Nectarbits
Cost On Building On-Demand Grocery App

How Much Do You Need To Cost On Building On-Demand Grocery App Development?

With a heightened sense of instant gratification, patience has become an afterthought. Continuous technological advancements have made immediate gratification need even more intense. Thankfully, the Uberization of the economy has fulfilled this need and made daily chores a bit easy. The on-demand grocery delivery app solution is such a blessing for the people up to the neck.

It’s not just a stereotype of Millennials, the people from all walks of life are readily embracing the grocery delivery apps to not want to pick-up trolleys, select and collect the items, and then stand in long queues for checkout. In addition to convenience in the accessibility and buying, the recent pandemic- Covid19 has increased the grocery apps usage and sales by multi-folds.

For instance, the Instacart app has experienced a 218% increase in the app installation and the sales are improved by ten-folds in the first week of March. Walmart grocery app has also registered a 160% increase in app downloads.

Not just due to the Corona virus’s measurable impact, but the researches had already proven that grocery delivery apps are picking an up-trend in the market.

Catching up with the latest trends

  • The online grocery market is projected to grow to become $117 billion by 2023.
  • The mobile grocery sell is certain to take off with increasing mobile penetration.
  • Gen X is showing positive behavior toward mobile grocery shopping.

After checking the pulse of the grocery industry- it’s a sign- on-demand grocery app is the fastest-growing segment in the on-demand economy because the huge shift came in people’s preferences, tastes, and buying habits. The budding entrepreneurs wanted to enjoy a good share of huge sales and ROI.

When the rookie players connect with on-demand app development companies, they come up with a series of questions- how much does it cost to make a grocery app? On what factors does the price depend on? Does the investment worth the revenue it brings in the future?

Most often, the tricky response- ‘It depends’ in place of answering the question precisely, confuses them. Also, providing a rough picture of the price range from $20,000 to $50,000 doesn’t paint the real picture and the significant gap leaves the entrepreneurs clueless.

Read more : Cost to Pay for Mobile App Development in 2020 ?

To help you serve the people with busy schedules and busy lifestyles with grocery app development hassle-free, we have enlisted how much you need to invest for grocery app development, the business models to make money and the competition that you are certain to face.

Business model

  • Commission model

Under the model, the different commission rates are set against different types of products like- the products in high demand, up-trend, and others.

  • Subscription model

The customers buy one of the subscription plans to get some items regularly in exchange. The cost of subscription service will become a mainstream of revenue for business owners.  

  • Service charges

The sellers earn by applying a service charge on the delivery types such as delivery within few hours or same-day delivery on the products to sell.

The positive growth in terms of the user base, sales, and revenue is gearing up the new players to make the most out of the lucrative opportunity, but the competition is fierce enough from getting funds to seizing an edge in the market.

mobile app solution New York

Sizing up the top honcho performance can’t be overlooked

You might be puzzling what the competition has to do with grocery app cost estimation, but it plays a vital role. When you enter the grocery delivery market, you cannot grab the market share unless you offer everything that the leading apps are offering, in addition to the USP of your app.

Instacart, Shipt, Fresh Direct, and Farmigo are some of the apps that are ruling the grocery delivery space with measurable ROI. Conduct research in-depth to know everything from in-and-out and stand out the crowd.

How much you need to pay for grocery app development?

Finally, we have landed on the section about which we were discussing so far. Depending on the feature set and tech stack, the app development cost ranges $20k- $50k, but the exact figure can be defined after the detailed analysis of a couple of elements. The cost of on-demand grocery app development relies on several factors:

  • The number of platforms on which you want to build the app
  • App’s complexity
  • Team size
  • App development company location
  • Third-party integrations

Further cost breakdown

Building an app on both platforms natively double up the app development cost, but when the cross-platform development approach is undertaken, the app for two platforms- iOS and Android can be built at the price of nearly one app development.

For instance, iOS app development encompasses the customer-facing app features development and delivery person app features development that requires 1200 working hours.

The UI/UX designing of both interfaces incurs around 800 working hours, and QA & testing goes around 500 hours.

The project management eats up 200 man-hours. In this way, on an average 2700 working hours are consumed for iOS app development. Android app development requires 3,000 man-hours due to device fragmentation issues.

Depending on the development team’s location, the rate per hour will be multiplied by the total working hours and you will get the actual cost of iOS and Android mobile app development.

Read more – cost to develop a food delivery application ?

Hold on! Still, a couple of things are left. The back-end web services development, app deployment, third-party service integrations, and the selection of technology stack will have a great impact on the final cost. For example, web panel building requires 200 working hours, app deployment demands 50 hours, and third-party integration would go around 70 hours. In total, 320 working hours needed for this.

Here, you have the broad picture of how many working hours will be consumed in the development, designing, testing, and management of the grocery app development, and based on the development partner’s hourly rate, you will get to know the exact price for the same.  

Pros and cons of the readymade solution and custom development

Well, what we have discussed so far is in the favor of custom development. In the event, you can’t spend bundles and want to launch the app in a matter of days, then custom development is not of a cup of your tea. You have to go white-label shopping app development way. The pocket-friendly development lets you take the offerings to market quickly and market them at speed, but scalability remains an issue with this. However, if you are testing the app idea, it’s a faster and easier way to get to the market.

The decision is yours. What’s on the top of your priority list? Move ahead accordingly. All the best!

uber-for-grocery-delivery-business-cta-blog-banner

Himanshu Patel

Himanshu Patel is the founder & CEO of NectarBits, a fast-growing Taxi app development & OnDemand mobile app development company. The current innovation and updates of the field lure him to express his views and thoughts on certain topics.