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Does building a Grocery Delivery App like Instacart cost much?

Grocery Delivery App

On-demand services are like a blessing in disguise when it comes to satisfying instant human needs. You demand food, groceries, or medicines, and you can have them delivered on the same day without moving out from your home.  This lucrative industry has grabbed more than 22.4 million consumers and a worth of $57.6 billion, around $4.6 billion on food/grocery, to be specific. Instacart, Postmates, and Doordash are some of the famous players in grocery shopping and delivery service. And in this blog, we will discuss on-demand grocery delivery app development like Instaart, How Instacart works, and Instacart’s pricing model and strategy. 

On-demand grocery delivery is a top-notch industry in current times. It has replaced the brick-and-mortar grocery stores by fulfilling day-to-day essentials needs in a few hours. The exponentially rising demand needs an exceptionally working on-demand grocery delivery app development like Instacart. As reported by Forbes Magazine, Instacart was ranked as America’s Most Promising Company in 2015. Well, ever since then, it has never taken a step back. The growing number of users, employees, and services in various cities has stunned entrepreneurs. The enthusiasts rapidly want to develop an app like Instacart in current times. 

So now, even you have developed an idea around a Grocery Delivery App development like Instacart and have been looking forward to starting with its execution. However, you are still stuck at estimating the cost to make an app like Instacart. You are still struggling with queries, such as how to get started with the grocery app development and cost estimation when you have no knowledge about what factors are going to impact it or what does a limited feature app costs to create an MVP first.

Well, you have reached out to the right website. In this article, I will take you through the Instacart introduction and the various factors that affect the Cost to Develop Grocery App like Instacart, i.e., the business model, various services, the team required, etc. in order to integrate an on-demand Grocery Delivery App. So let’s get into an in-depth analysis right away:

A Brief about Instacart:

Instacart was launched in the year 2012 and has rapidly grown in various parts of the USA. The app is accessible in multiple locations and has hundreds of registered local grocery stores. 

Instacart increased its sales ten times during the covid-19 pandemic. Additionally, the sales grew by 20 times in areas such as California, New York, Washington, and Oregon. 

How does Instacart work? 

Instacart is a popular grocery shopping and delivery application delivering the order within five hours of the order placement. Users can check out the items listed on the store, add items to the cart, and schedule a delivery. 

Instacart doesn’t have its own inventory, meaning, if the listed item is unavailable, the app will help users find replacements of the same.

The user is charged $3.99 for a planned delivery or within two hours delivery for any order above $35. And for orders to be delivered within 1 hour, it charges $5.99. 

If the user order is below $35, the application charges $7.99 for 2 hours delivery and $9.99 for one-hour delivery.

Instacart’s membership is available for $99, in which free deliveries are available to the users.

Business Model for an On-Demand Grocery Delivery App

Well, the business model for an On-Demand Grocery Delivery App Development involves three models to make money out of selling services and goods, i.e., the Commission model, the Subscription model, and Service Charges. Here we have the details on each:

Read Also: What Grocery Delivery Startup Must Learn From Instacart Business Model?

What is Instacart’s pricing strategy?

Instacart adopts a sharing economy-based model, owing to which it has gained immense popularity and continues to make a grand entry in various cities. 

The pricing over deliveries remains as mentioned above; however, the pricing strategy for Instacart is as below. 

Instacart Price and In-store price:

Instacart mark-up prices are usually the same as in-store prices but may differ a bit (usually 15% higher) for certain retail stores like Costco. 

Other factors affecting the pricing are:

Instacart provides comfortable services and assured quality of products. As per their report, it has more than 40,000 stores and operates in 5500+ cities across the US and Canada. 

Instacart promises value for money and ensures that customer satisfaction remains the top priority. The pricing is consistent and transparent, which is the primary reason why customers trust Instacart moreover other applications.

Features Required for an On-Demand Grocery Delivery App Like Instacart

Grocery Delivery App Features – User panel

Grocery Delivery App Features – Admin Panel

Grocery Delivery App Features – Delivery Panel

Must-have Technologies for Grocery Delivery App 

The technologies that are involved and have to be implemented in an On-Demand Grocery Delivery App development like Instacart include the following: 

Grocery Delivery App Development Team Structure

In order to develop an  on-demand Grocery Delivery App, a development team of QA experts, as well as skilled UX and UI (User Interface) designers and app developers, are required. Moreover, here is what skills one should be opting for while looking out for a great team:

How much does it Cost to Develop an On-Demand Grocery App?

In order to carry out an estimation on the grocery app development cost, you must keep in mind the following factors, which include how complex a grocery app is, the numbers of platforms you want to launch it on, what country, and the audience it targets, etc.

The Cost to Develop On-Demand Grocery App that has a limited number of features, coding depends on the following:

In the end, considering the above-presented factors in order to calculate the Cost to Build an On-demand Grocery Delivery App like Instacart, on average, for a single platform such as Android or iOS, it costs about $10,000 to $20,000. However, the cost goes up as you increase the number of features or more, and hence, make a list of everything you have to integrate into your grocery delivery app accordingly.

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