Want to know how to build an app like Instacart? To the budding entrepreneurs, who had all their ducks in a row, the pandemic is offering all the afterburners required to build a grocery delivery app like Instacart. This COVID 19 pandemic has set the stage right for floating a grocery delivery app as the trend of grocery delivery at the doorstep which was on the rise, has now become a necessity.
Giant and successful players like Instacart have inspired many to get into the business of online grocery delivery. Take A Look At The Statistics Below To Find Out The Great Boom The Industry Witnessed During Due To COVID 19 Pandemic
- Instacart has announced plans to hire 3,00,000 additional delivery boys to meet the soaring delivery demands.
- Instacart had recorded the highest sales in the pandemic rising up to $700 million.
- Global grocery shopping app download has increased to 106M.
- Amazon app download has increased by 20% since January.
- Daily download rates of Instacart rose by 218%.
- Instacart saw 38,500 downloads per day since February.
Undoubtedly, Instacart rose to new heights and broke all records of success and income. This success of Instacart has inspired a lot many to build an app like Instacart.
Before rushing to build an app like Instacart, find out our step-to-step guide to help you build an app like Instacart, and earn revenue.
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Make an app like Instacart: The Superhero Of Grocery Delivery App
When we talk of Instacart, there are two USPs of Instacart which made it the success that it is today. They are:
- Fastest Doorstep Delivery
- No- Inventory Model
Instacart is known for its fastest delivery of groceries. It does not keep its customers waiting.
Instacart has also learned from co-players’ failures. Thus, it opted for a no inventory model. It has an aggregator model of business. Let’s read in detail the business model of Instacart.
How to start a business like Instacart with 3 Ends Of Instacart Business Model
The 3 sides of the Instacart app are:
- Retail partners
- Instacart shoppers/delivery boys
These are 3 Integral Parts of the Instacart Business Model.
Let’s See How These Three Sides Work In The Instacart App Ecosystem
- Retail Partners: the grocery stores registered on the Instacart app operate on their enterprise name are the retail partners of Instacart. They are responsible for maintaining inventory and making it available for delivery. They are not responsible for the delivery of ordered groceries.
- Instacart Shoppers/ Delivery Boy: they are the individual delivery contractors who shop the groceries and deliver them. The Instacart shoppers are further divided into:
1. In-Store Instacart Shoppers: they are the part-time delivery boys who make the order parcel ready to pick up from the store. They don’t deliver the orders.
2. Complete- Service Instacart Shoppers: they are responsible for complete shopping and delivery of the ordered groceries at your doorstep.
3. Customer: Customers are end buyers of the grocery who place orders on the Instacart app. The customers enjoy the freedom to order groceries from their preferred store.
Understanding The Instacart Business Model With Help Of The Business Canvas
Instacart operates on an aggregator model. The Instacart app is an aggregation of the retail partners, delivery contractors who serve the Instacart buyers. It’s wise enough as per experts to build an app like Instacart with no inventory model and go for an aggregator model.
Let’s Understand How Instacart Operates:
- The buyer once signed in the app, can browse and choose from wide varieties of the list and order the grocery.
- Once the order payment can be done by a number of payment options integrated into the Instacart app.
- The buyers have to let the delivery boy access the location or the buyer will manually update the location at which the grocery is to be delivered.
- As soon as the order is placed, the Instacart shopper will receive notifications via the app. The shopper gets all grocery purchases and is ready for delivery.
- The shopper will swipe the prepaid debit card issued to him by Instacart to initiate the payment.
- Consumers can either get it delivered at their home or can pick it up from the store at their convenience.
Instacart has a very simple, easy-flowing working model that ensures better abs faster delivery to the customers. As you plan to build an app like Instacart, let your grocery delivery app follow a simple yet effective operation model
Value Proposition: Instacart has become a household name in the grocery delivery business owing to its following business value propositions:
- Tie-ups with existing supermarkets
- Willing part-time workers and their cars
- Vast inventory
- Extremely quick delivery
- No warehouses
- No shiny delivery
How Does Instacart Monetize Its Grocery Delivery Business?
If being a tyro in the grocery delivery industry, you are sure to wonder how these grocery delivery apps make money? It’s very important to know the various income sources available for the app owners so as to generate income.
Let’s Understand How Instacart Monetizes Its App For A Better Understanding
- Delivery Charges: Instacart provides free delivery of the first order of every new consumer but later on its chargeable. As per the time frame of delivery, Instacart charges a delivery fee accordingly.
- Up Charging The Item: usually, this a regular practice of every grocery delivery app. Instacart also upcharges the item and earns well.
- Commission Fees: the store partners and other market leaders like Kroger also partner with Instacart to utilize its popularity to enhance their reach. For this, Instacart charges commission and partnership fees.
- Service Fee: it’s a compulsory 5% fee on every order.
- Premium Membership Fee: by paying $149, customers can be prime members in Instacart express. Instacart provides amazing discounts and free delivery above $35 all around the year.
These are few ways Instacart earns huge revenue by providing faster delivery of groceries to their valuable customers. You too can incorporate various above methods to generate revenue while building an app like Instacart.
Latest Feature Addition By Instacart To Serve Its Customers Better
During the Coronavirus pandemic, Instacart added the following two additional features owing to its vast demand to serve the customers better and provide them with valuable and fast service.
- Fast And Flexible Delivery Feature: it controls the delivery window which means the customers can now decide a date on which they want groceries to be delivered. Instacart then matches the dates and delivers at the first available date.
- Order- Ahead Feature: unlike earlier, now customers on Instacart can book groceries two weeks prior, instead of one as before. This allows the customers to keep adding essentials to your cart and update it.
These 2 recent additions to the Instacart app will go a long way as per the experts.
How to Build An App Like Instacart:
It requires a lot of patience, planning, and focus to build an app like Instacart. While you can do that, opting to build from the scratch and also the shortcut option is to go for a ready-made app solution that you can customize.
Almost all the grocery delivery developing companies provide ready on-demand grocery delivery app development services.
Suffescom solutions provide the best on-demand grocery delivery app development service. It’s at your disposal to cater to you with its expert team 24/7.
There are few basic and special features you need to incorporate in your grocery delivery app. Take care of those while building an app like Instacart to gain that cutting edge over your competitors. They are as follows:
Below Are A Few Essential, Must-Have Features Of Your Appser-friendly UI/UX
- Easy ordering and cancellation
- GPS tracking
- Seamless payment methods
- Push notifications
- Discounts offer etc
- Help and support
Apart from these, the following are some special features you need to add to build an app like Instacart and gain success like it.
- Easy Reordering Products: the app should provide the customer with the facility to reorder the items directly from the history panel or from the pre-orders items. Additionally, they can add other items to it as per the need. This helps save time and also is very convenient for the customers.
- Online In-Store Purchase: let your customers buy the products through bar code scanning in your store but buy from the app to avail special online discounts and schemes. Now, this is a cutting edge benefit for the customers.
A Grocery Delivery App To Address Real Solutions To Real-World Problems Of The Customers: it simply means incorporating features to provide real-world solutions to your customers and try to provide more and better than the grocery stores are offering.
Time And Cost Of Building An App Like Instacart:
You may wonder how much time it takes to build an app like Instacart. Now, building an app like Instacart from scratch can take more time than customizing the ready app solution provided by web development companies.
However, no one can give a precise time frame needed to build an app like Instacart. Below is an approximate time frame.
Time to develop a grocery delivery app = time to develop one feature×no of total features.
Below Is A List Of Tentative Time Taken To Develop Each Feature
- UI/UX design (60 Hours)
- Front-end and Back-end development (400 Hours)
- Technical documentation (40 hours)
- MVP testing (80 Hours )
- Polishing and bug fixing (40 hours
Cost Of Building An App Like Instacart
The cost to build an app like Instacart will be determined by various components but basically, it can come around $6000 to $10,000. This is an approximate cost. The other factor which together constitutes the cost is as follows:
- The features included
- The place of developing the app
- The size of the developing team
- Platform choice
Let’s Discuss All In Detail One By One:
- App Features: the cost can increase with an increase in the features amalgamated with the app. The more intricate your app is, the more effective and costly it can get.
- Development Team Size: the number of exports involved will decide the cost. The more the app developers involved, the more the expenses and cost of the grocery delivery app.
- Platform Choice: as of now, android is the most opted platform with iOS following the suit. Your choice of the platform will majorly depict your app choice. The grocery delivery app however should run on iOS and android, both smoothly.
- Place Of Developing The App: the expert’s hourly rate changes as they pee the location because of the availability or resource and also expertise and experience of the app developers. A location with easy access to app developers will help you get the service at affordable prices.
How to Create an App like Instacart based on the latest business models?
There is no doubt that technology has developed day by day, and people blindly depend on the new technology. However, modern technology is helping people think smartly, and also it can help reduce and save time for them.
Today, people prefer to do shopping online, and it carries a lot of benefits for the users. And Instacart is one such famous platform. It not only helps provide online grocery delivery but also gives a chance to entrepreneurs to earn money. The grocery platforms help people deliver within an hour, and the customers receive their stuff at their doorstep.
How to start a business like Instacart and generate revenue from it?
If you are planning on Starting a business like Instacart and generating high profit from it, you need to determine how it works and what it is.
Basically, Instacart is one of the economy-based business models that offers grocery delivery by connecting with customers. Moreover, it doesn’t own any grocery stores, but it is the platform that delivers grocery items.
In order to make an app like Instacart, first, you need to think about how to target the customers so they start purchasing from your app. Instacart is a well-driven platform that allows customers to choose items from their favorite grocery stores. Also, with the help of a mobile app, you can browse grocery products. The customer can also add the quantity to confirm the order once it has been placed.
Look out for the following things and benefits to develop an App like Instacart.
1: Delivery Fees:
To Develop an App like Instacart, you can follow the free delivery option for a specific amount. Instacart follows a certain standard delivery fee for the customer. It also comes with some time benefits, and thus you can get the order within 1 or 2 hours of delivery charge. But sometimes the delivery charge might get varied.
2: Membership fee:
To develop an app like Instacart, it will offer you the annual membership card along with Instacart express and the price. Whenever the user uses the membership card, they can get the free grocery to deliver for a year with some terms and conditions.
3: Markup Prices:
Few stores sell their items on Instacart and get the product at the lowest price. Thus, Instacart will find the customers with the given techniques:
1: They seek help in the form of advertising.
2: Via Internet Marketing.
3: Free, fast delivery.
4: Providing Various offers.
Aspects of How to Start a Business like Instacart
1: It is a well-established network of well-known supermarkets.
2: No need for warehousing and storage.
3: Multiple sources of inventory.
4: Instant delivery within 2-3 hours.
5: Workers are willing to work flexibly without having full-time employment.
6: One can get the ability to shop from multiple stores in one place.
Different Segments of Instacart
The whole ecosystem of Instacart mainly depends on three customer segments: Users, Shoppers, and Store Owners. So, there needs to be connectivity between them to fulfill the needs of the customers.
Usually, the customers interact with the app differently, and all of them gain different benefits from the app. Both the shoppers and consumers need to understand how to satisfy their needs and keep them involved in the ecosystem.
The user: Basically, users are the people who are willing to buy groceries from the app. Also, they are an essential part of the ecosystem as they are the ones who create demand for the products. Without having this demand, the role of the other customer will become redundant.
Here we have discussed the role of a user:
1: The user uses the app to buy groceries from multiple stores at once.
2: They make online payment which then goes to the stores. Hence they are the ones who create the revenues on the app.
3: Users are asked to put their address on the app, then used to find stores near them.
4: One can use this app easily accessible on mobile, laptops, and desktops.
5: Once the order has been placed, the shoppers are immediately informed to make the process smooth.
6: The app allows users to pre-plan their grocery lists and schedule lists for a later date.
7: You also need to decide to schedule recurring orders.
The Shoppers: The users are the ones that create demand on the app, and then shoppers are the ones who fulfill these demands. They are generally flexible workers who work on an hourly basis. Also, shoppers get paid from the app and generate better revenues.
Store owners: These are the supply creators on the app, and the store owners are partnered with Instacart and allow them to sell their groceries via the app. Moreover, they benefit from the popularity of the app and can reach a wider audience. Thus, the app allows the owners to promote their store on the app.
While it can be an arduous task to build an app like Instacart, a good web development company can smooth out your work and lend you the best support with its expert team to build and launch an Instacart Clone App. I hope this article gave you all insights about the Instacart app and you derive great lessons from Instacart, the grocery delivery giant to reap the benefits.