How Much Does It Cost To Build a Grocery Delivery App Like Instacart?

Cost To Build a Grocery Delivery App Like Instacart

In a world of speed and convenience, grocery delivery apps have rewritten shopping rules. These apps allow users to procure essentials without stepping into a store and deliver awesome efficiency. Instacart is one name that comes to mind when you think about such apps; it has an almost synonymized stature regarding reliability and speed in grocery delivery. But creating something like Instacart could be a tall order. And just how much would it cost to create such an app? Here, we get into the nitty-gritty of how to develop a grocery delivery app, including its cost and features where your creation could compete with the big boys such as Instacart. Whether an entrepreneur, aspirant, or just curious about app development, this guide will help with the financial perspective for creating a grocery delivery app.

What is a Grocery Delivery App?

An app for Grocery Delivery is a mobile application or platform for grocery ordering from an online portal to get a doorstep delivery service. These applications will allow anyone to conveniently buy and receive groceries, including all products from fresh fruits to pantry staples, beverages, and household items.

What is Instacart?

Instacart is an online service for grocery delivery and pharmacy services that American Services founded. They have developed a platform through which customers can either download an application or visit a website to link up with their personal shoppers from different local stores to deliver all the required groceries. Instacart facilitates shopping online for groceries, household items, and other needs from all the connected supermarkets, speciality shops, and pharmacies.

How to Develop an App Like Instacart?

Developing a grocery delivery app like Instacart is an entirely long project, starting from initial planning through maintenance following launch. Here’s an in-depth guide providing insights into the process and the costs involved.

1. Market Research & Planning

Identifying Your Target Audience: Who are the potential users of their everyday shopping habits, and what would most probably become their pain points? Understand it well so that your app can be uniquely tailored to them.

Competitor Study: Think of grocery delivery apps like Instacart, Amazon Fresh, or Shipt, and put your mind into reviewing what is already out there. Delve into the demo features; check out strengths and weaknesses besides customer reviews to know what works and what does not.

Understand Your Unique Selling Proposition (USP): This will be identified by the reasons why it differs from customers’ competitors, such as unique features, better service, or exclusive relationships with local stores.

Choosing a Business Model: Have you thought about will it be delivery charges, a commission from the stores, a subscription process, or any combination of the three?

2. Designing the User Interface (UI) & User Experience (UX)

Wireframing: Create a wireframe to depict the structure and layout of your application. This is going to be a blueprint for your app.

Prototyping: Prototype the app functionally and in terms of the user flow. This helps with early testing and feedback.

Design: Aesthetic, intuitive, and easy to use. Focus on convenient navigation, quick access to features, and quick, seamless shopping. This entails designing icons, buttons, menus, and other items that can be classified as user interface components.

3. Backend Development

Database Management: Establish a solid database to store user data, product details, order information, etc. Choose the best technology database (SQL, NoSQL) to meet your requirements.

Server Setup: Create safe and scalable servers for managing application requests and data processing. Consider using cloud services such as AWS, Google Cloud, and Azure.

API Integration: Integrate required features through APIs such as payment gateways (Stripe, PayPal), maps (Google Maps), notifications, and third parties (for example, product catalogues and delivery services).

4. Frontend Development

App Development: Development of the app front end in technologies like React Native (for cross-platform development), Swift (for iOS), or Kotlin directly for Android.

User Authentication: Implement User registration, log-in, and profile management functionalities. Secure authentication methods like OAuth, JWT, or social logins should be supported.

Product Catalog: Develop features to browse and search for products, add items to the cart, and place orders. Implement filters and sorting options as well as product details pages.

Real-time Tracking: Provide a facility for real-time tracking of the orders, along with the status and estimated delivery time shown therein.

5. Testing and quality assurance (QA) 

Functional Testing: Test all its functionalities in an application to ensure that all the work is performed properly. User flows, product searches, and the checkout process, along with the notifications, all have to be included.

Performance Testing: It validates the entire performance of the app in various conditions like heavy traffic and low bandwidth conditions.

User Testing: This involves running a user test that gathers feedback on the app’s usability and highlights major problems. This can also be A/B tested to compare designs and features.

Bug Fixing: Fix the bugs and issues found during testing; thus, it is an iterative process that ensures the reliability and usability of the app.

6. Deployment & Launch

App Store Submission: Submit to application stores like Play Store and Apple App Store after the app is created while adhering to their guidelines and policies.

Market & Promotion: Compose a marketing plan to encourage and entice users to download the application. This can include social media marketing, collaborative influencers, paid media, and content production.

Launch: Advertise and disclose the application to the world while keeping tabs on it. Collect early feedback, perform analysis, and make appropriate corrective measures.

7. Maintenance & Support

Update Progress: Update the app continuously to fix nearness and performance improvement. It should be a constant post on user feedback and changes in the industry.

Customer Support: Provide true support to the user-facing and concerning the issue on that person. This can involve a help desk, live chat, or email support.

Additional Considerations

Cost Estimation: Encompass costs into developmental activities such as design and marketing and development and testing activities. The costs can vary based on how complicated the features are, the technology stack being used by the organization, and the site and expertise of the developer.

Scalability: Design the application to handle an increasing number of users and orders within an organization. Future scalability will involve the adoption of microservices architecture based on scalable infrastructure.

Security: Implement all security measures to safeguard user data and transactions. This includes the use of encryption, secure APIs, and compliance with various regulations such as GDPR or CCPA.

Features to Be Carried on the App

Customer App:

User Registration & Login: Sign up and log in using your email, phone number, or social media accounts. Simple.

Product Browsing & Searching: Generic search and a bunch of filters and categories can help you identify products swiftly. 

Shopping Cart: A familiar and easy shopping cart to manage selected items and see their total amount at checkout.

Ordering: Simple, Secure checkout and many modes of payment.

Real-Time Order Tracking: Learn status and location Orders in real-time.

Notifications: Push notifications for every update in orders, generous offers, and specials.

Reviews & Ratings: Let customer rate their products and offer some insights.

Order History: Know past orders and reorder favourite items.

Customer Support: Access to help and support for any issues or questions.

Grocery App Admin Panel:

Dashboard: A complete overview of orders, customers, and analytics in terms of sales.

User Management: For consumer and vendor profiles.

Product Management: Add, update and make product categories related to the products.

Order Management: Track and monitor current and completed orders.

Inventory Management: Monitors all stock levels, updates inventory, and records how much is sold from each category.

Report & Analytics: Provides detailed reports regarding sales and consumer behavior on other metrics.

Promotions & Discounts: Create and manage promotional or discount offers.

Delivery Boy App:

Registration & Profile Management: Register and manage profiles of delivery personnel.

Order Alerts: Get notifications for new deliveries assigned.

GPS Navigation: Integrated maps to navigate easily to the destination of delivery.

Order Management: View and manage all deliveries assigned.

Earnings Tracker: Keep track of earnings and payment history.

Customer Communication: Reach customers for queries on deliveries.

Order History: Look into old deliveries for reference.

Vendor Panel: 

Registration and Profile Management: Vendors can register and maintain their profiles. 

Product Management: Adding, Updating, and Categorizing Products. 

Order Management: To monitor and manage orders received from customers. 

Inventory Management: To keep track of the stock level and update it. 

Payment Management: To view and manage the payments received. 

Reports and Analytics: Generate reports on sales, customer preference, and many other metrics. 

Offers and Discounts: Create and manage special offers and discounts for customers.

So, How Much Does It Cost To Build a Grocery Delivery App Like Instacart? 

All that being said, we can roughly say that creating an app like Instacart would require approximately of $62000 in your wallet. This can rise based on the number of additional features and developments you want to use. 

Let’s put it this way. You’re going to need $2000 for the technical documentation part alone. And then, you’re going to need another $4000  for testing and then another $3000 for the designing. 

And then, once done, you will be spending about $2000 or more for the front and back end. So we hope this explains it all? 

And this can only increase as you build on better features to improve the look and feel of the app. And then, again, there is the kind of app development company that you choose to work with. 

Of course, the cost to create an app in a way also depends on the world one is. So, perhaps for someone in Asia, it would cost less than an app that gets developed in a country in Europe or America. 

What Technology Does Instacart Use?

Let’s face it! On-demand grocery delivery app development is the need of the hour today. It makes people’s lives easy in a lot of ways. However, their success mainly depends on a lot of factors, after all, you are trying to build an app like Instacart.

Easy navigation, options for customization, user experience, and space for review and feedback are just some of the many things you have to keep in mind. 

While all this may be overwhelming at first, one way to do it (and we are sure that most of you are already doing it) is by learning from existing brands that have done well in the field of Instacart-like app development. 

And we also know the one name that has already come into most minds. 

What is Instacart built with? How does a grocery delivery app work? And how do I create an app like Instacart? 

Let us look at each of these things by having a closer look at one of the most successful Instacart-like app development systems we know

To begin with, Instacart is a platform headquartered in California and founded in the year 2012 by the two founders namely Apoorva Mehta and Max Mullen. It was only a matter of time before the company received 2,00,000 shoppers, with over 30,000 worldwide stores and more than 500 million products listed. 

In addition to that, its services are available to about 80 percent of households over the world. 

And this is not all. Instacart has over the years, given rise to many budding entrepreneurs in America and other parts of the world that are also coming up with Instacart-like app development to help the world at large. 

How did they do it all?

Well, for starters, this is a company that mainly adopts a technology-driven business model that has gone a long way in satisfying its customers by way of speed as well as performance. 

Now, a lot of tech guys working to develop an app like Instacart would be researching to know what technology this app uses. And I’m guessing that is how you landed on this page, so here I am to answer you. 

Uber-For-X is a model that is becoming a favorite of an increasing number of businesses from taxi services to food and grocery delivery services like Instacart. 

How Do I Start An Instacart Business?

All that said, let us now look at how we can start an Instacart business of our own and how does this app works? This is something we are going to see in the next few lines. 

start an instacart business?

1. Consider the Business Model

One of the first steps to creating an app like Instacart is to choose a business model, be it a single store or an entire grocery chain that you want to include in the plan. 

Some other things you need to think about here is the type of revenue model you want, ways to work on commission charges and finally the service charges of your business. 

2. Consider the Features

Okay,  now once you have decided on the model, the next thing we need to think about is the kind of features to include in your business app. 

Remember that you need to do all you can to make using the app easy and pleasant for your customers. 

Consider the kind of browsing options you want to introduce, the way your cart, shopping list and search box is going to look, and how easily your customers can track and make orders. 

These are little things that go a way in creating a massive impact on the look and feel of your grocery app, drawing customers to or away from it. 

3 Consider the Design

Okay, now that you have taken a look at the features, let’s consider the next most important thing when it comes to starting any app: the design!

This is what is going to decide how unique your app is and what sets it apart from other Insta-Cart like apps out there. 

So, don’t forget to take some time out to decide and build on this.

4. Consider the Software

Finally, you need to think about the programming language you want to use for your new app, and various other features like the GAP navigation and the online payment gateway. 

Remember that building an app can be a lot of work at first, but once you are done, you can begin running your business in a smooth way. 

However, don’t forget that a good app is one that involves timely updates and improvements as you find ways to make the lives of your users easier by the day, and in turn, increase your loyal customers by the day. 

Instacart Clone Vs Custom Instacart Like App Development

It is a fact that grocery delivery app development is here to say, what with the development of smartphones and app services today. So, don’t worry about the cost. As long as you invest wisely and take the right steps, you too are going to make some huge success. 

So, now, one of the first questions popping into your mind would be, “how do I develop an app[ like Instacart, right? 

You are probably thinking about getting started and wondering whether you should build your app on the same

You are probably looking for a ready-made solution with which you build your app and start running your business. 

In such a case, the Instacart Clone is here for you. An app solution for budding entrepreneurs, it helps you with all the right features and technology needed to quickly build your app nad start delivering your grocery to nearby customers. 

This method is cost-effective and helps you save time as you develop your app, too.

Other Factors that Impact the Cost of App Development

When you want to develop a grocery delivery app like InstaCart, some other factors will greatly contribute to the cost. You must understand these to have a better idea while planning and budgeting your project.

1. App Design

A good design user interface and user experience highly impact the user’s interest and keep him or her around. Hiring proper design teams is expensive but will probably generate a superior-looking and user-friendly app.

2. Platform Choice

The decision of whether to develop the app for iOS, Android or both will also play a role in the cost factor. Developing both systems simultaneously may incur additional costs during development but will offer a much wider audience.

3. Features & Functionalities

Functionality and the countless numbers you would want to be integrated into the utility directly establish the app’s cost. Having some of the more complex functionality, such as real-time tracking, payment integrations, and personalized recommendations, will require extensive development time and resources.

4. Technology Stack

The technology stack can have a large bearing on the initial development and ongoing maintenance costs: programming language, framework and tools. It may be initially expensive to use some modern technologies that are also scalable, but they will save costs in the long run.

5. Development Team

The hiring cost of developers varies according to the nationality, experience, and types of team chosen (freelancers, in-house, development agencies). Experienced developers may charge higher fees but may be more dependable regarding reliable and effective product delivery.

6. Third-Party Integrations

Integrating third-party services such as payment gateways, SMS services, and mapping APIs will increase your app’s cost. Licensing fees and extra development will generally be required with each integration.

7. Server costs

Setting up and maintaining servers for user data, orders, and other applications can be an important recurring expense. Cloud services like AWS, Google Cloud, and Azure have great benefits as scalable solutions but are hit hard in price. 

8. Security 

Implementing high-end security measures for user data and transactions would include encryption, secure APIs, and compliance with different regulations like GDPR or CCPA, to name a few. Ensuring security would often augment the time required and, hence, the costs incurred in development.

9. Testing & QA

It is essential for the success of an app that comprehensive testing and quality assurance processes be attempted to yield a working and faultless piece of software. The more effort put into these processes and into the earlier identification of defects in the application, the greater the costs at that point.

10. Maintenance and Support

Along with post-launch maintenance and support, there is still ongoing cost, which should be included in the budget. It includes updates, bug fixes, performance improvements, and customer support.

11. Marketing and Promotion. 

By promoting the app, users are attracted to the application. Marketing for the app could be so expensive that even cost-inducing social media campaigns, influencer partnerships, and paid advertising may be utilized.

12. Legal and Compliance Fees 

You will need to pay for it to have legal representation in preparing all the official documents required for your app’s compliance with domestic and foreign law. That includes privacy policies, terms of service, and everything else that can keep piling up the charges.

FAQs

Okay, we have looked at quite a lot till now, but before we end, let us consider a few of the common questions people have with regard to starting a grocery delivery app. 

Are there any other successful grocery delivery apps apart from Instacart? 

Yes, while Instakart is one of the first names that comes to mind when you say grocery delivery app, there are also a couple of other Instakart-like apps that are doing well today like Peapod, Fresh Direct and Whole Foods to name a few. 

How do I generate revenue from my grocery delivery app?……

Let’s see how Instakart does it. For one, customers are made to pay a delivery fee. And then, they also receive a commission from sellers that they partner with. And then, there are also markup prices, all of which come together to provide revenue to a grocery delivery app like Instacart. 

Can a grocery delivery app make money in this pandemic?

Well, to be honest, grocery delivery apps can make a lot of money in the pandemic with a lot of people choosing not to go out and make a visit to stores and supermarkets. Of course, there are precautions to take here, like masks for delivery partners and all others in the business and the use of sanitizers, but apart from this, the pandemic is in no way an obstacle to the grocery delivery business. 

How can I expand my grocery delivery app business?

One of the first steps is to study the market conditions at all times. Keep an eye out on the changing conditions and learn as you go. You may not be successful at first. There will be lessons you are going to learn along the way which are the steps you will climb till you will one day find yourself running a successful grocery delivery business. 

looking for grocery app development?

grocery operators should comprehend the industry’s increasing diversity beyond aggregators with a significant public presence before expressing their views about mobile ordering applications. As restaurants are less content with their reliance on third parties to be sold online, they would profit from looking for alternative ordering and delivery options that control them. If you are also looking for your on-demand grocery delivery app development, contact our business and sales team at +91 93090 90932 or [email protected].

Create An App Like Instacart Today

So, if you are looking at Instacart and wondering how they did it all, don’t worry. Believe in yourself and learn all that you can. Start today and take a step forward as you make an effort each day, growing from one day to the next. And before you know it, budding companies that were once learning from Instacart will soon start to observe and learn from you too.

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About Author

Ashish Sudra

Ashish Sudra is the Founder and Chief Executive Officer (CEO) at iCoderz Solutions. He has over 15 years of experience in the information technology and services industry. He is skilled in Digital Marketing, ASO, User Experience and SaaS Product Consulting. He is an expert Business Consultant helping startups and SMEs with Food and Restaurant Delivery Solutions.

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