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Numerous food stores now operate online. The top grocery delivery apps are listed along with their business models and key factors contributing to their success.
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Introduction Grocery forms a part of basic day-to-day needs for humans, hence people tend to spend hours on their grocery shopping runs. Weekly grocery shopping has been a common practice for decades. People generally spend hours going to a grocery shop, picking the best grocery from the options available, and contemplating their choices. Although this seemed like a crucial thing to be done, the arrival of on-demand apps has shown people that it is not always necessary to waste hours on grocery shopping. These apps provide various benefits for all parties involved; they allow customers the convenience to shop from home, sellers the option to sell their groceries before they go bad, and give part-time employees an added source of income.
List of the 21 Best On-Demand Grocery Delivery Apps Many grocery businesses have become on-demand while many other aggregators have also come up to give a platform to the ones that don’t have the necessary resources to go online. As a result, there are many on-demand grocery apps that are flourishing in the market. Some of these players are discussed below. 1 to 6 are some of my favorite picks. Instacart Instacart is one of the leaders in the online grocery market when it comes to North America. It covers almost 85% of the US and almost 65% of Canada. Instacart has tie-ups with grocery giants like WholeFoods, Costco, Safeway, etc. and via them delivers more than 300,000 items. Instacart has partnered with more than 25,000 stores and raised 6 rounds of funding. The company was valued at $8 billion by the end of 2019.
2. Postmates Postmates is an on-demand app that took its inception in May 2011. The app is kind of a tech-driven courier service but for your daily needs. The app makes use of mobile devices and GPS to match your requirements with nearby products and deliver them to you. The company has partnered with McDonald’s, Walgreens, Starbucks, Chipotle, etc. and can process more than 8 million monthly orders. The company has around 250,000 merchants that serve 3500+ cities. The company is valued at US$1.85 billion. 3. Shipt This is another grocery-delivery business that operates throughout the US. It has more than 50,000 shoppers and an estimated annual revenue of $120 million. The company has partnered with retailers like Target, Whole Foods, Publix, Costco, etc. It has an employee base of 604+ people who work hard to deliver all grocery related needs of their customers.
4. Big Basket Big Basket is one of the leading grocery service providers in India. They work better than their rivals Grofers, Nature’s Basket, Reliance Fresh, etc. because of their popularity. They sell more than 18,000 products and have 1000 plus brands selling fruits, vegetables, rice, pulses, beverages, spices, meats, personal care products and multiple other items. They have excellent customer service which makes them popular throughout the country. 5. Farmigo This on-demand app is a great online farmers app that allows its customers to order dairy products, snacks, meats, etc. The main aim of this app is to provide its customers with fresh produce and get items directly from farmers at a rate and quality better than the supermarket. The company receives revenue of almost US$ 3.5 million every year.
6. Peapod Peapod is a Chicago based grocery delivery business. It offers groceries in more than 24 US markets including Washington, Boston, New York, Virginia, Indiana, Illinois and Chicago. The app allows its customers to make grocery lists 7. FreshDirect As the name suggests, FreshDirect focuses on providing the freshest products to its customers. The main target audience for FreshDirect are the people who are concerned about what they consume, want to know where it comes from and are willing to pay extra for freshness. The company was founded by David McInerney in the year 1999 and since then it has provided daily grocery to multiple cities in the North-east US including New Jersey, New York, Pennsylvania, Washington, Delaware, Connecticut, etc.
8. Instashop Unlike most grocery delivery businesses, Instashop started as a company that focuses on a particular niche and tries to fulfill all their needs. They focus on young professionals for their business. The company is based in Dubai and was founded in the year 2015. The company that started as just an on-demand grocery delivery business has now expanded and also consists of products related to pharmacy, butcher, pet shop and maids services. It currently has more than 50 supermarket partners, 150 employees and more than 350,000+ active consumer base. 9. Safeway Safeway is a known name in the US, it has been a leading grocery chain in North America for many years now. Like most grocery chains, Safeway also started its own grocery delivery app in order to expand its business to new customers. The company has a broad product portfolio which is one of the things that makes this chain so popular. Safeway has an extensive network of manufacturers, distributors and facilities. It has more than 1678 stores in the US and Canada.
10. Walmart Grocery Delivery Walmart grocery delivery app is an extension of the Walmart store. Walmart has been a common name in the US for a long time so people were extremely surprised when they launched their own delivery service. Under this, people can find most of the products they get in the store. This is a great way to get groceries delivered to your doorstep directly from your favourite store. With Walmart delivery, you can easily select the time slot for the delivery. You get the products with an additional fee that ranges between $8-10. You can also take a subscription that costs $13 for a month or $100 per year and get deliveries for free. 11. Google Express Google express is like a virtual mall offering products from multiple online as well as offline stores. This service is focused on delivering dry grocery items like canned food, cereal, coffee etc. The delivery system is working in most of the cities in the U.S. including Walmart, Target, Best Buy, Costco, Kohl’s, Walgreens etc.
12. AmazonFresh AmazonFresh is a new service by Amazon. This delivery service is offered as an extension to the Amazon Prime membership. If you are already a Prime member, you can easily get products from AmazonFresh. Currently, AmazonFresh is only offering grocery deliveries to its old and new prime members. Although it is known for its grocery delivery, AmazonFresh more than that, you can get products like fruits, vegetables, canned goods, packaged snacks, raw meat but you can also get household supplies like batteries, paper, cleaning products, grooming products etc. 13. Reliance Fresh Reliance Fresh is another Indian grocery-delivery business. It has its own physical stores and also offers online deliveries in some parts of the country. The company was founded in the year 2006 by Mukesh Ambani and V. Subramaniam. You can find grocery, fruits, vegetables and get most of your basic needs fulfilled from just one store.
14. Grofers Grofers is an Indian online grocery delivery business that was founded in the year 2013 by Saurabh Kumar and Albinder Dhindsa. It is currently operational in more than 17 Indian cities including Bangalore, Mumbai, Delhi, Pune, Surat, Ahmedabad, Chennai, Hyderabad, Indore, Jaipur, Kolkata etc. The app connects customers to local merchants and offers groceries, vegetables, fruits and essential goods. With Grofers, you can either pay in cash or via any other online options. Many discount features are not available if a consumer orders products in cash. 15. Kroger Kroger is one of the largest supermarket groups in the US. When they saw how big the delivery business had become, they decided to partake in it themselves, that is how Kroger delivery was born. The company operates in 35 states with more than 2800 stores and 24 regional chains.
16. HelloFresh With headquarters in Berlin, HelloFresh is an online retailer that delivers products you would need for various recipes. Unlike other grocery delivery apps where you buy fruits and vegetables aimlessly, HelloFresh allows you to buy only the grocery items you need. HelloFresh works on a subscription model where you can pay $50-100 per week for receiving all three meals for the day. They also have separate family plans and veggie plans. Their business model is to simply provide the ingredients necessary for preparing a meal. They provide the products only as per the amount required which makes sure you are not wasting any groceries.
Conclusion When it comes to an on-demand app, you don’t hold any real products or have many full-time employees. The only thing you have is your app and its functionality, that is the only tangible thing for your business. Everything else can be controlled and managed, but if you have an app that doesn’t satisfy the needs correctly your company is bound to fail. It is necessary to understand the grocery market, realize what your customer needs, understand the current scenario, and then develop an app that fits perfectly in this ecosystem.
