How to Build a Grocery Delivery App Like Shipt

The grocery delivery business has experienced rapid growth, largely due to the increasing demand for convenience and safety in shopping, especially post-pandemic. Online grocery shopping has evolved from being a novelty to a critical service. According to the latest reports, the global online grocery industry was valued at over $250 billion in 2020 and is expected to expand at a CAGR of 24.8% through 2027, reaching more than $1 trillion. This rapid growth highlights the increasing consumer shift toward online grocery shopping platforms.

The rise of apps like Shipt, Instacart, and others has contributed to the booming grocery delivery industry by offering quick and convenient delivery of everyday essentials. As more consumers become comfortable with online grocery ordering systems, grocery app development companies have started to leverage this opportunity, making it easier for businesses to develop their own grocery mobile apps. The on-demand grocery delivery market is flourishing, presenting a huge opportunity for entrepreneurs and businesses looking to enter the grocery delivery platform space.

What is Shipt and How It Captured the US Market

Shipt is a leading grocery delivery platform that connects consumers with local stores through an easy-to-use app. Shipt’s model is built around partnerships with major retailers, including Target, Costco, and CVS, offering delivery for a wide range of grocery and household products. Since its inception in 2014, Shipt has captured a significant share of the US grocery delivery market, thanks in part to its acquisition by Target in 2017. This partnership provided Shipt with an expanded customer base, exclusive deals, and access to Target’s inventory.

One of Shipt’s key selling points is its same-day delivery feature, where customers can receive their orders within hours, something many other platforms struggle to provide. This has made Shipt highly popular among consumers looking for a quick and efficient solution to their grocery shopping needs. The grocery delivery app development behind Shipt has made it easy for customers to shop, track, and receive their orders in record time.

Shipt has also capitalized on the increasing popularity of on-demand grocery delivery apps, positioning itself as a leader in the online grocery delivery platform space.

How Does the Shipt Grocery Delivery App Work?

Shipt’s grocery delivery application development focuses on simplicity and user-friendliness. Here’s how the app works for both customers and delivery personnel:

1. User Registration: Users can quickly sign up using their email, phone number, or social media accounts. The app also offers an option for guest browsing, allowing users to explore products before committing to creating an account.

2. Product Search & Filtering: Customers can browse a wide range of products by category, brand, or store. Advanced filtering options enable users to sort items by price,or availability, making it easier to find what they need.

3. Store and Vendor Listings: Shipt collaborates with local stores and supermarkets. Customers select a preferred store in their area and view the products offered, including fresh produce, packaged goods, and specialty items.

4. Order Placement: Once customers finalize their selection, they can review their cart, confirm delivery preferences, and proceed to checkout.

5. Delivery Scheduling: Shipt provides flexible delivery windows, often as short as one hour, ensuring convenience for customers who want their groceries delivered on their schedule.

6. Payment Options: The platform supports various payment methods, including credit/debit cards, PayPal, and digital wallets, offering seamless and secure transactions.

7. Real-Time Order Tracking: Customers receive live updates on their order status, from shopping progress to delivery, ensuring transparency and reliability. Notifications are sent for each stage of the process.

8. Admin Panel: The admin oversees platform operations, managing user accounts, vendor partnerships, product availability, order tracking, and performance analytics to ensure smooth functioning.

How Does This Platform Generate Revenue?

Shipt utilizes a multi-faceted revenue model that combines membership fees, commissions, and service charges to generate income. The platform primarily benefits from:

1. Subscription Fees: Shipt charges an annual fee for customers to access unlimited deliveries on orders above a certain threshold (typically $35). Non-members can also opt for a pay-per-delivery option.

2. Retailer Partnerships and Commissions: By partnering with major retailers like Target and Costco, Shipt earns a percentage of each sale made via its platform.

3. Service Fees: Delivery charges, service fees, and tips from customers also contribute to Shipt’s revenue stream. These fees vary depending on the order size and delivery distance.

4. Promotional and Ad Revenue: Shipt partners with brands to promote their products on the platform. These partnerships often include in-app advertising or discounts, which provide an additional revenue stream.

Features of a Grocery Delivery App Like Shipt

To build a grocery delivery app like Shipt, it’s essential to include features that ensure both convenience and reliability. Here are some must-have features for each part of the app:

Buyer App

• User Profile Management: Buyers can create an account, store their preferences, and save payment methods for easy future transactions.

• Product Search and Filters: An intuitive search engine allows users to filter products based on category, price, brand, and more.

• Order Tracking: Real-time order tracking and status updates allow customers to know exactly when their groceries will arrive.

• Payment Integration: Multiple payment gateways (credit cards, digital wallets) for secure transactions.

• Push Notifications: Customers receive notifications for promotions, order status, and special offers.

Delivery App

• Real-time GPS Navigation: Delivery personnel can find the fastest route to customers using integrated GPS technology.

• Order Assignment: Delivery agents receive real-time notifications with details about the order, including pickup and delivery instructions.

• Communication Features: In-app chat allows shoppers and delivery agents to communicate with customers for updates or clarifications.

• Ratings and Reviews: Delivery agents can rate their experience with customers, which contributes to overall service quality.

Admin Panel

• Order and Inventory Management: The admin panel tracks orders, updates product availability, and manages inventory.

• Revenue Management: It tracks all revenue generated through subscription fees, delivery charges, and commissions from sales.

• Customer and Driver Management: Admins have full control over users, including the ability to add or remove users and manage disputes.

• Analytics and Reporting: Insights on sales, app performance, customer satisfaction, and trends help the business make data-driven decisions.

Seller Panel

• Product Management: Sellers can manage their listings, update prices, and check inventory levels.

• Order Management: Sellers can view incoming orders, track deliveries, and confirm product availability in real-time.

• Payment Reporting: Sellers can track their earnings and view detailed financial reports.

Cost to Build an App/Platform Like Shipt

The cost to build a grocery delivery app like Shipt depends on several factors, including features, design complexity, and location of the development team.

Factors Affecting the Cost

• Platform Choice: Developing for both iOS and Android requires additional resources, thus increasing costs.

• Features and Functionalities: Advanced features like AI-driven recommendations, advanced analytics, or enhanced security measures will increase the price.

• App Design: The complexity of the app’s design, including UX/UI elements, directly influences development costs.

• Location of Development Team: The geographical location of the grocery app development company can affect pricing. For example, development in the U.S. will generally cost more than hiring a team in Eastern Europe or Southeast Asia.

Steps to Start a Grocery Delivery Business Like Shipt

Starting a grocery delivery business like Shipt requires strategic planning. Here’s a concise guide to get you started:

1. Conduct Market Research:

Understand your target customers’ shopping habits, preferences, and pain points. Analyze competitors to find gaps and opportunities to differentiate your service.

2. Choose a Business Model:

Selecting the right business model is crucial for the scalability and profitability of your grocery delivery service. Below are the key models to consider:

• Multi-Vendor Model

• Inventory-Based Model

• Hyperlocal Delivery Model

• Scheduled Delivery Model

• BOPIS Model (Buy Online, Pick Up In-Store)

3. Choose Right Development Approach:

• Custom Development: Opting for custom development gives you complete control to create a grocery delivery app tailored to your unique requirements. While this approach allows for personalized features and branding, it can be a significant investment of time and money.

• Ready-made Solution: Ready-made software provides an efficient and cost-effective alternative for building a grocery delivery app. Solutions like Growcer are specifically designed to streamline operations for grocery businesses. With over 14 pre-integrated APIs, these platforms handle everything from inventory management to seamless order fulfillment. They come with robust features, including separate apps for buyers and delivery personnel on iOS and Android, enabling businesses to quickly enter the market and cater to a wide customer base.

4. Launch and Market:

Once the app is developed, it’s time to launch. Focus on a targeted marketing campaign through social media, SEO, and paid ads to attract users.

Why Choose Growcer to Build an App Like Shipt?

Growcer is a ready-made grocery delivery software that offers all the features needed to launch a platform or app like Shipt. It is a cost-effective solution that allows you to avoid the complexities and high costs of custom development.

Benefits of Choosing Growcer:

• Customizable Marketplace Solutions

• Support for Multiple Vendors

• Seamless Payment Integration

• Real-Time Order Tracking

• Advanced Admin Panel

• Advanced Mobile Apps

• Scalable for Growing Businesses

Conclusion

Building a grocery delivery app like Shipt provides a profitable entry into the ever-growing online grocery shopping platform industry. By following the outlined steps, selecting the right business model, and leveraging a ready-made solution like Growcer, you can create a platform that not only meets customer expectations but also provides scalability for your business to thrive in this competitive market.

FAQs

Q 1. Why is Growcer a good choice for entrepreneurs starting a grocery delivery business?

Ans. Growcer is a ready-made solution designed specifically for grocery delivery businesses. It helps entrepreneurs save time and money by providing pre-built features, such as multi-vendor management, buyer and delivery apps, and seamless payment integrations. Entrepreneurs can focus on growing their business rather than investing heavily in app development.

Q 2. How does Growcer help entrepreneurs launch their app quickly?

Ans. Growcer eliminates the need for building an app from scratch. With its pre-integrated APIs, customizable options, and user-friendly interface, entrepreneurs can launch their grocery delivery platform in weeks instead of months, accelerating their market entry.

Q 3.. Can Growcer help entrepreneurs target specific regions or audiences?

Ans. Yes, Growcer supports multi-language and multi-currency functionality, enabling entrepreneurs to cater to diverse audiences and expand their business to specific regions with ease.

Q 4. How does Growcer ensure secure transactions for entrepreneurs and customers?

Ans. Growcer integrates secure payment gateways and follows industry standards for data protection, giving entrepreneurs and customers confidence in their transactions.

Q 5. Is Growcer suitable for startups with a limited budget?

Ans. Absolutely. Growcer is a cost-effective solution compared to custom development, making it ideal for startups and small businesses.