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30 December 2022

How to Develop a Grocery Delivery App?

Are you looking to do the grocery delivery app development?
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According to a CNBC report, the online food on-demand delivery market will grow at a rapid pace over the next five years, and the delivery service itself will become mandatory for all online and offline stores, as a result of which they will either have to launch their own food delivery applications or connect to the appropriate aggregator. Below we will show you how to enter this market by creating the mobile application you need.

Niche and target market

When building your grocery delivery app, you can follow suits of apps like Zomato, Postmates or AmazonFresh, focusing on the widest possible target audience and range. Or you can choose the Farmiga, Supr Daily or Whole Foods Market path, which target a specific niche.

The first option should be chosen if there are no or practically no competitors in the target region, since otherwise it will be necessary to compete with the market leaders, which is quite expensive and risky. The second option is less costly and has a better chance of success, since a niche project can stand out with a design that is focused on a specific target audience. In addition, it will be possible to launch a targeted marketing strategy that is cheaper and at the same time much more effective than traditional advertising campaigns.

The simplest example of a niche food delivery application is differentiation by merchandise, such as organic, farm, local, or meat products. Also, online grocery stores and services are now popular, which, by subscription, once a week or a month deliver a set of products to your home.

More sophisticated online delivery services try to differentiate themselves through user experience, such as fastest delivery (Weezy guarantees delivery within 15 minutes), drone use (Kroger), wholesale prices (Boxed), AI for customer recommendations (being tested).

When launching your application, you can choose one of the above niches, if it is reasonable for your target market, or you can create something of your own, which has not been previously implemented anywhere. For example, the market does not yet have a service focused on the elderly, both in terms of assortment and user experience. Or a service that would serve the needs of biohackers - people who want to extend their lives by taking a certain niche, dietary supplements and drugs.

The chosen niche can be any, the main thing is that it meets three criteria:

Food delivery model

Aggregator model (order only)

This option assumes that the food delivery application you create will be a multi-vendor platform where any store, warehouse, farmer or other food supplier can place their goods and sell them to end customers. In this case, the supplier takes over the delivery, while you will be engaged in the maintenance of the online service and its development.

This is a simple model as it does not require creating your own food delivery system like UberEats. It is used by Zomato, Craigslist, Letgo and many other applications, both in the field of online food delivery and in other shopping niches. For their services, such sites take from 5 to 30% of the order amount or charge a listing fee.

Order and delivery / logistics model

In this model, you are responsible for taking orders, sending them to suppliers, and delivering them. Such a service is more difficult to implement, but in the long term it is more profitable, since all providers can connect to your application, and not only those that have their own delivery service (usually there are very few of such).

There are two ways to implement a delivery service: using your own couriers, like at FedEx, or freelance couriers, like at Uber. Usually now they use the second option, since it is more flexible and cost-effective, however, this way you cannot guarantee the delivery speed.

Monetizing a food delivery app

For aggregator apps. Such services profit from:

For applications with their own logistics. These services usually make money from subscriptions (the restaurant pays for connection), advertising, additional features and delivery. Shipping cost depends on the app. Here are some examples:

Food delivery app functions

List of functions of the client side of the application

List of functions on the courier side of the application

List of functions on the admin side of the application

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