Cost to Build a Grocery Delivery App Like Tesco

The grocery retail landscape has undergone a seismic shift, and at the heart of this transformation is the grocery delivery app. In 2025, it’s no longer just a convenience; it’s a critical component of a grocery retailer’s strategy. This isn’t just about adapting to a post-pandemic world; it’s about meeting the evolving demands of a new generation of consumers who prioritize speed, personalization, and seamless digital experiences.

For aspiring entrepreneurs and established grocery chains alike, the question isn’t whether to go digital, but how. The gold standard for many is a platform that offers the convenience and scale of a market leader like Tesco. With a reputation for robust technology and a massive customer base, Tesco’s app represents a benchmark for functionality and user experience. But what does it really take—and what does it truly cost—to build a grocery delivery app that can compete with such a giant? This article will provide a detailed breakdown, exploring the costs, features, and strategic decisions involved in creating a powerful grocery delivery platform. A key factor in this journey is understanding the nuances of the grocery delivery app development cost.

What is Tesco? 

Tesco is more than just a supermarket; it’s a multinational retail behemoth and a household name in the UK. Founded in 1919, the company has grown from a simple market stall to one of the world’s largest retailers. Its success is built on a massive network of physical stores, but its future is increasingly tied to its digital presence. The Tesco grocery delivery app is a sophisticated extension of this brand, offering customers the ability to shop for thousands of products from the comfort of their homes. It’s a prime example of a successful digital transformation, blending traditional retail strengths with cutting-edge technology to offer a seamless omnichannel experience.

Tesco’s Business Model and Revenue Streams

Tesco’s business model is a masterclass in modern retail, and its revenue streams are a blend of traditional sales and innovative digital strategies. The core of its model is its vast network of physical stores, which serve as both distribution hubs and brick-and-mortar touchpoints. However, the online grocery app plays a crucial role in amplifying this model by:

• Retail Sales: The primary revenue stream comes from the direct sale of groceries and non-food items through the app. The app effectively acts as a digital storefront, expanding its market reach beyond the immediate vicinity of its physical stores.
• Delivery Fees: Customers are charged a delivery fee for their orders, which varies based on the delivery slot, time, and order size. This helps to offset the significant logistical costs associated with a home delivery service.
• Tesco Clubcard and Loyalty Programs: The Clubcard is a cornerstone of Tesco’s strategy. By offering points, exclusive discounts, and personalized offers through the app, the company encourages repeat purchases and fosters deep customer loyalty. This data is also invaluable for marketing and inventory management.
• Click & Collect Service: A key feature of the app, Click & Collect allows customers to order online and pick up their groceries from a designated store location. This service caters to a different consumer preference and further optimizes Tesco’s existing infrastructure.
• Supplier and Advertising Partnerships: As a leading platform, Tesco can generate revenue by offering prime digital real estate to suppliers for sponsored product listings and in-app promotions, creating an additional income stream.

Must-Have Features to Build an App like Tesco

A successful grocery delivery app isn’t just about a good-looking interface; it’s about a robust set of features that address the needs of all its users: customers, delivery drivers, and administrators. To build a grocery delivery app like Tesco, you must think in three parts:

Customer App:

This is the front end, the user’s window into your digital store. A seamless and intuitive experience is paramount here.

• User Registration & Profile Management: A simple and secure way for users to sign up, manage their account details, and save addresses and payment information.
• Intuitive Product Catalog & Search: Users need to easily browse categories, search for specific items, and filter results by price, brand, or dietary needs. A powerful search function with suggestions is non-negotiable.
• Shopping Cart & Seamless Checkout: The ability to add and remove items, adjust quantities, and proceed to a fast, secure checkout process is fundamental.
• Multiple Payment Gateways: Offering diverse payment options, including credit/debit cards, digital wallets, and sometimes even cash on delivery, is crucial for market penetration.
• Order Tracking and History: Customers should be able to see the real-time status of their order, from the moment it’s placed to its delivery. They should also be able to review past orders for easy re-ordering.
• Push Notifications: A vital tool for communication, sending alerts for order updates, new promotions, and personalized discounts.
• Ratings & Reviews: A system that allows customers to rate products and delivery experiences builds trust and provides valuable feedback.
• Personalized Recommendations: Using AI and machine learning to suggest products based on past purchases or Browse behavior dramatically improves the user experience and increases sales.

Admin Panel (Web Dashboard):

This is the control center for your business, where you manage all operations.

• Dashboard & Analytics: A comprehensive overview of key metrics like sales, revenue, popular products, and customer behavior to inform business decisions.
• Product & Inventory Management: The ability to easily add, edit, or remove products, manage stock levels, and set pricing.
• Order & Delivery Management: A centralized hub to view, process, and assign orders to delivery drivers. This should include features for rescheduling and order cancellation.
• User & Vendor Management: Tools to manage customer accounts, and for a multi-vendor model, to onboard and manage different sellers.
• Discounts & Promotions: An easy-to-use system to create and manage coupons, loyalty programs, and special offers.

Delivery Driver App:

This is the on-the-road tool for your delivery team, designed for efficiency and speed.

• Driver Profile & Status: A dedicated profile for each driver to manage their availability and track earnings.
• Order Notifications & Acceptance: Drivers receive real-time alerts for new delivery requests and can accept or reject them.
• GPS & Route Optimization: An integrated map with optimized routes to ensure the fastest and most fuel-efficient delivery path.
• In-App Communication: The ability for drivers to call or message customers directly for delivery-related queries.
• Proof of Delivery: A feature to confirm delivery with a digital signature or photo, ensuring a secure and transparent process.

Different Approaches to Build a Grocery App Like Tesco

When it comes to building a grocery delivery app like Tesco, businesses typically have two main approaches: custom development or choosing a readymade marketplace software. Each approach has its own advantages, costs, and timelines. Understanding these can help you choose the best fit for your business goals.

1. Custom Development

Custom development involves building your grocery delivery app from scratch. This approach allows full control over the design, features, and functionality of your app.

Advantages:

• Tailored Features: You can implement unique features specific to your business model.
• Scalability: The app can grow alongside your business, with room for new modules and updates.
• Brand Identity: Complete control over UI/UX ensures a distinct brand presence.

Considerations:

• Higher Costs: Custom development can be more expensive than using ready-made solutions.
• Longer Development Time: Building an app from scratch may take several months.
• Requires Skilled Team: You need experienced developers, designers, and testers.

2. Readymade Marketplace Software

Readymade or white-label grocery marketplace software is a pre-built solution that you can customize and launch quickly. Readymade whilelabel grocery software like Growcer offer features similar to Tesco, such as product catalogs, payment gateways, and delivery management.

Advantages:

• Faster Launch: Pre-built features reduce development time significantly.
• Lower Costs: Typically more affordable than building an app from scratch.
• Ongoing Support: Most software providers offer regular updates and technical support.

Considerations:

• Limited Customization: While some features can be modified, you may face restrictions compared to a fully custom app.
• Dependence on Vendor: Future updates and scalability may depend on the software provider.
• Branding Limitations: Certain UI elements may be standardized across users of the platform.

Cost Comparison: Custom Development vs. Readymade Solution

When embarking on grocery delivery app development, the most significant decision you’ll face is whether to build a custom solution from scratch or to leverage a readymade platform. The choice has profound implications for your budget, timeline, and long-term scalability. The grocery delivery app development cost is a crucial factor to consider.

Custom Development: 

Custom development involves building a unique grocery delivery app from scratch, tailored to your exact specifications. This path involves hiring a team of developers, designers, and project managers to build a unique app tailored to your exact specifications. While this offers complete control and scalability, it comes with a high price tag, often ranging from $50,000 to over $200,000. The development timeline is also extensive, typically taking 6-12 months. Additionally, you are responsible for ongoing costs such as maintenance, updates, and server fees.

Readymade Solution: The “White-Label” Approach

A readymade solution is a pre-built, fully functional grocery delivery platform that you can customize with your branding, logo, and content. It’s often referred to as a “white-label” solution. This category is further divided into two models: SaaS and Self-Hosted.

• SaaS (Software as a Service): This model operates on a subscription basis. You pay a monthly or yearly fee to use the platform. While this offers the quickest time-to-market and a low initial investment, you never own the software or the source code. Your business is tied to the vendor, and your data is stored on their servers. Over time, these recurring costs can far exceed a one-time purchase.
• Self-Hosted: This is the most compelling option for a startup or an existing business looking for a powerful, cost-effective solution. You make a one-time purchase of the software license and its source code. You host the application on your own server, giving you complete lifetime ownership. You get the speed of a readymade solution with the long-term control and flexibility of a custom build.

Custom vs. SaaS vs. Self-Hosted: A Comprehensive Overview

Growcer: A Cost-Effective Readymade Software Solution

For businesses aiming to launch a professional-grade grocery delivery app without the prohibitive grocery app development cost and time of custom development, a platform like Growcer stands out as a powerful and highly cost-effective alternative..

Growcer is a self-hosted, white-label grocery marketplace solution developed by FATbit Technologies. It offers a feature-rich, scalable platform that can be launched in a matter of weeks, not months. The key benefits that make it an excellent choice, especially for those looking to emulate a model like Tesco, include:

• One-Time Payment & Lifetime Ownership: Unlike the recurring fees of a SaaS model, Growcer’s self-hosted solution is a one-time purchase. This means you own the platform and its source code for life, eliminating ongoing subscription costs.
• Comprehensive Feature Set: Growcer comes packed with all the essential features for customers, delivery agents, and admins, mirroring the functionalities of an app like Tesco. From intuitive search and multi-vendor management to advanced analytics and route optimization, it’s a complete ecosystem.

👉 Explore the full feature list of Growcer here.

• Readymade Mobile Apps for Android & iOS: Growcer includes fully developed, white-label mobile apps for both Android and iOS platforms, allowing businesses to instantly offer a seamless mobile shopping experience to customers and streamline operations for vendors and delivery personnel.
• Full Customization and Scalability: Because you own the source code, you have the freedom to customize the platform to fit your brand identity and business model. You can add new features and integrations as your business grows without being restricted by a vendor’s limitations.
• Multi-Vendor Capability: Growcer is built to handle a multi-vendor marketplace, allowing you to onboard multiple grocery stores or even small-scale farmers, creating a powerful, diverse marketplace akin to an aggregator model.

This combination of speed, ownership, and comprehensive features makes a solution like Growcer a strategic choice for businesses that want to launch a powerful platform quickly and affordably while retaining full control over their long-term growth. It’s the perfect way to create a grocery delivery app with a professional edge.

Conclusion: Choosing the Right Approach to Launch Your Grocery App

The decision to build a grocery delivery app in 2025 is a move toward a profitable future. However, the path you choose will define your journey. Custom development offers unparalleled flexibility but comes with a massive price tag and a lengthy timeline, making it a viable option only for large enterprises with a significant budget.

For startups, mid-sized businesses, and even established grocery chains looking to rapidly expand their digital footprint, a readymade, self-hosted solution like Growcer offers the best of both worlds. It provides the speed and affordability of an off-the-shelf product with the long-term control and scalability of a custom-built solution. By choosing a platform like Growcer, you can launch a professional, feature-rich app that rivals the functionality of market leaders like Tesco, but with a fraction of the cost and in a fraction of the time. In the end, the right approach is the one that aligns with your business goals, your budget, and your vision for long-term growth.

FAQs

Q 1. How long does it take to build an app like Tesco?

Ans. A custom-built app with a feature set similar to Tesco’s can take anywhere from 6 to 12 months or even longer. This includes discovery, UI/UX design, development, testing, and deployment. However, a readymade, self-hosted solution like Growcer can be launched in a matter of days to a few weeks, as the core technology is already built and just requires branding and configuration.

Q 2. Can I scale a readymade solution later?

Ans. Yes, you can absolutely scale a readymade solution, especially a self-hosted one. Since you own the source code, you have the flexibility to add new features, integrate with third-party services, and upgrade your server infrastructure as your business grows. This gives you the freedom to evolve your platform without being locked into a vendor’s specific limitations or pricing tiers.

Q 3. What are the must-have features for a grocery delivery app?

Ans. The must-have features are divided into three user categories. For customers: an intuitive product catalog, secure checkout, multiple payment options, and real-time order tracking. For the admin: a comprehensive dashboard for inventory, order, and user management. For delivery drivers: route optimization, order notifications, and a status update system. To build a grocery delivery app that is successful, these features are essential.

Q 4. Is Growcer suitable for startups?

Ans. Yes, Growcer is an excellent choice for startups. Its one-time payment model and fast deployment time significantly reduce the initial capital expenditure and risk associated with launching a new business. It allows startups to enter the market quickly, validate their business model, and then scale their platform as they gain traction, all without the burden of recurring fees.