As consumer habits shift and technology evolves, grocery delivery apps must offer more than the basics to stand out from the competition. Established giants like Instacart and Amazon Fresh dominate the online grocery market, yet there's ample opportunity for newcomers building custom software solutions. In this article, we explore the business models, delivery app types, key trends, and share steps and features essential for successful grocery delivery app development in the coming years.

What is a grocery app?

A grocery app is an app that helps users shop for groceries online. Instead of going to a store to buy food and other household items, you can use this delivery app to order them with just a tap on the screen.

Think of a grocery app like an online store for your everyday needs, similar to how you might buy clothes or gadgets online. You browse different categories, pick items you want, and add them to your virtual cart. Once you're done, you can pay for these items through the app itself, and then you can choose to either have them delivered to your doorstep or ready for you to pick up at a nearby store.

Is it worth developing grocery delivery apps?

The grocery app market is rapidly transforming, spurred by changing consumer habits and technology. According to Statista, in 2024, the number of online grocery shoppers in the U.S. was around 163 million, up from 87 million in 2019. This growth was accelerated by the COVID-19 pandemic.

Market structure

1. Retail delivery: Direct grocery deliveries from supermarkets like Walmart and Amazon Fresh. This segment is the largest, with a market of $599 billion in 2024.
2. Quick commerce: Focuses on fast delivery, often within minutes, through services like Instacart and platforms such as Gorillas.
3. Meal kit delivery: Offers fresh ingredient boxes, often on subscription, with services like HelloFresh.

Global trends

Globally, the grocery delivery market was around$786.80 billion in 2024, growing to $1,271 billion by 2028. China leads with projected revenues of $266 billion due to mature logistics and a strong customer base.

User trends

User penetration is estimated at 20.1% in 2024, with 2.1 billion users expected by 2028. The U.S. market surged in demand during the pandemic, though growth is slowing as economic uncertainties make consumers more cost-conscious. Traditional retailers provide extensive services with same-day food delivery, while quick commerce redefines convenience with rapid delivery of select products.

Competition in the online grocery market

The grocery delivery app market is highly competitive, new entrants must differentiate themselves through unique features, superior user experience, or niche markets. This can be challenging, especially with limited resources and brand recognition compared to big players.

Companies stand out by offering unique items, like local or specialty products, to meet specific customer needs. Fast delivery, low prices, discounts, and membership perks help attract budget-conscious shoppers. Modern tech features, such as voice ordering and smart device integration, give companies an advantage. Big players have a lot of market control because of their size and brand, but new technology and changing customer preferences give newcomers in grocery app development a chance to compete.

Even though there are delivery apps like Uber Eats that dominate the market, startups can still offer users something new and have their piece of pie. Companies must adapt to evolving trends to effectively capture and retain customers.

Types of grocery apps

In this section, we'll make an overview of the types of grocery delivery apps that entrepreneurs might consider developing. Each type has its own features and benefits, so it's important to understand what suits your business model best.

Online grocery delivery apps

These apps let customers order groceries and have them delivered to their homes. They're particularly useful for people who want to avoid the hassle of going to a store. Instacart, a grocery app development solution, partners with local stores to deliver groceries straight to your door. Shoppers pick and pack your items, and a grocery delivery driver brings them to you, saving you time and effort.

Grocery aggregator apps

Aggregator apps work as middlemen, connecting various grocery stores to customers. They don't stock products themselves but allow users to compare prices and availability from numerous stores. Just like Uber Eats connects restaurants to customers, these mobile apps connect stores to shoppers. An example would be Postmates, although it started with food delivery, it now collaborates with grocery stores too.

Meal kit delivery apps

These specialized grocery apps deliver ingredients for specific recipes to your home. They're great for people who want to cook but dislike grocery shopping or planning meals. HelloFresh is a popular mobile app in this category. It offers a subscription service where customers receive pre-portioned ingredients for recipes chosen based on their preferences.

On-demand grocery apps

On-demand apps focus on delivering groceries in a very short time. These food delivery apps are perfect for urgent needs, like when you forget an ingredient for dinner. GoPuff is an example, promising delivery of snacks, drinks, and essentials in a speedy manner.

Business models

Now that we've covered the different types of grocery delivery apps, let's explore the various business models that entrepreneurs can consider for grocery app development.

Commission-based model

This is a popular option for aggregator apps and online grocery delivery services. In this model, the delivery app charges a commission fee to the grocery stores or partners for each order placed through the app. For instance, Instacart takes a percentage from the stores it partners with for every sale made through its platform. This model works well if you have partnerships with multiple stores or suppliers.

Subscription model

Some grocery delivery apps, like meal kit delivery services, use a subscription model. Users pay a recurring fee, often monthly or weekly, to receive regular deliveries. HelloFresh offers plans based on the number of meals and servings. This grocery business model provides steady revenue and fosters customer loyalty, as subscribers tend to remain engaged over time.

Freemium model

With the freemium model, users can download and use the mobile app for free but pay for additional services or features. A delivery app might offer free basic grocery shopping list features but charge for premium services like personalized health and diet recommendations or advanced budget tracking features. It's a way to attract users with free services and then convert them into paying customers for added value.

Ad-based model

In this model, the app generates revenue through advertisements. Grocery delivery apps with a large user base might allow third-party ads targeting relevant products and services. While less common for grocery apps, this model can work if the app has other engaging content or features that keep users returning, thus providing advertisers with continual exposure.

Hybrid model

Some grocery apps might combine features from different models to maximize revenue. For example, an app could use a commission-based approach with partner stores while also offering a subscription for premium grocery delivery services or exclusive deals. This flexibility allows the grocery business to cater to a wider range of consumer needs and optimize its revenue streams.

To choose the right business model, you need to analyze your target audience, understand your market, and ensure that the model aligns with your grocery business goals. Once you decide on a model, you can move forward in the app development process.

How to start grocery app development? Step-by-step guide

Analytics and planning

To ensure that the final product meets user needs and achieves business goals, you need to do some planning first. Let's break down this preparation phase into key steps.

1. Gathering data and analyzing the market

Understanding your online grocery market is crucial. Conduct surveys and focus groups to learn about potential users' grocery shopping habits and preferences. Analyze competitors to identify gaps your delivery app could fill. Use this information to refine your mobile app's features and user interface. Tools like Google Analytics and similar platforms can provide valuable insights into user behavior trends.

2. Choosing platforms

The next step in your grocery delivery app development journey is deciding which platforms your app will support. Will it be available on iOS, Android, or both? Consider your target audience's preferences and technology use. For instance, if your potential users primarily use Android devices, it makes sense to focus on that platform first.

3. Choosing platforms

The next step in your grocery delivery app development journey is deciding which platforms your app will support. Will it be available on iOS, Android, or both? Consider your target audience's preferences and technology use. For instance, if your potential users primarily use Android devices, it makes sense to focus on that platform first.

Customer app

1. User registration and profile management: Easy sign-up and management of personal details.
2. Product search and filter: Search with filters for categories, brands, and nutritional info.
3. Shopping cart and checkout: Simple cart management and a secure checkout process.
4. Order tracking: Real-time updates on order status and delivery.
5. Payment options: Payment methods like credit/debit cards, e-wallets, and cash on delivery.
6. Personalized recommendations: Suggest products based on browsing and purchase history.
7. Review and ratings: Ability to rate and review products or services.
8. Loyalty programs and discounts: Access to rewards, coupons, and special promotions.
9. Notifications and alerts: Receive notifications on order status, deals, and stock availability.

Store owner app

1. Product management: Add, update, or remove products along with descriptions and images.
2. Inventory management: Monitor stock levels in real-time and automate restocking alerts.
3. Order management: View, process, and update orders efficiently.
4. Sales analytics: Access reports on sales performance, customer trends, and best-selling products.
5. Promotions and discounts: Create and manage discounts, offers, or special deals.
6. Customer interaction: Tools for direct communication with customers for feedback or support.
7. Payments: Manage and track payments received, refunds, and transaction history.
8. Delivery management: Coordinate grocery delivery schedules and routes if managing a delivery fleet.

1. Registration and profiles: Secure sign-up process with profile and vehicle details.
2. Order alerts: Receive notifications for new grocery delivery requests and the option to accept or decline orders.
3. Navigation: Integrated maps with real-time GPS tracking to guide the delivery person on the most efficient route.
4. Delivery status: Ability to update order status (e.g., picked up, in transit, delivered) in real-time.
5. Earning tracker: View earnings per delivery and track total earnings over a specific period.
6. Communication tools: Direct messaging or call features to contact customers or store owners in case of issues or clarifications.
7. Performance analytics: Insights into delivery performance, such as delivery times, customer ratings, and feedback.
8. In-app support: Access to help or support for troubleshooting issues related to food delivery tasks or app functionality.

Creating a Minimum Viable Product (MVP) with core features first lets you test the market and gather user feedback before expanding. To choose the key features, you can use a prioritization method like MoSCoW. It helps teams categorize features into four groups: Must-Have, Should-Have, Could-Have, and Won't-Have. ‘Must-Have’ features are the mobile app's core functionality, like a checkout process. ‘Should-Have’ features are important but not critical, such as advanced search filters. ‘Could-Have’ features enhance user experience but can wait, like wishlist capabilities. “Won't-Have” features are not included in the current grocery app development phase.

Or you can use another method like the value vs. effort matrix. This method involves plotting features on a matrix based on their expected value against the effort or cost needed to implement them. High-value, low-effort features are prioritized, as they provide quick wins. Low-value, high-effort features may be reconsidered or postponed.

4. Creating a roadmap and timeline

Finally, develop a clear roadmap and timeline for your mobile app development process. Break it into stages, assign tasks to team members, set realistic deadlines, and establish checkpoints to monitor progress.

As a grocery app development company, we help our clients prioritize and plan features at the stage of analytics. We describe each feature in the form of user stories and estimate the time needed to complete them.

Design

Designing a delivery app involves creating an intuitive, visually appealing, and efficient user interface that caters to varied user needs. Here's how you can go about grocery app design:

Designing user flows

Create clear user flows to map out each step a user takes to accomplish a task in your app, like browsing products, placing an order, or tracking a grocery delivery. This helps you understand how users navigate the app and identify any potential friction points.

Wireframing and prototyping

Start with wireframes — basic sketches of the app's layout structure. These blueprints allow you to focus on functionality without getting distracted by design aesthetics. Once satisfied, move on to creating prototypes, which are more detailed versions of your wireframes. Prototypes allow you to test app interactions and get feedback on usability before finalizing the grocery app design.

UI and branding

Work on visual elements like color schemes, fonts, and images to create an attractive and cohesive grocery app design that aligns with your brand identity. Consider how these elements convey your brand's values and message.

At Ronas IT, we can create an interface, design illustrations, branding elements, and anything you might need in terms of UI/UX design. You can check our design works on our website, Dribbble , and Behance.

Development

Let's dive into the process of grocery delivery app development. We'll cover the essential aspects such as choosing your tech stack, necessary integrations, and considerations for mobile app development.

Choosing the tech stack

Selecting the right tech stack is one of the first steps in grocery app development. Your choices will depend on the platforms you plan to support — iOS, Android, or both — and the features you want to include.

For iOS, you can use native languages like Swift or Objective-C. For Android, Java and Kotlin are the native options. If you're targeting both platforms, you might opt for cross-platform app development tools like React Native, which allow you to write code that runs on both iOS and Android, saving time and resources.

On the backend, where data processing and storage happen, consider using Laravel, Node.js, or Django. You'll need a robust backend to handle tasks like user authentication, data storage, and transaction processing seamlessly. Database management with tools like PostgreSQL or MongoDB is crucial for handling large volumes of data, especially in inventory management.

Integrations

Integrations are used to implement certain functionality into your grocery app without developing them from scratch. Here are some critical integrations to consider in grocery delivery app development:

1. Payment gateways: Integrate secure payment gateways like Stripe, PayPal, or Square to facilitate transactions.
2. Inventory management systems: You can integrate with existing systems used by partner stores or develop a custom app solution that syncs inventory data continuously.
3. Maps and location services: For features like store locators or grocery delivery tracking, integrate with geolocation services like Google Maps or Mapbox.
4. Notifications and communication: Use services like Firebase Cloud Messaging for Android or Apple Push Notification Service for iOS.

Grocery app development process

Frontend and backend development

In app development, frontend developers build the layout and integrate user interactions. Backend developers build the infrastructure that handles data requests, performs calculations, and ensures security.

Testing

Conduct thorough testing throughout the app development cycle to catch bugs and ensure your app functions correctly. Testing on real devices helps see how the app performs under different conditions and load scenarios.

Deployment and maintenance

Once grocery delivery app development and testing are complete, you deploy your app on the Google Play Store, Apple App Store, or both. Make sure to comply with each store's guidelines and requirements. After deployment, regular maintenance and updates are necessary to fix any emerging issues and add new features based on user feedback.

When developing apps, we adhere to Apple and Google guidelines to ensure flawless, bug-free performance for quick store releases. We've already assisted over 80 customers in launching their apps. Our app developers ensure stability and address any bugs. Our grocery app development company also offers ongoing support to refine your app and add new features after the initial release.

How much does grocery app development cost?

Designing and developing a grocery app that caters to three distinct user roles — customers, store owners, and admins — involves several factors that influence cost and timeline. These include the choice of native versus cross-platform app development, the complexity of features, and the geographical location of your grocery app development team. Here's an overview of the estimated costs and timelines for both approaches:

Native app development

Native app development involves building separate apps for iOS and Android platforms, using Swift/Objective-C for iOS and Java/Kotlin for Android. This approach often results in superior performance and a more refined user experience but can be more costly and time-consuming

• Cost: Developing a native grocery app for iOS and Android could range from $80,000 to $200,000 or more. This includes design, software development, testing, and initial deployment costs.
• Timeline: Expect the grocery delivery app development process to take approximately 6 to 12 months.

Cross-platform app development

Cross-platform app development uses tools like React Native to build a single app that works on both iOS and Android. This can significantly reduce grocery delivery app development time and costs while maintaining high performance.

• Cost: The cost of developing a cross-platform grocery delivery app generally falls between $50,000 and $150,000. The cost reduction comes from developing a single codebase that serves both platforms.
• Timeline: Typically, cross-platform mobile app development can be completed in about 4 to 8 months, owing to the shared codebase and concurrent testing.

Additional cost factors

1. Complexity of features: More complex features, such as personalized recommendations and advanced inventory management, will increase both costs and timelines.
2. Maintenance and updates: Post-launch, expect ongoing maintenance and update costs, usually around 15-20% of the initial app development cost per year.
3. Geographical location of the team: Rates vary significantly by region. For instance, North American or Western European teams typically charge more than those in Eastern Europe or Asia.

Here's our average costs of React Native grocery app development:

The choice between native and cross-platform grocery delivery app development depends on your budget, timeline, and performance needs. Native development is ideal for a seamless user experience and complex interaction, while cross-platform offers a faster, more cost-effective solution with a slightly broader reach.

To conclude

As the online grocery market grows, developing a successful grocery delivery app requires clear planning and execution. Companies need to use new technologies and keep up with trends to improve their mobile app solutions. Fast delivery, smart device features, and user-friendly designs are key expectations for online grocery services today.

Focusing on convenience, competitive pricing, and unique products can help your delivery app stand out. A strong grocery delivery app development plan should address both technical needs and customer desires for a smooth shopping experience.

Working with a skilled grocery app development company can help turn your ideas into reality. Staying flexible and forward-looking will keep your mobile app relevant and successful in the online grocery world. With thoughtful grocery delivery app development, you can build a loyal customer base and make a mark in the market.