How to Build a B2B and B2C Grocery Delivery Marketplace Like Grubmarket

The grocery delivery business has undergone a seismic transformation in the last decade, driven by technology and changing consumer habits. Among the standout innovators is GrubMarket, a San Francisco-based platform that seamlessly blends both B2B (business-to-business) and B2C (business-to-consumer) models. GrubMarket’s approach – connecting local farmers and food producers directly to both end consumers and commercial buyers has redefined convenience, quality, and sustainability in the supply chain.

The online grocery marketplace sector is booming. According to recent industry reports, the market is projected to grow from USD 401.8 billion in 2025 to nearly USD 4 trillion by 2035, with a compound annual growth rate of 25.1%. This surge is fueled by rising internet penetration, urbanization, consumer demand for convenience, and rapid advances in digital payment and logistics technologies.

Building a grocery delivery marketplace like GrubMarket—capable of serving both retail consumers and commercial entities – requires a nuanced understanding of these models, robust technology, and a strategic approach to operations, partnerships, and customer experience.

Understanding the B2B and B2C Grocery Delivery Model

Grocery delivery operates under two key models: B2B (business-to-business) and B2C (business-to-consumer). The B2B model serves businesses like restaurants, retailers, and institutions that require bulk or recurring grocery supplies. It focuses on efficient logistics, inventory management, and supply consistency.

The B2C model targets individual consumers and households, offering convenience, variety, and timely delivery for everyday grocery needs.

Platforms that combine both models, like GrubMarket, can serve a wider audience, increase revenue streams, and optimize operations across the supply chain.

Key Differences Between B2B and B2C in Grocery Delivery

B2B grocery delivery involves supplying bulk orders to businesses like restaurants or retailers, focusing on reliability, customized delivery schedules, and longer sales cycles. In contrast, B2C targets individual consumers with smaller, frequent orders, emphasizing speed, convenience, and a seamless shopping experience tailored for quick decision-making and immediate satisfaction.   

• Customer Type: B2B grocery delivery serves business clients like restaurants, schools, and retailers who buy in bulk for their operations. B2C targets individual consumers shopping for their personal or household needs.
• Order Volume: B2B orders are large and placed in bulk to meet ongoing business demands. B2C orders are smaller, more frequent, and tailored to everyday consumer needs.
• Sales Cycle: The B2B sales process is longer and relationship-focused, often involving negotiations and contracts. B2C sales are quick and transactional, with consumers making fast purchase decisions.
• Decision Process: B2B purchases are planned and based on logical evaluation of price, quality, and reliability, often involving multiple decision-makers. B2C buying is more spontaneous and influenced by convenience, promotions, or personal preference.
• Brand Value: In B2B, trust and strong personal relationships build brand loyalty. For B2C, brand value depends on marketing, user experience, and customer satisfaction to attract and retain shoppers. 

• Customer Support and Service: B2B customers expect dedicated account management, ongoing support, and tailored solutions to meet their business needs. B2C support is more transactional, focusing on quick responses, user-friendly return policies, and general customer satisfaction.
• Technology and Integration: B2B platforms may integrate with buyers’ procurement or inventory systems, enabling automated reordering and supply chain management. B2C platforms focus on intuitive interfaces, real-time tracking, and personalized shopping experiences.
• Focus of Delivery Model: B2B delivery is about building long-term value, trust, and operational efficiency for both parties. B2C delivery is centered on immediate satisfaction, convenience, and a seamless user experience.

What is GrubMarket?

GrubMarket is a technology-driven online marketplace that connects local farmers and food producers directly with consumers and businesses. Founded in 2014 and based in San Francisco, GrubMarket offers fresh produce, dairy, meats, and pantry staples at competitive prices. The platform operates on both B2B and B2C models, supporting bulk orders for businesses and convenient grocery delivery for individuals. By streamlining the food supply chain, GrubMarket helps reduce costs, promotes sustainability, and ensures high-quality products reach customers efficiently.

Success Story of GrubMarket

GrubMarket’s journey is a testament to how innovation, strategic vision, and operational excellence can transform a traditional industry. Founded in San Francisco, GrubMarket set out to revolutionize the way fresh food moves from farms to tables – serving both businesses and individual consumers through a unified, technology-driven platform. Their approach not only disrupted the conventional grocery supply chain but also created new opportunities for local farmers and food producers to reach wider markets.  

By combining a robust B2B and B2C model, GrubMarket has scaled rapidly, expanded its footprint across the United States and globally, and consistently delivered value to all stakeholders. Their focus on technology, supply chain optimization, and customer-centric solutions has set them apart from competitors and established them as a leader in the online grocery delivery marketplace.

Key Factors Behind GrubMarket’s Success:

GrubMarket’s success stems from its innovative technology, strategic acquisitions, and efficient farm-to-consumer supply chain. Its dual B2B and B2C model and rapid expansion have also played a crucial role.  

• Dual B2B and B2C Model: GrubMarket uniquely serves both business clients (like restaurants and retailers) and individual consumers, maximizing market reach and revenue streams.
• Strategic Acquisitions: The company has acquired over 100 businesses, including farms and logistics providers, enabling vertical integration and greater control over the supply chain.
• Nationwide and Global Expansion: GrubMarket operates in all 50 U.S. states and over 70 countries, connecting local producers with a vast network of buyers.
• Technological Innovation: The introduction of tools like GrubAssist AI has automated supply chain management, improved order accuracy, and enhanced financial forecasting.
• Operational Efficiency: By leveraging local farm pickups and direct delivery routes, GrubMarket reduces overhead costs, minimizes food waste, and ensures faster deliveries.
• Sustainability and Local Sourcing: The platform prioritizes partnerships with local farmers, supporting sustainable agriculture and reducing environmental impact.
• Impressive Financial Growth: GrubMarket’s annual revenue soared from $150 million in 2019 to over $2 billion in 2024, with a recent valuation of $3.5 billion.

How the Grubmarket Works: B2B Model

GrubMarket streamlines the wholesale grocery supply chain by connecting food producers directly with business buyers. Here’s how the B2B model operates:  

• Supplier Onboarding: GrubMarket onboards a wide range of suppliers, including farmers, food producers, and wholesalers. These suppliers list their products, pricing, and real-time inventory on the platform, ensuring business buyers have up-to-date access to stock and availability.
• Bulk Listing & Discovery: Registered business buyers—such as grocery stores, restaurants, and meal kit companies—browse a digital catalog, compare suppliers, and place bulk orders. The platform supports negotiation features, allowing buyers to request quotes or special pricing based on order volume or contract terms.
• Order Management & Scheduling: Orders are managed through GrubMarket’s robust backend, which leverages AI-powered tools (such as AI Orders) to automate and streamline order processing. The system converts emails, texts, and voicemails into integrated digital orders, reducing manual errors and speeding up fulfillment.
• Recurring Contracts: Many B2B buyers set up recurring orders or long-term supply contracts through GrubMarket, ensuring predictable revenue streams for suppliers and operational efficiency for buyers.
• Payment & Invoicing: GrubMarket provides flexible, business-friendly payment options, including invoicing, credit lines, and installment payments. Integrated digital payment solutions facilitate smooth transactions and financial management for both buyers and suppliers.
• SaaS for Wholesalers: GrubMarket offers its proprietary SaaS platform, WholesaleWare, to food wholesalers and distributors. This software suite covers financial management, inventory, online ordering, and logistics, further digitizing and optimizing the supply chain.

How the Grubmarket Works: B2C Model

GrubMarket also caters to individual consumers through its user-friendly marketplace. Here’s how the B2C model delivers fresh, local groceries to homes:

• Consumer Onboarding & Shopping: Individual consumers access GrubMarket’s online marketplace or mobile app to browse a wide selection of fresh, locally sourced food products, including produce, dairy, meat, and pantry items.
• Order Placement & Fulfillment: Consumers place orders for home delivery. GrubMarket sources these products directly from local farmers and producers, bypassing traditional grocery intermediaries to offer competitive prices and fresher options.
• Payment Processing: Consumers complete their purchases using GrubMarket’s integrated digital payment system, which supports secure methods such as credit cards and ACH transfers. The platform also provides digital receipts and real-time payment tracking, enhancing transparency and convenience for consumers.
• Delivery & Customer Experience: GrubMarket manages logistics and delivery, ensuring farm-fresh food reaches consumers’ doorsteps efficiently. The company emphasizes sustainability and supports local agriculture through its operations.

Key Features of a Successful Grocery Delivery Marketplace like Grubmarket 

To build a grocery delivery marketplace that can rival GrubMarket, your platform must deliver on both functionality and user experience. Here are the essential features for both B2B and B2C segments:  

• Store Browsing: Enables customers to locate stores based on proximity, offering a personalized and localized shopping experience that increases engagement and satisfaction.
• Multi-Product Cart: Allows users to add multiple items from various stores to a single cart, streamlining the shopping process and facilitating a single checkout.
• Product Filtering: Advanced filters help users quickly find specific products, improving convenience and saving time during the shopping journey.
• Easy Add to Cart: A single-click “Add to Cart” feature simplifies the shopping process, making it more user-friendly and efficient.
• Customer Reviews: Displays store and product reviews, empowering customers to make informed decisions and increasing trust in the marketplace.
• Wishlist: Lets users save favorite products for future purchases, enhancing convenience and encouraging repeat business.
• Route Optimization: Optimizes delivery routes for staff, ensuring timely deliveries and improving overall operational efficiency.
• Auto-Assign Delivery Staff: Automatically assigns orders to the nearest available delivery personnel, reducing delivery times and boosting efficiency.
• Availability Settings: Allows delivery staff to update their availability status, ensuring optimal resource utilization and real-time workforce management.
• BOPIS (Buy Online, Pickup In-Store): Offers customers the flexibility to shop online and pick up orders at a physical store, blending online and offline experiences.
• Multilingual and Multi-Currency Support: Accommodates diverse user bases by enabling shopping in preferred languages and local currencies, expanding market reach.
• Inventory and Catalog Management: Provides robust tools for sellers and admins to manage product listings, inventory levels, and categorization, ensuring seamless browsing and ordering.

Features Comparison: B2B vs B2C

Development Approaches to Build a Marketplace Like GrubMarket

Building a marketplace like GrubMarket requires choosing the right development approach based on your business goals, technical resources, and timeline. The two main approaches are custom development and ready-made solutions.

1. Custom Development

Custom development involves building your grocery delivery marketplace from scratch, tailored specifically to your business model. This includes designing the architecture, developing frontend/backend, integrating APIs, and building unique features. It’s ideal for businesses that want complete control over every aspect of the platform, from branding to functionality.

Pros:

• Fully customized features aligned with unique business requirements.
• Greater scalability and flexibility as the business grows.
• Full control over UI/UX, integrations, and data handling.

Cons:

• High development cost and longer time to launch (6–12+ months).
• Requires ongoing technical maintenance and updates.
• Dependency on a development team or in-house engineers.
• Increased risk if project scope isn’t well-defined early on.

2. Ready-Made Solution

A ready-made solution is a pre-built software solution equipped with all the essential features needed to launch a grocery delivery marketplace. These solutions allow businesses to go to market faster, reduce development effort, and test their business models with minimal risk. They usually support both B2B and B2C use cases with built-in modules for vendors, logistics, and payments.

Pros:

• Fast time-to-market—can launch in weeks instead of months.
• Lower upfront investment compared to custom builds.
• Comes with built-in features and modules (multi-vendor, payments, logistics).
• Support and regular updates usually included by the vendor.

Cons:

• Require initial technical setup.
• The learning curve is quite high, considering the extensive feature set.

Why Growcer Is the Best Ready-Made Solution to Build a Marketplace Like GrubMarket

Growcer is a robust, ready-made grocery delivery software designed specifically for launching grocery delivery marketplaces similar to GrubMarket. It offers rapid deployment, high scalability, and a suite of advanced features that cater to both B2B and B2C business models. With ready-to-use mobile apps for buyers and delivery staff, Growcer ensures a seamless, modern shopping and delivery experience. Its flexibility, customization options, and strong support make it an ideal choice for businesses looking to maximize growth without technical hassles.  

Here’s what makes Growcer the preferred choice:  

• Seamless Customization: Tailor the platform to reflect your brand identity with flexible design and layout options. From color schemes to user interface elements, Growcer makes it easy to create a unique shopping experience.
• Multiple Payment Options: Meet the expectations of modern shoppers by offering diverse payment methods – credit cards, digital wallets, and cash on delivery—ensuring convenience at checkout.
• Real-Time Order Tracking: Enhance customer satisfaction by keeping them informed about their order status every step of the way, from purchase to doorstep delivery.
• Robust Inventory Management: Keep product availability under control with real-time stock updates and alerts. This feature is especially critical for grocery businesses dealing with perishable items.
• Integrated Delivery and Logistics: Plan efficient delivery routes and ensure timely dispatches with built-in logistics tools. Whether using your own fleet or third-party couriers, Growcer simplifies the entire delivery cycle.
• Advanced Analytics and Reporting: Make data-driven decisions with comprehensive reports on sales performance, customer behavior, product trends, and more—helping you identify opportunities for growth and optimization.

Some of the other USPs of Growcer are:   

• Self-hosted software
• 100% White-Label
• GDPR Compliant
• Fully Customizable & Scalable
• 1 Year of Free Technical Support
• Lifetime license, one-time fee
• Offers Buyer & Delivery Partner Apps (Android & iOS)
• In-Built Marketing Features
• Complete source code ownership

Explore the different dashboards and experiences Growcer offers through its interactive demos:

• Front-End Demo
• Admin Panel Demo
• Buyer Dashboard Demo
• Seller Dashboard Demo

Conclusion

In summary, building a successful grocery delivery marketplace requires a clear understanding of the distinct needs of both B2B and B2C customers. Focusing on features like seamless product discovery, efficient order management, and reliable delivery is essential. Selecting the right development approach – whether custom or ready-made – depends on your business goals, budget, and timeline. As the demand for online grocery shopping continues to grow, creating a user-friendly, scalable, and efficient platform will position your marketplace for long-term success in this competitive industry.  

FAQ’s

Q1. How does a grocery delivery marketplace generate revenue?

Ans. A grocery delivery marketplace earns revenue through multiple channels. Primarily, it charges vendors a commission on each sale. Additionally, delivery fees paid by customers contribute to income. The platform can also offer subscription plans for premium services, sell advertising space, and provide paid premium listings to suppliers or stores for better visibility.  

Q2. How long does it take to launch a grocery delivery marketplace?

Ans. The timeline varies based on the development approach. With a ready-made solution, you can launch your marketplace within a few days as most features are pre-built and require minimal customization. However, if you opt for custom development, it may take several months depending on the complexity and specific features you want to include.  

Q3. Is it better to build a grocery delivery platform from scratch or use a ready-made solution?

Ans. Choosing between custom development and ready-made solutions depends on your budget and timeline. Custom-built platforms offer greater flexibility and can be tailored exactly to your needs but are more expensive and time-consuming. Ready-made solutions like Growcer are quicker to deploy, cost-effective, and come with essential features out of the box, making them ideal for faster market entry.

Q4. Can I customize Growcer to fit my brand and business model?

Ans. Yes, Growcer is designed to be highly customizable. You can tailor the platform’s design, features, and workflows to align with your brand identity and specific business requirements, ensuring a unique marketplace experience for your users.