via live chat, which is available 24 hours a day.

The Benefits of Developing A Grocery App

  • Easy Accessibility to Customers: Building grocery apps provides ease for end users. This allows customers to have their products delivered right to their doorstep. This reduces effort and ensures the user does not have to leave the house.
  • Time-Saving: This is an important aspect that users should consider when downloading an app. Users should be able to order the goods they want with just a few clicks from their smartphones. It should not have any effect on household chores. It should not be necessary to wait in long lines for billing purposes.
  • Upscaling your business: Creating an easy-to-use online grocery app can assist you in expanding your online presence. This also strengthens your company's physical presence. You can look forward to growing your customer base by hiring experienced grocery app developers.
  • Alternative products: Customers can immediately search for the range of products they are looking for if it isn't available on the app. This app simplifies the purchase of grocery items.
  • Apps that offer discounts and attractive offers: There is always a lot of competition. This will ensure customer retention and satisfaction. This increases the application's sales and opens up new avenues for growth.

Understanding the Business Model of Grocery App Development

  • Aggregator Model: this is a business model that focuses on grocery app development. It ensures collaboration with local grocery stores or outlets. The app will list other nearby stores and chains and allow users to collaborate with them. Users can browse the entire list of available grocery stores via the app. They can then choose the shop they wish to buy the groceries.

The app will typically mediate between the local grocery shop and end users. The store owner is responsible for ensuring that goods arrive on time.

  • Marketplace apps: BigBasket is a leading example of this business model. Marketplace apps provide the ability to order groceries and have delivery agents deliver products directly to customers' doorsteps.
  • Multi-store chains: Walmart - The retail giant can effectively portray the business model. Customers who can handle the delivery of the products themselves will have an app.
  • Single Stores: These are applications that are only handled by one store owner. You might be able to develop an application if you have access to a brick-and-mortar store. The order is handled by the store owner and all delivered to customers.

On-Demand Grocery Apps Money-making Method

  • Paid Membership: Businesses can partner the app with multiple retailers and apply a commission-based revenue model or structure. The application's features will determine the commission.
  • In-app advertising is where apps can list products and services from other apps. This is a well-known business model that improves the user experience. The app owner will earn a commission for every click or purchase.
  • Delivery and service fees: Apps can charge a delivery fee for each grocery order. It will depend on many factors, such as the distance to delivery and the number of groceries ordered in an emergency. Fixed-rate grocery plans may also be offered by some applications.

Top Features in an On-demand Grocery App

You can expect these features from a trusted grocery app development company:

User Panel

  • Profile: This is the first step in using the app. They can easily register with the help of email addresses or phone numbers. This feature allows users to sign in using their social media credentials quickly.
  • Advanced filters to make browsing easier: Users can use advanced filters to search through specific categories or products they are interested in. This saves time, and users don't have to look through every product.
  • Delivery Scheduling
  • Order Tracking: Customers can use this feature to be updated in real-time with order tracking. They can also see the status of their products.
  • Order Management: Customers can manage their entire order from one place. Customers can view the order history and place the same orders as before. They can also change an order, such as canceling or returning it.
  • Multiple payment options: This is a vital feature for any grocery app that sells on demand. Users can make payments quickly and securely by using the built-in payment options.
  • Specials and Discounts: This section of the grocery app will provide information about ongoing discounts and specials on various products. Users will be able to get lucrative deals on their favorite products.
  • Feedback: Customers can provide feedback and ratings based on their shopping experience with the app.

Delivery Panel

  • Delivery Request Notification: This feature displays all delivery requests. This feature also allows you to display information such as order numbers and additional delivery details. The delivery person is notified of all information.
  • Accept or Reject a Request: The delivery person can accept or reject the request. It all depends on where the customer is located and other factors.
  • Tracking Customers' Locations: Delivery professionals can track customers' locations using this app feature. This will allow them to analyze the most efficient route for ensuring delivery within the timeframe.
  • Delivery confirmation: The driver will receive confirmation from the store and users regarding the delivery.
  • In-app chatting or calling: This feature allows drivers and delivery personnel to communicate securely within the app. They can use the feature to fix the exact time or location of the delivery to their customers.

Admin Panel

  • Dashboard: This dashboard is the central point of administration for any on-demand grocery app. Administrators can use the dashboard to track and manage all aspects of running the app.
  • Assign managers: The administrator is responsible for assigning and adding dedicated managers to the workplace to deliver the best customer experience.
  • Assign Order: The admin can use this feature to assign new orders to the grocery app. The administrator should ensure that the orders are executed seamlessly.
  • Manage Payments: The admin is responsible for all payments. Administrators should also set milestones for grocery stores.
  • Manage Customers: The admin must be able to manage customers and coordinate with them according to their requirements.

Advanced Features of a Grocery App

  • Push Notifications: Even if the user is not using the app, the push notification feature can send alerts to mobile phones. This feature will inform users about ongoing discounts, new offers, product additions, and other important updates.
  • Real-time Analytics: This is helpful in data analysis. It will be accessible through the app's administration panel. It will enable the admin section of the app to monitor users' activities, detect frauds before they occur, reduce overall costs, and increase conversion rates.
  • Communication Channels: In-app messaging and in-app calls will allow the delivery agent and store owner to communicate.
  • CRM Integration: CRM integration can bring maximum benefits to various businesses. It streamlines, optimizes, and centralizes client communication. This allows customers to be better understood while increasing segmentation and customer retention.
  • GPS Tracking: This feature allows users to have a more personalized experience. It's possible to pinpoint the exact location of users. This helps to ensure that products are delivered on time. Both the delivery agent and the users can track each other's locations. It is, therefore, a crucial element.

Read More: How Much Does it Cost to Develop a Kinemaster Like Video Editing App?

Steps to develop the Mobile App for On-Demand Grocery Delivery

1. Finish the Business Model

You can make your app cater to one or both of these models.

  • Aggregator model- This model works with local grocery shops. The app will list all registered grocery stores and allow users to choose which store they want to shop at. The app acts as a middleman between the shop owner and the customer.
  • Dedicated Model -Various grocery stores can sign up to sell their products on your app. Your app must have a strong online grocery platform to handle this model. It will assign parcels to the appropriate courier personnel and deal with delivery executives.

2. The Application's Features

This is a brief overview of the essential features your mobile app must have. You can design it to have three panels or dashboards.

  • Customers Panel
  • Panel for Store Owners
  • Admin

To be included:

  • Register: All new customers must register on the app. Existing customers can log in by simply filling out their basic details.
  • Profile Management: Managing store details such as name, address, and contact information.
  • Collaboration with Store Owners: The administrator can coordinate with managers in order to streamline workflows.
  • Browse Products: Customers can use the search function or "filter by type" to browse through the product catalog.
  • Edit/add product details: Modify product descriptions, add or delete products from the catalog, etc.
  • Inventory Management: An administrator can manage and control all enlisted products.
  • Add to cart/Wishlist: Add products and services to your shopping cart to check out or to add to your wishlist to purchase later.
  • Live Tracking: To track the status of your courier service in real-time.
  • Order Tracking: A complete overview of the tracking process and all milestones at which every delivery is reached. To track the status of their order, customers should be able to receive SMS and mail alerts.
  • Notifications: Notifications are used to notify customers and managers of the status of an order.
  • Payment Method: Customers can pay using secure and private payment gateways such as Stripe.
  • Payment Management: View the payment status of every order.
  • Ratings & Reviews: Customers can leave feedback about their shopping experience and the products they have received.
  • Profile Settings: Customers can modify and update their profile information whenever they need.

3. Finalize a team

A highly skilled team is necessary to make your vision a reality for an app that delivers on demand. You should look for experience in complex custom features, user engagement, and website functionality development. The following should be included in your basic team:

  • Project Manager: To translate and analyze the client's requirements for the development team. He is responsible for managing the project timelines and delivering all deliverables.
  • Mobile App Developers: To create an app that runs on Android and iOS, you need to hire experts in iOS or Android technology.
  • Front-End Developers: To design the app's user interface.
  • Back-end developers: To develop plugins, manage databases smoothly, and use APIs and other features.
  • QA Expert: Validating the app using various quality checks and ensuring all required features and functions are in sync.

4. Technology that is Out of the Box

Here are some pointers to help you stand out. Smart algorithms can be integrated into the application in addition to the traditional backend and front-end tech stacks. This will create an exceptional user experience. Artificial Intelligence, for example, can be used to analyze customer shopping patterns. Customers can use it to automatically fill their shopping carts with the necessary items on a weekly/monthly basis. Customers can schedule delivery at a time that suits them best. These details will help retain customers and increase their loyalty to your brand.

This is not all. You also need to choose the right tech stack for app development.

Technology Stack to iOS Apps:

  • Programming languages: Objective C, Swift
  • SDK: iOS SDK/p>
  • Toolkit: Apple Xcode

Technology Stack to Android Apps:

  • Programming languages: Java and Kotlin
  • Toolkit: Android Studio & Android Developer Tools
  • React Native + JavaScript/TypeScript
  • SDK: Cross Platform App Development Technology Stack for Android SDK
  • Xamarin + C#
  • Flutter

5. Other Factors

You can increase your market share by adding useful features that will enhance your customers' shopping experience.

Model of development and timeline

Decide whether you prefer the agile or iterative development approach. This will impact the app's robustness and Time To Market (TTL).

MVP or Full-Fledged Development

A minimum viable product (MVP) is a product that only has the necessary features. Additional features are then added to the app based on customer feedback. Sometimes, features that are not necessary are removed. Full-fledged development is when all features are developed at once. If the app fails to perform in the market, this can pose a risk and impact business profitability.

Creating an app that is simple to use and loads quickly are important. A complicated application will frustrate customers. Your company and your customers will both benefit from a well-designed application. Here are some ways to do it.

What is your App Capable of Doing for Customers?

Compare the prices of various products from multiple brands

  • Explore multiple brands under one roof
  • Hassle-free doorstep delivery
  • All sections of grocery shopping in one place
  • Browse product descriptions and ingredients online.
  • Exposure to more brands
  • Avoid long checkout lines

What will This do for Your Business?

  • Brand recognition
  • Customer loyalty
  • Customer retention
  • Wider audience reach

Development Costs for an On-Demand Grocery App

The exact cost of developing an on demand grocery mobile app is unknown. It will differ depending on the project. Many factors must be considered when calculating the cost of any grocery app development project. Here are some things to think about.:

  • The reputation of the Development Partner: An experienced, reliable and effective grocery delivery app developer might be more expensive than one with less experience. Prioritizing quality when developing an app for such a highly sought-after project is important.
  • The geolocation of the Development Team will also impact the project's cost. North American developers, for example, will be more expensive than Asian developers.
  • Fully-fledged App or MVP Model: A MVP model will only have a few features. A fully-fledged application will include all the important and advanced features. The development of MVP apps can be very cost-effective.
  • Team size and timeframe: Projects with shorter deadlines will be more expensive than those with longer deadlines. Time size is also important.

The average cost of developing an on-demand grocery app for Android and iOS is between $15,000 and $35,000. This price can vary depending on the number of features and integrations you add.

Which Grocery App is Best for Your Business?

It will all depend on your app's specific needs. However, both users and businesses find aggregator-based apps and models to be the most risk-free.

Suppose the grocery store owner refuses to deliver or is inappropriate for the customers. In that case, you will end up putting your brand at risk. Each type of demand grocery delivery app will have its merits and detractors.


This is the ideal time to launch your user-friendly and feature-rich grocery app into a highly competitive market. But, it will take a lot of knowledge and expertise to develop a robust grocery app available on demand. Hire grocery app development services from a reputable company or team of skilled developers to get the best results.

People have difficulty obtaining daily essential items because supermarkets and grocery stores are locked down during the pandemic. Consumers want to shop safely and avoid crowds. This is the ideal time to develop a grocery delivery app that makes sure every need is met.

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