Build An App Like Shipt: Grocery Delivery App Development Process, Features, & More

On-demand grocery delivery apps like Shipt and Instacart are changing how buy groceries.

Following the pandemic, more and more people are buying groceries online.

Online grocery shopping has almost become a trend. And companies are making millions ( & billions in revenue)

Consequently, online grocery sales in US will reach $36.3 billion by end of 2023.

And average annual spending on online grocery ordering shall grow to $1,524.84 per customer.

There are many more stats showing how big and rich the market has grown.

This has attracted a lot of businesses throughout US market to build grocery delivery app. And if you are one of these, this blog is for you.

Here, we shall be discussing all you need to know about building a grocery delivery app like shipt.

This include:

Brief of Shipt

Working

Who is it for

Why invest in it

Other on-demand grocery delivery apps

Things to do before development

How to build an app like Shipt – InstaCart

And grocery delivery app development cost & time.

By the end of the blog, you will have everything you need to know about creating your own local grocery delivery app.

Let’s get started.

Shipt App: Same-Day Delivery Grocery App

Shipt App.

This is the mobile app that allows users to order groceries and much from their local stores and have it delivered to them, on the same day.

While not the largest, it is one of the most popular on-demand grocery delivery platforms in USA.

It’s available on iOS and Android.

And has millions of downloads.

Founded back in the year 2014, and led by Bill Smith, this platform is an example of top-class grocery delivery app development.

Almost a decade later, the platform provides grocery delivery services across 5,000 cities from over 130 retailers.

Known as the “same-day grocery delivery app”, Shipt is very popular.

Another reason why people love ordering from this platform is their wide offering.

They cover over 20+ categories.

As such, these can mainly be divided into two categories.

The fresh

And The “From The Home”

So, you have everything from Milk and Alcohol Delivery To beauty, and many more.

Shit is a big platform, to say the least.

And if you want to develop a grocery delivery app, it’s a good idea to know the success story of this platform.

Shipt’s Success Story – On-Demand Grocery Delivery App

Bill Smith founded Shipt in 2014.

Here’s how he did it.

Bill was a high-school dropout living in Birmingham.

And he absolutely hated going out for delivery day and day again. ( A lot of us can relate to it.)

That’s when he got the idea to start a grocery delivery business, that offers same-day delivery.

So, he started his own company in 2014 as an on-demand delivery platform.

Over the years, the company attracted a lot of users, and it’s 3 rounds of funding, the on-demand delivery company raised $65.2 million.

Fast forward to 2017, just three years after starting,

The platform was acquired by Target for $550 million.

A year later in 2018, the company with its impressive growth hit a valuation of 1 billion.

In recent years, the company expand even more and added 1,000 new store locations, reaching another 2 million households.

Moreover, it showed a 252% growth in 2021, from 2019.

This is the success story of shipt – an on-demand delivery grocery app. Now, let’s look at the business models.

Shipt – Local Grocery Delivery App Business Model

How does Shipt grocery delivery platform make millions?

Well, let’s look at the business model and revenue streams.

• Membership Fees

Well, users have to subscribe to the platform as a member.

And this is one of the largest revenue sources for apps like Shipt.

There are two types of membership.

These are:

• Annual – $99
• Monthly – $10.99

Plus, there is free delivery with VISA cards.

• Delivery & Service Fees

Being an instant grocery delivery app, Shipt provides delivery partners known as the “shoppers”’ who get stuff from the store to the user.

The shipt shopper app makes this bridge.

In any case, the user has to pay a fee for this service.

And this becomes one of the largest revenue streams for the platform.

• Commission On Sales

Well, there are various grocery stores that partner with the shipt platform.

This includes

Walgreens

7-Eleven

Dagostino

Dans Fresh Market

Dicks Market

Dierbergs

Weis Markets

Western Market

And so on.

As an aggregator, there is a revenue-sharing agreement between them.

This creates revenue for them.

• Price Markup

Price markup.

Well, this is a common tactic and revenue generation method for grocery delivery businesses.

The cost of items on the platform is around 10% to 20% higher than what you would find at the store.

All of the revenue from the marked-up price goes to the platform.

This is the business model of the shipt app for grocery delivery.

Moving on, let’s look at the grocery delivery app’s working.

How Does On Demand Grocery Delivery App Work?

On-demand mobile apps are very easy to use.

That’s one of the reasons why people love them.

And so is the case with the shipt app.

Let’s see how it works.

1. Download The App: as a hybrid mobile application, it is available on both iOS and Android platforms.
2. Register: it’s time to create a profile. You can do it with email, phone number, Google ID, or even Apple ID.
3. Membership: to use grocery delivery apps like shipt and instacart, users need to buy a membership. There are two options monthly or annual. Apart from this, they can also choose one-time delivery.
4. Choose Category: there are more than 20 categories. Users can choose one or multiple to explore items.
5. Explore Offering: there is a range of offering on the platform. However, if you can’t find what you need, there is also a Special option for that.
6. Choose Delivery Option: there are various delivery options like 1-hour delivery, same-day delivery, and so on.
7. Provide Location: add the address to which the user wants stuff to be delivered.
8. Pay: pay for the service with in-app eWallet integration.
9. Have Groceries Delivered: the grocery is delivered to the user’s doorstep.

This is the working process of the local grocery delivery app – shipt.

Well, now that you know everything about the shipt app. It’s time to look at the popular InstaCart vs Shipt Debate.

InstaCart vs Shipt: The Best Grocery Delivery App in USA

InstaCart is most downloaded grocery delivery mobile app with over eight million downloads.

And more often than not, people compare shipt vs instacart.

So, is Shipt Better Than InstaCart or is it the other way around?

Well, let’s compare than head to head and find out which one of them is better.

And what are the major differences.

Well, in most of the ways, shipt and InstaCart are exactly the same.

Both of them have

• Delivery From Local Stores
• Multiple Delivery Address
• 1-Hour Instant Delivery
• And 99$ Annual Membership Fees

But that’s where similarities between shipt vs instacart ends.

Let’s look at the major differences in working for shipt vs instacart.

Which Is Better Shipt Or Instacart?

While both of them are leading grocery delivery apps, there are different areas both of them excel.

For instance, when it comes to user-friendly-ness and affordability, Shipt is much better.

On the other hand, InstaCart is more popular and have higher range.

In any case, apart from apps like Shipt and InstaCart, there are other amazing platforms to take inspiration from.

Let’s look at them.

Other Popular Apps Like Shipt

There are a lot of on demand app development services who can convert your idea to reality.

But, it’s always better to take inspiration from on demand grocery delivery app that has already made it big.

So, let’s look at the best and most popular apps like Shipt.

These are, as mentioned below:

These are some of the top shipt like apps.

Now, let’s move to the next section where we shall be discussing reasons to invest in grocery delivery apps.

Why Invest In Grocery Delivery Apps Like Shipt and InstaCart?

The first question a client ask is,

“Why should I invest in Grocery Delivery App Development?”

But rest assured, there are plenty reasons.

So, let’s look at the top reasons to build an app like Shipt:

• It’s A Trend ( With Skyrocketing Demand)

People don’t say

“I’m going to get groceries”

Anymore.

Rather, they look for “grocery delivery app near me”

This is one of the big reasons behind popularity of grocery delivery apps.

And not to mention the skyrocketing public demand.

Especially after the pandemic, the demand for grocery delivery apps has only increased.

26% of shoppers surveyed, or 6% of all consumers, say they have been placing online grocery orders more than once a month

This is one of the reason to build your own app like shipt.

• Off-The-Charts Revenue

Who wants to make millions?

“We do” said Every business ever!

So, here’s how you do it.

Grocery delivery industry generate billions in sales revenue.

And this is driven by mobile applications, or on-demand grocery delivery apps to be specific.

It’s more convenient for the customer and much more profitable for businesses.

• Business Growth For Local-Small Businesses

Business growth!

That’s the buzzword these days.

Well, mobile apps are one of the pillars of business success these days.

And one of the most popular small business app development idea is, grocery delivery app.

How?

Because people love ordering from grocery delivery stores.

Why?

Because it’s more convienet.

That’s why it’s right time to create shipt app.

Well, you must wondering who is the app for exactly? And we shall answer this question in detail in the section below:

Who Should Build Grocery Delivery App?

Not everything is for everyone, right?

So, who is does this on demand app development model fit the best?

Let’s see, who should invest in grocery delivery apps like Shipt.

Grocery Store Owners

If you have a small grocery delivery business, build a grocery delivery app.

Here’s why:

People trust their local businesses much more than large corporates.

Moreover, with a delivery app, you can expand your reach much further than 2 or 3 blocks around your shop.

After all, it’s just a small investment with big return.

Grocery Chain Owners

Well, well, if you don’t own a single store but an entire change, than app like Instacart and Shipt is a must for you.

Instacart-like app development solutions can leverage your business.

This helps increase revenue and customer base.

Also, it’s extremely simple to build.

And Businesses ( even if you don’t own a grocery store)

Even if you don’t have a grocery store, you can build a grocery delivery app.

Let’s see how and why.

On-demand delivery companies like Uber, FoodPanda, and InstaCart, don’t own any taxis, restaurants, or grocery stores.

However, what they do own is an online marketplace.

You can build an online marketplace for grocery delivery.

And this opens doors of opportunities to make millions and even more.

As an aggregator, you can earn from both businesses and users just like Shipt.

With this out of the way, let’s look at the shipt app development process in the section below:

Things To Do Before You Make an App Like Shipt

How do you make a grocery delivery app like Shipt?

Let us show you how:

Developing a mobile app isn’t rocket science.

But if you want to make a successful on-demand app, you need to do it right.

Therefore, before we get into the development process, there are some things that you need to take care of.

These are, as mentioned below:

1) Create A Concept

The idea is the base of any mobile app.

Therefore, the first thing you need to do is, find an idea.

It’s highly recommended that you work with more than one variation of an idea to have a backup plan.

In case the initial idea doesn’t work out, you can always have a back-up plan.

2) Market Research

Market research is an essential step.

Information collected during this process fuels the entire development.

That’s why you must look into

Competitors

Their strategies

Audience base

Market behavior

And so on.

All of this will help you gain insight into the grocery delivery market and lunch a successful mobile app.

3) Choose A Business Model

It’s time to choose a business model.

Some of the top businesses models you can go with are:

• The Inventory Model
• The Multi-Vendor Marketplace Model
• The Shopping Model
• The Hyper-Local Model
• The Online-Selling  Model

Once you have finalized a model, it’s time to deal with….

4) Paper Work, Legal Compliances, & Licenses

Consider the fact that you are starting a business in the USA,

There are a number of things that you need to deal with.

This includes

Business registration

Compliances

Acquiring licenses

And so on.

Depending on your location in the USA or the world, there might be some other things that you may need to deal with.

Once all of this is done, it’s time to…

5) Build A Delivery Network

An important part of building apps like shipt and instacart is, creating a delivery network.

There are a lot of things that go into it.

And it is one of the most important aspects of the business.

After this, it’s time to.

6) Sign Up Partners

Depending on whether you are working on a dedicated model or an aggregator model, you may or may not need to do this.

And once this is done, it’s time to

Grocery Delivery App Development: Creating Apps Like Shipt and InstaCart

With all preparations done, it’s time to develop the best grocery delivery app that the market will see.

Here’s the process.

7) Hire Mobile App Developers

The first thing you need to do is hire a mobile application developer.

There are various ways you can do it in 2023.

Some popular methods are, as mentioned below:

• Hire Freelancers – if you have a small project or varying needs, the best option is to hire freelancers.
• Outsource to An App Development Company – let an expert mobile app development company handle the work while you rest worry-free.
• Assemble In-House Team – if the budget for it and the need for a dedicated team, this is something you should explore.
• IT Staff Augmentation – already has an in-house team and wants to acquire experienced developers for a period of time. IT Staff augmentation has got you covered.

These are some of the most popular hiring methods.

Now, regardless of the method you choose, there are some things that you should keep in mind.

Always check their

• Portfolio
• Team experience
• Expertise
• Client testimonial
• Past projects

This will help you make sure you are working with the right partner.

8) Idea Validation

You already have an idea for grocery store development.

However, before you convert it into reality, you need to validate it.

There are various ways to do it, like PoC.

But the main goal is to check whether or not the idea is feasible.

If it’s not, you can use one of the other variations.

And if it is, we move forward to planning.

9) Set Development Parameters

Without a proper plan, development can be confusing.

iOS vs Android, which tech stack, development methodology, there are just a lot of things.

Therefore, we sort it out and set parameters before starting development.

• Finalize App Platform

The first thing you need to choose is,

Android App Development Company

Or

iOS App Development Company

Both of these are native platforms and offer amazing performance.

However, if you are looking for something different.

You can also go with

React native app development services for hybrid app development.

• Build Tech Stack

Tech stack refers to the technologies used for mobile app development.

If you want to create a successful grocery delivery app, it’s important to choose the right tech stack.

Because it can affect

Performance

Development cost

And development process

Let’s move to the next process.

• Choose A Development Methodology

Choose the software development methodology for desired results.

There are many popular options like TDD or Agile.

Go with the one that best fits your development needs.

10) UI/UX Design

With all said and done, it’s time to start development work.

The first part of development is:

Front-end development or client-side development.

This is where the UI/UX design of the platform is made.

11) Shipt App Development

After the front-end, it’s to create back-end Shipt App Development.

This is where the source code of the app is written and the final version is created.

By all means, this is the most important part of the development.

12) Testing

Following the development, the app is sent for testing.

 Mobile app testing by the QA team makes sure the solution is free of bugs and errors.

If there are any, the necessary changes are made.

And then it is sent for deployment.

13) Launch The App

The process to launch an app may differ based on the platform.

But in any case, it takes upwards of two weeks at most.

Once the grocery delivery app is launched, most of the work is done but not all of it.

As this is where the maintenance starts.

This is the process to develop a market-leading app like Shipt for your business.

Now, let’s look at some essential features to include in the platform.

Essential Features For Shipt Shopper App, User App, & Admin Panel

Features are the driving force of any application.

And when you are developing a complex app like grocery delivery, it’s important to include the right feature.

As such, the app can be divided into three parts:

• Shipt user app
• Shipt app for shoppers
• Admin Panel

Let’s look at some essential features that you should include in three parts of the app.

Advanced Features For Grocery Delivery Apps

• Chatbot Integration
• Special Order
• Personalization
• Schedule order
• 1-hour delivery
• Choose delivery partner
• Dietary preferences

We are almost at the end of our blog. And you know just about everything when it comes to creating a grocery delivery app like Shipt.

Now, you may be wondering how much all of this costs.

Let’s answer this question in the next section.

Grocery Delivery App Development Cost

“How Much Does It Cost TO Build On Demand Apps?”

This is one of the biggest questions in the client’s mind when discussing developing a grocery delivery app.

Well, cost to build an on-demand grocery delivery app ranges from $15,000 to $350,000.

The cost depends highly based on the complexity.

For instance,

• Cost to develop a simple grocery delivery app – $15,000 to $120,000
• Cost to develop average grocery delivery app – $120,000 to $200,000
• Cost to develop complex grocery delivery app – $200,000 to $350,000 +

Other various factors may affect the cost.

Therefore, if you want to learn more about the accurate grocery delivery app development cost, this is something an on-demand app development company can help you with.

How Long Does It Take To Create Shipt App

Just like the development cost, the development time depends on various factors.

The average time to develop an on-demand app ranges from 12 weeks to 12 months.

A breakdown of development time is:

Develop Your Own Instant Grocery Delivery App

Shipt app is an exemplary grocery delivery platform

And there are a lot of businesses as well as startups who want to build their own apps like shipt and InstaCart.

Without a doubt, it’s very beneficial and helps your business make millions.

So, if you want to develop a market leading on-demand grocery delivery app like Shipt, consult a grocery delivery app development company.

Niketan Sharma

Niketan Sharma is the CTO of Nimble AppGenie, a prominent website and mobile app development company in the USA that is delivering excellence with a commitment to boosting business growth & maximizing customer satisfaction. He is a highly motivated individual who helps SMEs and startups grow in this dynamic market with the latest technology and innovation.