Last year in March, we saw a huge upsurge in grocery delivery app due to the pandemic as people were afraid to get out of their houses to buy groceries. Groceries are a basic necessity; that’s where on-demand grocery delivery app helped people and grocery businesses.
If we keep the pandemic aside, grocery shopping apps are still essential for all. It is convenient to order groceries with just a few clicks from the comfort of our homes. In today’s busy life, people don’t have time to go and buy groceries, and that’s where on-demand grocery delivery comes in handy.
Grofers and BigBasket are key players in delivering groceries. Following their success stories, many brick and motor stores are trying to make their presence felt in this space.
There is a huge demand for grocery delivery app, which is great news for budding entrepreneurs. Grocery delivery apps are one-stop virtual solutions for food items, kitchen stuff, cleaning supplies, toiletries, etc.
Now, you must be thinking about how On-Demand Delivery apps make money? Read on to know more…
Revenue is important for any business. Continuous revenue helps businesses thrive in the competitive market.
Let’s see how on-demand delivery apps make money.
Delivery Fee
On-demand delivery apps charge delivery fees. This amount is modest and is not too difficult for the consumer to bear. Another benefit is that the items are of good quality, and they are the same as in stores. The amount is same what consumers pay in shops and for online shopping. The delivery fee also depends upon the location of the delivery and the size of the order.
Commission
Many on-demand delivery apps list all the grocery stores in a particular area and charge them a commission for every order completed. They also charge stores a monthly membership fee.
Subscription Fee
A subscription fee is charged to customers who want to receive daily, weekly, or monthly staples without placing an order. The best grocery delivery app offers customers to opt for premium services, where they don’t need to order staples every month; they just have to choose their staples and choose daily, weekly, or monthly delivery options and groceries will reach them on time. Consumers get the benefit of getting items at slashed prices when they subscribe.
Essential Features of an On-Demand Delivery App
If you are thinking of building an Online Ordering App, you have to provide your customers with exceptional features that makes it easy for them and order without any hassles.
Below we are listing some of the must-have features of the on-demand delivery app:
- Out-standing UI/UX
- Top of the line navigation from page to page
- Assistance Bot
- Easy Login and Signup options
- Profile setup for the stakeholders
- Maps and locations
- Advanced search filters
- Connectivity with all the payment gateways
- GPS Tracking
Customer App
- Sign Up
- Shop by category
- Filter the items
- Browse by best sellers and/or brands
- Add and remove items from the cart
- Wishlist
- Checkout
- Online payment
- Apply coupons
- Track orders
- Previous orders
Delivery Personnel App
- Signup or Login
- Orders list
- Order details
- Update order status
- Profile
- Notification
- Wallet History
A Glance at the Business Model of Grofers and Big Basket
Grofers is one of the most preferred on-demand delivery service providers. Over the years, the company has transformed its business model, but the key components are more or less the same. Grofers came into existence in 2016, and it has remained a hyperlocal delivery startup. Grofers made ties with local stores and pharmacies for deliveries. These shops don’t have marketing strategies and delivery support in place, and Grofers help them to reach customers.
Grofers targets users who usually don’t have time and energy to go to local shops and buy stuff; instead, they want swift deliveries at their doorsteps. Grofers doesn’t ask shops to arrange delivery staff; instead, it takes care of deliveries itself.
Now, let’s have a look at the business model of Big Basket. It directly ties up with suppliers for perishable goods and also maintains its own inventory. The inventory-led model of Big Basket of the company (launched in 2011) helps it to buy in bulk at slashed prices. It gets higher discounts as it directly buys from manufacturers in large quantities. Also, Big Basket generates revenue from its private labels. It buys unbranded products and adds its own labels to sell on the platform. The company maintains ten days’ worth of inventory so that it doesn’t lose money on perishable items. It only wastes 5% of perishables, which is a big feat of the company.
Final Words
In the changing times, customers are looking for convenience. They are ready to spend on products and apps that make their life easier. The on-demand grocery delivery market is expanding, and in the future, we will see customers relying more on apps for their daily needs. If you want to build the best online delivery app, now is the right time to do so. You should get in touch with a reputable app development company that has vast experience in the field. Ask about their portfolio, and if they have built an app like Grofers or Big Basket, you can go ahead and trust them. Don’t forget to check online reviews and ratings of the company before hiring them. Many companies offer a free demo that will help you to make a final decision.
So, don’t waste time and get your business started, now!
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