On-demand grocery delivery apps like Shipt are changing how we 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)
And average annual spending on online grocery ordering shall grow to $1,524.84 per customer.
Many more stats show how big and rich the market has grown.
This has attracted a lot of businesses throughout the US market to build grocery delivery apps. If you are one of these, this blog is for you.
Here, we shall be discussing all that you need to know about building a grocery delivery app like Shipt.
Shipt App: Same-Day Delivery Grocery App
Shipt App.
This is a mobile app that allows users to order groceries and more 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 the 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
Breads & Bakery | Meat & Seafood | Alcohol | Snacks & Candy |
Baby & Toddler | Frozen | Dairy | Pantry |
International | Deli | Produce | Beverages |
And the “From The Home”
Kids’ Apparel | Toys | Entertainment | Kitchen & Dining | Household Essentials | Personal Care | Gift & Party |
Home Goods | Apparel | Electronics | Patio & Outdoors | Sports & Outdoor | Pets | Beauty |
Shit is a big platform, to say the least.
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.
He hated going out for delivery day and day again. (A lot of us can relate to that.)
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 has 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 has expanded 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’s 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.
This is one of the largest revenue sources for apps like Shipt.
There are two types of membership.
They 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 helps make 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, various grocery stores partner with the Shipt platform.
This includes
- Walgreens
- 7-Eleven
- Dagostino
- Dans Fresh Market
- Dicks Market
- Dierbergs
- Weis Markets
- Western Market
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 how the grocery delivery app is 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.
- Download The App: as a hybrid mobile application, it is available on both iOS and Android platforms.
- Register: it’s time to create a profile. You can do it with an email, phone number, Google ID, or even Apple ID.
- Membership: To use grocery delivery apps like Shipt, users need to buy a membership. There are two options, monthly or annual. Apart from this, they can also choose one-time delivery.
- Choose Category: there are more than 20 categories. Users can choose one or multiple to explore items.
- Explore Offering: there is a range of offerings on the platform. However, if you can’t find what you need, there is also a special option for that.
- Choose Delivery Option: there are various delivery options like 1-hour delivery, same-day delivery, and so on.
- Provide Location: add the address to which the user wants stuff to be delivered.
- Pay: pay for services with in-app eWallet integration.
- 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 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 the USA
Instacart is the most downloaded grocery delivery mobile app with over eight million downloads.
More often than not, people compare Shipt to Instacart.
So, is Shipt Better Than InstaCart or is it the other way around?
Well, let’s compare them head to head and find out which one of them is better.
What are the major differences?
Well, in most ways, Shipt and InstaCart are 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.
Shipt | InstaCart | |
Monthly Fees | $10.99 | $9.99 |
Delivery Fees & Membership | 0 over 35$ | 0 over 35$ |
Delivery Fees(non-membership) | $10 | $3.55 on 35+ orders + Additional Fees |
Pickup Fees | None | Depends |
Dietary Preferences | Available | Not Available |
Preferred Delivery Partner | Available | Not Available |
Which is Better, Shipt or Instacart?
While both 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 has a 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 that can convert your idea into reality.
But it’s always better to take inspiration from an 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:
Apps |
Platform |
goPuff | iOS/Android |
Instacart | iOS/Android |
Rappi | iOS/Android |
FreshDirect | iOS/Android |
OurHarvest | iOS/Android |
Onfleet | iOS/Android |
Growcer | iOS/Android |
Mercato | iOS/Android |
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 App Like Shipt?
The first question a client asks is,
“Why should I invest in Grocery Delivery App Development?”
But rest assured, there are plenty of 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.
Instead, they look for “grocery delivery app near me.”
This is one of the big reasons behind the popularity of grocery delivery apps.
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 reasons 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.
The grocery delivery industry generates billions in sales revenue.
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.
One of the most popular small business app development ideas is, a grocery delivery app.
How?
Because people love ordering from grocery delivery stores.
Why not?
Because it’s more convenient.
That’s why it’s the right time to create the Shipt app.
Well, you must wonder who is the app is for. We shall answer this question in detail in the section below:
Who Should Build a Grocery Delivery App?
Not everything is for everyone, right?
So, who 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 corporations.
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 a big returns.
Grocery Chain Owners
Well, if you don’t own a single store but an entire chain, then an app like Shipt is a must for you.
Shipt-like app development solutions that can leverage your business.
This helps increase revenue and customer base.
It’s also 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.
What they do own is an online marketplace.
You can build an online marketplace for grocery delivery.
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 that 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 backup plan.
2) Market Research
Market research is an essential step.
Information collected during this process fuels the entire development process.
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 launch a successful mobile app.
3) Choose A Business Model
It’s time to choose a business model.
Some of the top business 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 several things that you need to deal with.
This includes
- Business registration
- Compliance
- Acquiring licenses
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 is, creating a delivery network.
There are a lot of things that go into it.
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.
Once this is done, it’s time to
With all preparations done, it’s time to develop the best grocery delivery app that the market has seen.
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 some 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 Testimonials
- 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 not, you can use one of the other variations.
If it is, we will move forward with 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 costs
And the development process
Let’s move to the next process.
-
Choosing 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 that 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 will be made.
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.
This is where the maintenance starts.
This is the process of developing 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 features.
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 the three parts of the app.
Shipt user app | Shipt app for shoppers | Admin Panel |
Register | Register | User base management |
Control Membership | Accept/reject the delivery request | Delivery Partner Management |
Choose Grocery | Order details | Fleet Management |
Set Address | Real-time route optimization | Inventory management |
In-App Communication | Communicate with user | Stores Management |
In-App Wallet | Payment Management | Revenue Management |
Push Notification | Communicate with store | Analytics |
Advanced Features For Grocery Delivery Apps
- Chatbot Integration
- Special Order
- Personalization
- Schedule order
- 1-hour delivery
- Choose your delivery partner
- Dietary preferences
We are almost at the end of our blog. 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.
We’ll 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, the 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 an average grocery delivery app – $120,000 to $200,000
- Cost to develop a complex grocery delivery app – $200,000 to $350,000 +
Various other factors may affect the cost.
So, 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.
The breakdown of development time is:
Phases |
Time |
Research | 1-2 Weeks |
Idea validation | 1 week approx |
Planning | 2 weeks |
Strategy | 1 week |
MVP | 2-3 weeks |
Designing Process | 2-3 months |
Dating App Development | 4-6 months |
Testing | 2 – 4 weeks |
Deployment | 2 weeks at most |
Develop Your Own Instant Grocery Delivery App
Shipt app is an exemplary grocery delivery platform
There are a lot of businesses as well as startups who want to build their own apps like Shipt.
Without a doubt, it’s very beneficial and helps your business make millions.
If you want to develop a market-leading on-demand grocery delivery app like Shipt, consult a grocery delivery app development company.

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.
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