Grocery Delivery App Development: 3 Lessons from GrubMarket

This article comprises information for startups and entrepreneurs. If you want to create an on-demand grocery delivery app, then you need to check out three important lessons from GrubMarket that will help you during grocery delivery app development. Let’s check out what’s inside?

As technology advances, the grocery delivery sector has become broader. Today, consumers have also become more concerned about the food they eat. There is a wave of grocery startups that have emerged with a lot of convenient alternatives. Undoubtedly, the market is filled with the huge competition after the emergence of a number of grocery startup companies.

If we’re talking about the “organic grocery”, then we can’t forget to mention the name “GrubMarket”, which has created a buzz with its organic food delivery via the mobile app. According to the latest report from TechCrunch, “GrubMarket app gobbles up $32M that led by GGV for its healthy grocery ordering and delivery service.”


Image Source: grubmarket

GrubMarket: A Grocery Delivery App

There is a number of grocery delivery startups, which claim to be different. But, the real question is – what does make GrubMarket different? GrubMarket sources organic and healthy food directly from producers and delivers it to businesses as well as consumers at a discount of 20-60% over other channels. Let us know more facts about the GrubMarket app.

Insights: Some Facts About The GrubMarket

  • Founded in 2014 by Mike Xu, GrubMarket is based in the San Francisco Bay area.
  • Total funding amount: $32.1M
  • GrubMarket is more than an app for grocery “delivery service”, but it is a big marketplace as it supports local farmers as well as food markets.
  • The GrubMarket app serves both the sellers (like fishers, local farms) and the customers.
  • It works in different counties in the U.S, including Santa Clara, San Diego, San Francisco Bay Area, Los Angeles, Orange County, Contra Costa, San Mateo, and Alameda.
  • According to the GrubMarket’s official blog, “The GrubMarket has selected as “App of the day” in the Apple App Store.”

Let’s check out some important lessons that startups and entrepreneurs can learn from the GrubMarket before building a successful on-demand grocery delivery app.

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3 Important Lessons Learned from GrubMarket Before Developing a Successful Grocery Delivery App

  1. A Radical Business Model

    There are a number of grocery delivery companies, who claim to deliver the groceries via a mobile app. However, being a grocery startup, if you want to succeed and become one of the successful grocery delivery companies, then you need to be careful about your business model. Keep in mind – a radical business model that helps you to achieve great results.

    As long as the grocery market is concerned, consumers are more concerned about what they eat. Their tendencies actually shift to pick “organic” foods and vegetables only. This is what consumers are looking at the most when it comes to grocery shopping.


    However, an app for delivery, GrubMarket has analyzed it and nicely put this into action. The grocery app has implemented the idea that works for their users, and offer the service in terms of the app, which delivers only “fresh & organic” foods to customers. Here are a few key points that make GrubMarket a radical business model:

    • GrubMarket supports local farmers and food markets.
    • Products are fresh and organic.
    • It delivers cheaper than the traditional grocery store.
    • Convenience as it does home and office deliveries.

    Furthermore, the app like GrubMarket is based on two things, which make it different from others. First, it is totally free for the sellers. The second thing is that it works on B2B (Business to Business) activity, which is profitable, where the grocery delivery startup deals directly with the restaurants, schools, and companies rather than individual consumers.

    Thus, being a startup, if you also want to support local market and wants to deliver healthiest, fresh and organic food and vegetables to the doorstep of your customers, then it is a high time to build organic grocery app.

  2. Competitive Pricing

    Another important lesson is about the pricing structure. Also, we can say that competitive pricing is behind the success of GrubMarket. This is why we are saying this as the GrubMarket company claims that the app is competitive with the pricing structure and being 50% less or cheaper than the online grocery apps.

    However, the important lesson, which startups can learn from GrubMarket is it is important not to compromise on the quality of food, grocery, and delivery services if it is the low pricing structure. Moreover, the company cut the cost for grocery items for delivering better and quality product and service.

    Image Source: grubmarket

    If you have ever thought of building a grocery app that makes fresh and organic food accessible to everyone, then the competitive pricing structure plays an important role to get succeed.

  3. The Evolving & Unique Approach

    The organic food delivery approach was itself new when the app was launched initially. The GrubMarket app focuses on serving less exclusively to high-income consumers than other organic food delivery startups. This approach separates GrubMarket from other companies and allows these local startups to succeed. The other thing to grow your business is that startups need to embrace evolving and unique approach while developing the app for grocery delivery.

    Image Source: techcrunch

    GrubMarket app also allows its partners to manage the logistics of the business in an efficient way. The app is also working to bring AI (Artificial Intelligence) to the grocery app, for example, to be able to run better modeling to figure out how much fruit and veg might sell during a particular season and how to price items.

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    So, if you are planning to build an on-demand grocery delivery app, it is important to have an evolving and unique approach, which makes your grocery delivery app stands out from others.

What’s Your Idea on Creating a Grocery Delivery App?

You might be knowing that the category “food” has the largest and biggest opportunity in e-commerce. In addition, the total value for the global food and agriculture industry is around $9 trillion ($8 trillion in 2017) till date. So, there are big opportunities for grocery startups to flourish and get huge success in the market like GrubMarket application.

In the United States, grocery delivery apps are one of the fastest-growing niches. According to the latest report from eMarketer, grocery delivery apps have shown the almost 50% increase in use over 2017.

If we’re talking about the growth forecast, “Over 18 million adults in the United States will use a grocery app at least once in a month in 2018, which will be up 49.6% over last year.” It will be improved more in 2019, where one in 5 adults will use a grocery app to order grocery items.

So, being a startup, if you have got an idea on developing mobile app under the “grocery delivery” category, then you can cross-verify it with us as we are a mobile application company and have already developed over 3500 mobile applications of diverse categories.

In case, if you still have any query or confusion on on-demand delivery service apps development, the cost of developing an app for grocery shopping, how long does it take to make an app for groceries, grocery app development cost in India, then you can get in touch with us through the below-given form. One of our sales representatives will revert to you as soon as possible. The consultation is absolutely free of cost.

Author Bio
Bhaval Patel
Bhaval Patel
Designation: Director (Operations)

Bhaval Patel is the Director (Operations) at Space-O Technologies. He has over 20 years of experience in business management and sales. He has expertise in taxi booking app solutions and on-demand applications. Under his guidance, Space-O has developed 50+ Uber-like taxi apps on both iOS and Android platforms.