Apps Like Instacart: How To Jump-Start Your Local Delivery App

The changing era has changed the way of acquiring resources in our day-to-day life. On-demand apps are most sought among people in today’s world to do grocery shopping. Especially, the pandemic lock-down has aggravated the usage of on-demand apps by people to make purchases without having to leave their homes.

According to a survey, one-third of people prefer to do their grocery shopping online, and the number is likely to escalate in the future. The online food delivery market revenue is proliferating and is expected to reach $136.3 million by next year. There can be no single entrepreneurs out there who don’t want to take advantage of this opportunity of getting into the grocery delivery business.

The grocery delivery sector is highly competitive, and a unique game plan is required to succeed. Analyzing a popular grocery delivery application such as App like Instacart will help maintain the standards of grocery delivery. This can be the better time to take a closer look at things you need to know about grocery delivery apps. This blog will provide the necessary exposure required to commence your business journey.

The Functioning Strategy of the App Like Instacart

Instacart’s functioning strategy is unique that puts it ahead in the race of the grocery delivery applications. It operates under three levels of functioning, retail partners, Instacart shoppers, and customers.

• Retail Partners: Instacart has partnered with multiple stores all over the cities to offer a whole range of options to their customers. The stores have to sign a contract to get listed in the Instacart app. According to Business Wire reports, Staple US has partnered with Instacart to list products of 1000 retail stores all across the U.S.
• Instacart Shoppers: They are the delivery contractors who shop products from the respective store. They are employed on a contractual basis to pick up orders for the customers upon receiving the customer requests in their Instacart app. They go to the respective store to pick the goods. There are two types of delivery executives who are part of Instacart:

1. In-Store Instacart Shoppers: They pick the product up and deliver it to the customers as per their needs. The delivery executives work on a part-time basis for Instacart.
2. Full-Service Instacart Shoppers: Delivery agents work on a full-time basis to deliver products to customers.

Workflow of the App

• Users can order groceries on the Instacart like app after exploring the list of stores and products available on the app platform. The user can also make payments for the ordered items using the app platform.
• The stores receive notifications about the customer’s orders along with the delivery details.
• Once the order items are prepared for delivery, the deliverer is intimated to pick up the order from the stores and deliver it to the customer.

Getting into Business: How to Build an App Like Instacart?

1. Business Model

Before diving into the app development process, you need to choose the type of business model for your on-demand grocery delivery app.

• Marketplace: Marketplaces display their menu on the app platform. People can order from the listed items, and delivery providers will make it to the buyers. In this model, the business owner doesn’t need to own a shop or store.
• Aggregators: Unlike the marketplace, the menu here is listed by the stores you work with and not by you in this model. An app like Instacart works based on this model.
• Single Store: The small local stores adopt this model to provide convenient service access to their regular customers
• Grocery Chain: The app working on this model provides products for people all over the city or even the country.

2. Features To Include

As discussed previously, there are three parties concerned with this grocery delivery service. By analyzing the features, entrepreneurs can provide amazing customer service and facilitate their stakeholders, such as delivery persons and store owners, to function efficiently.

Customer App

• Quick and Convenient Search: It facilitates the users to find their desired products without needing to roam around looking for specific products.
• Cart: The shopped products are instantly added to the cart fastening the check-out process.
• Suggestions: Most frequently purchased items can be displayed that saves time for the buyer to add items to the cart quickly.
• Multiple Payment Options: PayPal, Quick-pay, Pay U, etc. can be included.
• Order Tracking: Customers can be allowed to track the status of their order at any particular time.
• Feedback System: Services can be improved by users’ valuable suggestions.

Service Provider App

• Profile: The service provider can register in the app platform providing his details.
• List of Orders: Displays the list of orders from the past and the ongoing orders to keep a record of the services.
• Accept/Reject Requests: Helps the service providers to take up delivery based on their availability.
• GPS Navigation: Helps the shoppers find their way quickly to the customers’ place.
• Wallet: The delivery person can keep track of their income for the delivered orders and withdraw funds whenever they want.

Admin Panel

• List of Stores: It gives dynamic data about the inventory of the stores and their menu.

Customer Support

• Finances Dashboard: It allows monitoring payments and views the history of transactions made through the app.

3. Monetization Model

Besides providing convenience to the users, the products also need to be reasonably priced to attract users. Let’s look at the ways of generating revenue while staying affordable for buyers.

• Delivery Fees: You can incur delivery charges with the total order amount for bringing their orders to the doorsteps. You can charge extra if the user wants their order to be delivered in a short time.
• Service Fees: A percentage of the amount can be charged as a service fee for covering up your operating expenses for the app, such as shopper management, customer support, etc.

You can widen your revenue flow by offering premium plans, allow third parties to post ads, and so on.

Your Services Matter!

Building an Instacart like app from scratch is a tedious process. It is one of the main reasons for major business establishments using ready-made clone app solutions for Grocery delivery business management. Evaluate your choices and make the right decision for the grocery delivery app.