Fix These 3 Small Issues to Grow Your On-demand Grocery Delivery Startup like Instacart

ondemand grocery delivery

This blog is for those entrepreneurs and startups who are running on-demand grocery delivery business and want to create delivery apps. Here, we’ve compiled three small issues, which you can resolve to grow your grocery business like Instacart.

Indeed, e-shopping has dominated the retail sector. In 2017, retail e-commerce sales worldwide amounted to 2.3 trillion US dollars, and e-retail revenues are projected to grow to 4.48 trillion US dollars by 2021 worldwide. Well, online shopping is one of the most popular online activities worldwide. In addition, e-shopping has raised a revenue of approximately $120 million. However, there is a strong foothold in the market. In some ways, it was initially started by Spoonrocket, a startup company based in Berkeley, California. The startup was delivering a selection of comfort foods right from users’ door in under 15 minutes.

Online grocery shopping sales in the U.S.

According to the report, “Online grocery shopping sales in the United States is estimated to reach 29.7 billion U.S. dollars by 2021”.


Talking about the latest growth statistics from the latest report from eMarketer of grocery delivery apps, which are experiencing considerable growth in the United States, “Grocery delivery apps have shown almost 50% increase in use comparatively last year.”

Furthermore, over 18 million adults in the U.S. will use a grocery app at least once a month in 2018. And, it will be improved more in the next year i.e. 2019 where one in 5 adults will use a grocery app to order grocery items.

We can’t forget to mention about the app like Uber grocery delivery Goliath called Instacart. According to the latest report, “The grocery delivery startup Instacart has raised a fund of $600 million in funding round at a total $7.6 billion valuation”. Well, Instacart and other local delivery apps connect local restaurants and stores with customers. Instacart app has already hit the market and already become a unicorn.


In addition, as per the latest report from Crunchbase news, “The Goliath, Instacart has raised $271 million in Series F round of funding, led by Tiger Global Management.” And, the total funding amount is $1.9 billion. Talking about Instacart’s alcohol delivery, it is now available in 14 states, including California, Florida, North Carolina, Ohio, Texas, Virginia, Washington, Washington, D.C., Massachusetts, Minnesota, Missouri, and Kentucky.

So, herein, we are going to discuss the small issues in order to grow your on-demand grocery delivery startup like Instacart. Being a grocery delivery startup, you just need to keep an eye on the following issues, let’s have a look!

Resolve These 3 Small Issues Grow Your On-Demand Grocery Delivery Startup Like Instacart

1. Payment Options

Apps like Instacart offer a personalized experience to app users. It delivers groceries to people at their doorstep by sending a personal shopper within an hour.

In the app like Uber delivery app for grocery, it is important to provide different payment options to your customers because every app user may have different preferences while shopping online. Accepting mobile payments is a must for businesses whether by accepting credit cards in the field or by letting app users pay on-site with the smartphones. It is important to figure out which mobile payment technology is right for your business.

Basically, there is a number of payment methods such as credit cards, bank transfer, Electronic fund transfer, Apple Pay, Digital Wallet, Net Banking, Amazon Pay and Prepaid. From all these payment methods, you can select the most used ones.

So, providing with diverse payment options to users can simply provide convenience. And, people are more likely to interested in using those services where they are not bounded with limited options. So, providing multiple payment options is one of the major things, which startup companies need to resolve in case if they are missing it in their app.

Also, online payments provide security and convenience. And diverse payment method options provide your business a cheaper, faster, and reliable way to do business.

2. Categorization of Products

If you are running a grocery business and planning to create one of successful grocery delivery apps, then there is one simple thing that you as a startup need to work into is to categorize the products.

By doing so, it will simply increase your online store’s performance through better online grocery shopping product categorization. You might be aware of the fact that if customers are unable to locate the products as what they are looking for on the online stores, then they would not visit the store again for the next purchase.

In addition to this, offering more products to online stores can churn out the revenue. However, the same holds true for product information, too. The better the product categorization, the more traffic it will bring and influence the store’s revenue in a big way.

The term “Product categorization” often overlooked, but it allows online stores to increase traffic. More categories mean an increase in the number of users. So, in order to develop an accurate and well-organized product category, understand how your users will search for the products and determining the characteristics of the product as it is critical.

The information gained is used to define product categories and subcategories that are incremental in bringing traffic and improving conversion rate. If it sounds critical to you, then you need to check out the following points:

  • The Accurate Product Categorization: It ensures that all the products in your online store are correctly categorized and are placed according to the product attributes.
  • Smart categorization: It determines the correct product type for each SKU (Stock Keeping Unit). It will also helpful for both you and your online customers.
  • New Product Categorization: The individual review of every new product can allow app users to try the new ones.

Therefore, if you are developing mobile app under the category groceries on demand, then you as a startup needs to consider this issue very closely to grow business.


Image Source: Instacart

3. Faster & Convenient

In the digital age, time is an important commodity. Ordering groceries online not only saves us a trip back home carrying shopping bags but also raises our expectations in terms of the overall quality of the experience.

To perform a task faster means you are providing convenience to your customers as what they expect from online shopping. Convenient involves better shopping experience along with huge time savings. Furthermore, it also includes discounts, which can delight your customers a lot.

For instance, Instacart business model might seem a simple one, but that is the brilliance of it. As it enables buyers to order fresh product at the time they want it.

So, apps like Instacart are popular among its users due to its fastest, convenient, and on-demand solutions. Today, digital is changing grocery shopping patterns. Globally, people buy less, more frequently, and impulsively, and they are embracing groceries as fast and convenience shopping.

Furthermore, in the below image, you can see that most customers have a better experience online than in store as they can get to the desired items quicker.


Image Source: Instacart

So, we’ve collected some pivotal points by which you can provide your online grocery customers a fastest and convenient shopping experience.

Offer same-day delivery: To become a successful online grocery Goliath like Instacart app, you can integrate a logistics infrastructures from third-party operators. So, that you as a startup company can provide same-day delivery service for your online impulsive buyers. However, new customers generally prefer to buy smaller baskets more frequently. It is pivotal your customers get it now. Hence, there is no need for investing in owned large vans, if the fleet of scooters can do the job better.

Engage with customers: New users seek convenience, both experience and price wise. Established business owners should leverage brand equity and marketing budgets in order to provide great quality and a wide selection of products, together with targeted promotions. As customers move to when-needed shopping, retailers may consider offering delivery passes, so be more competitive than both app users and discounters.

Streamline Experience: It also ensures a seamless experience for customers. Store pickers must assemble online orders right from the stores by scanning the products and handling them over to drivers. In this way, the users get online grocery delivery quickly.

Winning grocery players need to adopt business models that provide customers with the most seamless, fastest and convenient experience while keeping infrastructure costs slow.

Wrapping Up

Developing on-demand grocery delivery or grocery shopping app like Instacart, it requires you as a grocery startup to deal with the small issues and resolve them in order to establish a successful business model like Instacart. Also, it may seem like a challenge, but developing an app for delivery has an underserved market, which has the potential for you to scale business and get outstanding results.

In case, if you still have any query or confusion regarding on-demand grocery delivery app development or development cost of grocery shopping app, then you can get in touch with us through the below-given form as we’re a leading mobile application development company, and have developed over 3500 mobile apps in the diverse categories. One of our sales representatives will revert to you as soon as possible. The consultation is absolutely free of cost.

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This page was last edited on April 30th, 2020, at 2:06.


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