Guide on Developing an Application Akin to InstaShop
Groceries, baby! The surge in mobile adoption means the world of apps is booming, and food delivery platforms are leading the charge. A report by eMarketer nailes it down, revealing grocery and food delivery apps turned out to be the fastest-growing app categories in 2020.
Stats from Statista shed some light on this mammoth growth. In 2019, online grocery deliveries and pickups in the U.S totaled $1.2 billion. Fast-forward to October 2021, and that number ballooned to a whopping $6.4 billion. Yep, you read that right – a five-fold increase in less than two years, thanks to COVID-19 acting like the golden ticket for this industry.
Both "click-and-get" and "click-and-collect" models are now hotter than ever, with more and more consumers showing interest. The former gives folks stuck at home a convenient doorstep option, while the latter allows users to inspect items before buying at their convenience. With the virus looking like it's here to stay for a while, online grocery delivery apps can expect a significant increase in demand in the future.
This good news for enterprising souls! Investing in an online grocery delivery app, like the badass InstaShop, could mean disrupting the market and raking in some serious dough.
So, let's dive into the numbers to better understand this promising landscape. USA Today predicts online grocery sales could touch $187.7 billion by 2024. eMarketer, meanwhile, expects the number of adult grocery app users in the U.S to hit a whopping 30.4 million by 2022, up from just 12 million in 2017.
InstaShop, a leading on-demand online grocery delivery app, has clocked in over 500,000 active users across five countries. With a cool promise to deliver within an hour and more than 20 categories of grocery items, it's no surprise this app has become consumers' favorite go-to for all things groceries.
Whether you want to break into the market and build a similar app or simply want to know more about InstaShop, read on to learn everything you need to know. Here's what we'll cover:
- InstaShop Stats and Facts you shouldn't miss
- The lowdown on InstaShop - how it works and its key offerings
- Choosing the right business model for your app like InstaShop
- The revenue model for grocery apps like InstaShop
- The must-have features for apps like InstaShop
Online Grocery App Market: Stats and Facts you Must Know
- The online grocery shopping sales in the United States is projected to smash the $187.7 billion mark by 2024, compared to $95.8 billion in 2020.
- Young, affluent, and urban households are the most likely to shop for groceries online.
- The number of adult grocery app users in the United States is expected to hit 30.4 million by 2022, up from the measly 12 million in 2017.
Getting into the online grocery delivery app game before COVID-19 became a business standard was already a good idea. With the pandemic, it's quickly becoming a no-brainer for entrepreneurs planning to launch a similar app. So, let's find out more about InstaShop, how it works, and the steps to create an app like InstaShop.
What is InstaShop?
InstaShop is a badass online grocery delivery app founded in 2015. Its mission is simple – offer a seamless, hassle-free grocery experience by letting homebodies order groceries online and have them delivered to their doorstep within 30-60 minutes.
In addition to groceries, InstaShop offers a variety of essential on-demand delivery services like home cleaning professionals, pharmacy supplies, and pet supplies, making it a one-stop-shop marketplace.
Currently, InstaShop serves over 500,000 active users across five countries, including the UAE, Bahrain, Egypt, Lebanon, and Greece.
InstaShop: Key Highlights, Features, and Offerings
InstaShop's popularity among consumers is easy to understand when you see the app's features:
- A commitment to delivering items at the customer's doorstep within an hour
- Over 20 categories of grocery items, covering a wide range of essentials
- Additional on-demand delivery services like medicines, home living supplies, and more
- Multiple secure payment options, including credit cards, online wallets, and cash on delivery
- An option to replace or request a refund if an item is damaged
- 24/7 product delivery
- Available for both Android and iOS users
Choose the Right Business Model for Your Grocery App like InstaShop
Before getting started, you need to decide on the type of business model you want to focus on. Here are four popular options:
- Inventory-based Business Model: In this model, the eCommerce grocery platform owner buys and stores the inventory. They buy items from different suppliers and manage a warehouse for storage and delivery. Examples: Grofers & BigBasket.
- Multi-vendor Marketplace Business Model: This model brings multiple buyers and sellers together for commerce. It's a "Zero Inventory Business Model," meaning the platform owner does not manage inventory. In this model, either the seller takes care of packaging and dispatching or the platform owner does it. Examples: Peapod, InstaShop.
- Hyperlocal Grocery Business Model: This model focuses on meeting the needs of customers within a particular geographical area. The platform's USP is delivering items at lightning-fast speed to customers' doorsteps. The order pick-up location and the customer's location should be within the same zip code. An example: InstaShop.
- Click-and-Collect Business Model: Also known as BOPIC (Buy Online, Pick-Up In-Store), this model offers both offline and online shopping experiences. It enables users to place an order online and then pick it up from the physical store. Example: Kroger.
Now that you know the different business models, it's time to evaluate the revenue generation models. Here's how you can earn money from your grocery app like InstaShop:
- Commission from the store owners: By charging a small commission from store owners to get listed on your app.
- Advertisements: By allowing other stores and brands to display their ads on your grocery app and earning money from it.
- Delivery charges: By setting delivery fees according to location. You could offer free delivery for items delivered nearby.
- Subscription fees: By offering packages with premium services, like no delivery charges, to users for a subscription fee.
Must-Have Features for Apps like InstaShop
Whether you're building a grocery buyer app, a grocery delivery app for riders, or an admin app, these features are essential:
1. Buyer App
- Easy registration
- Basic product search
- Wishlist
- Payment options
- Product recommendations
- Delivery options
- Order history
- Real-time tracking
- Voice search
- User-friendly checkout process
- Ratings and reviews
- Coupon codes and rewards
- Push notifications
- Repeat orders
2. Rider App
- Easy registration
- Profile management
- Wallet management
- Order management
- Geolocation (location of the customer via GPS)
- In-app chat
- Delivery history
- Earning dashboard
3. Admin App
- Order management (assigning orders)
- Rider management
- Customer management
- Category management
- Analytics and reports
So, that's all. You now have a clear understanding of what InstaShop is, its key features, and the steps to create an app like InstaShop. Ready to jump into the game?
- The impressive growth in online grocery delivery and pickup services, such as InstaShop, reflects a bustling market, with sales projected to amount to $187.7 billion by 2024 in the United States alone.
- Investing in an innovative online grocery delivery app like InstaShop could potentially disrupt the market and yield significant returns, considering the high demand for such services, particularly among young, affluent, and urban households.
- To build a similar app, entrepreneurs should choose an appropriate business model, such as the inventory-based, multi-vendor marketplace, hyperlocal grocery, or click-and-collect model, based on their capabilities and market dynamics.
- A well-designed grocery delivery app like InstaShop should prioritize features like quick delivery, a wide range of grocery items, various payment options, and robust user experience on Android and iOS platforms, to appeal to a broader audience and stand out in the competitive landscape.