How Much Does It Cost to Develop a Grocery Delivery App Like Instacart?

There is no other way but to admit that online grocery shopping is outpacing the classical brick-and-mortar shops. According to a report, there are around 138 million people are using grocery delivery applications across the United States. This is another trend which online retailing is pushing - the changing patterns of online shopping and digital payment systems. 

The turnover of the grocery delivery business in the US is projected to grow from $68.9 billion in 2020 to $455.2 billion by 2029, which depicts a CAGR of 12.07% (2024 to 2029). 

In the eCommerce market, Instacart is a prominent company with nearly 7 million app downloads globally. If you want to develop a grocery delivery like Instacart, there is one question that will rise in your mind “how much does Instacart grocery delivery app development cost?”  

Depending on which features, platforms, and geo location of the dev team, the costs to create a grocery app like Instacart can start from $35,000 up to $50,000 and more. 

This blog will delve into the factors that influence the cost of developing a grocery delivery application comparable to Instacart, as well as the essential features and strategies for revenue generation. 

Why Should You Invest in an On-demand Grocery Delivery App Development Like Instacart?

The online grocery sector is rapidly expanding due to easy, seamless shopping experience. Many people prefer shopping online to avoid long queues and enjoy products' on-time delivery.

Let's see what grocery industry statistics say:

• Online grocery sales are projected to grow by 20% by 2025, showing increasing demand of apps like Instacart 
• Around 80% of users are adopting grocery mobile apps  
• 85% of households in the U.S. use Instacart for shopping

Reasons to build an on-demand grocery delivery app similar to Instacart:

• Cost-Effective Business Model: These apps often operate with lower overhead expenses than traditional stores, increasing profitability. 
• Increased Customer Loyalty: Features like personalized recommendations, discounts, and seamless user experience increase customer retention. 
• Access to More Customers: A user-friendly, robust app like Instacart allows businesses to reach a wider audience beyond their local area. 

Understanding the Cost of Instacart like Grocery Delivery App Development 

Instacart like grocery app development cost can range between $35000 – $50000 for Android and $40000 – $55000 for iOS. To know the exact Instacart grocery app development cost, you must consider several factors, including app complexity, feature levels, platforms, and tech stacks. 

Factors Influencing Cost to Develop Instacart Like Grocery Delivery App 

The cost of building a grocery app can vary depending on several factors. The specific features included, and the overall complexity of the app are the primary elements that will determine the budget required to develop a successful grocery delivery app akin to Instacart. 

Let's examine the key factors that influence the cost of developing an app similar to Instacart in more detail below: 

The complexity of your application plays a crucial role in determining the cost of developing an on-demand grocery delivery mobile app in the USA. The inclusion of advanced features, integrated user analytics, a shopping cart, and customized animations can increase the overall expense associated with creating a grocery delivery application similar to Instacart. 

Let’s explore a table outlining the costs of building a mobile app like Instacart depending on its complexity, along with a timeline: 

The size of the experts within the development team significantly impacts on the costs associated with establishing an on-demand grocery delivery service. Although testers, project managers, team leads, app developers, and UI/UX designers contribute to project expenses, their involvement can improve project management and execution, facilitating a more expedited app launch.

It’s essential to ensure you hire developers with impressive experience in successfully delivering custom grocery delivery apps.

The location of the development team is another crucial aspect that directly influences the expense of creating a grocery app similar to Instacart.  

For instance, developers of grocery applications in Eastern Europe generally bill between $79 and $140 for each hour, whereas in the U.S., the hourly rates may vary from $50 to $240. Conversely, a team developing an Indian grocery app typically bills between $15 and $85 for each hour of work.

Engaging with a reputable mobile app development company based in the United States is recommended to develop a robust application at a competitive price, while also ensuring adherence to evolving market and regulatory requirements.

Developers employ technology stacks to create on-demand grocery applications akin to Instacart, with variations depending on the specific expertise and financial capabilities of each company.  

Essential mobile app development technology stacks for an Instacart-like on-demand grocery application include: 

• Programming languages - JavaScript, Java, or Kotlin for building the app's front-end and back-end features.  
• Front-end development frameworks - React Native, Angular, or Vue.js.  
• Back-end development frameworks - Node.js, Ruby on Rails, or PHP.  
• Database management systems - MySQL, MongoDB, or PostgreSQL.  
• Payment gateway integration - Stripe, PayPal, or Braintree.  
• Location-based services - Google Maps or Mapbox.  
• Push notification services - Firebase Cloud Messaging or Apple Push Notification Service. 

The cost of developing a grocery delivery app like Instacart includes much time. The process of researching, designing, developing, and deploying an application necessitates the involvement of specialized professionals at each stage for thorough evaluation.

Consequently, the expenses associated with the application may be substantial; however, this investment is essential for guaranteeing the app's quality, functionality, and sustained success.

The cost to build a grocery app like Instacart can vary from $15,000 to $60,000. Here is the estimation of time and money for the app below in the table:  

Considering the aforementioned factors, the expense associated with creating an application akin to Instacart falls within the range of $25,000 to $65,000. 

A comprehensive understanding of these elements is essential for assessing the financial requirements of developing a bespoke grocery delivery application similar to Instacart. 

Key Features to Add in a Grocery Delivery App Like Instacart

A grocery delivery application similar to Instacart typically encompasses various features that influence its development costs. The creation of an app akin to Instacart requires the integration of four distinct panels: one designated for customers, another for vendors, a third for drivers responsible for deliveries, and a final panel for administrative purposes.

The customer panel includes features that provide a smooth and tailored shopping experience. 

• Registration: Easily create an account to start shopping and manage orders. 
• Profile Management: Update personal details, preferences, and payment methods. 
• Browsing Product Listing: Explore a wide range of products with detailed descriptions. 
• Search & Filter: Find specific items quickly using search tools and filters. 
• Shopping Cart: Add and review products before finalizing your purchase. 
• Multiple Payment Options: Choose from various secure payment methods for convenience. 
• Delivery Order History: Access past orders and track your delivery status. 
• Track Order Delivery: Monitor the real-time progress of your order until it reaches you. 
• Schedule Delivery: Select a preferred delivery time for added flexibility. 
• Wishlist: Save favorite products for easy future access. 
• Push Notifications: Stay informed with updates regarding promotions, order statuses, and newly available products. 
• Offers & Coupons: Utilize discounts and exclusive offers to enhance your savings. 
• Rate & Reviews: Provide feedback and evaluations on products to assist others in making well-informed choices. 

A fully integrated and secured admin panel allows app administrators to efficiently manage and oversee the entire grocery app, including the customer and delivery personnel panels.

• Order Management: This feature enables the admin to view a comprehensive list of orders and notify the respective store.  
• Inventory Management: This functionality allows admin to monitor inventory available in the store and manage details. 
• Control Panel: This serves as a comprehensive solution for monitoring and managing all customer orders.  
• Discounts and Promotions Planning: This feature allows the administrator to implement or manage promotional offers and discounts within the application. 
• Reporting and Analytics: The Admin can gain valuable insights to develop strategies that enhance sales and improve user experience. 

Delivery boy panel features help the delivery team to ensure an efficient and timely delivery. 

• Sign Up: Quick registration for delivery personnel with an easy-to-use sign-up form. 
• Dashboard: A user-friendly dashboard that provides real-time insights into orders, performance, and earnings. 
• Delivery Status: Updates on the status of deliveries, allowing the delivery boy to track and manage ongoing orders. 
• Order Request: Access to incoming delivery requests, enabling the delivery team to accept or reject assignments. 
• Route Optimization: Real-time routing suggestions to find the fastest and most efficient delivery paths using traffic and distance data. 
• Chat/Message: An integrated messaging system for communication between the delivery boy, customers, and support teams. 
• Order History: A detailed log of past deliveries, including order information, timings, and customer feedback. 
• Push Notification: Instant notifications for new orders, updates, and alerts to ensure no delivery is missed. 
• Different Payment Options: Integration of multiple payment methods, including cash, card, and mobile wallets, to suit customer preferences. 
• GPS Navigation: Real-time GPS navigation for seamless route management, ensuring precise and efficient delivery tracking. 

The Vendor Panel features enable retailers, store owners, or suppliers to manage their product listings, orders, and customer interactions efficiently. 

• Items Management: Vendors can easily add, edit, or delete products, manage pricing, and update stock levels. They can also categorize products and add descriptions, images, and attributes like size, brand, and nutritional info for grocery items. 
• Order Management: View and manage incoming orders, including details about items, quantities, and delivery addresses. Vendors can mark orders as processed, packed, or shipped. 
• Order Alerts: Automated alerts for low stock, expiring items, or popular products running out, helping vendors maintain a smooth inventory system. 
• Track Payments: Track earnings, view past transactions, and manage payouts. Payment methods include direct deposit, bank transfers, or other financial platforms integrated into the system. 
• Multi-Store/Location Management: This feature allows vendors with multiple stores or locations to manage all locations under one account and optimize each for delivery or in-store pickup. 
• Reject Order: The store manager can reject orders if a product is out of stock, unavailable for delivery, or if specific logistical issues prevent the fulfillment of the order.  

How to Build an App Like Instacart?  

So, you now have an idea of Instacart's grocery app development cost and what features your app should include. But how do you integrate them? Let's see the key steps of building a grocery delivery app like Instacart that meets the evolving demands of today's consumers.

The discovery phase is a foundation for a successful on-demand grocery app development process. Its main aim is to identify the target audience, analyze competitors, and establish key features and functionalities. During this phase, stakeholders can ensure the app meets both user and business needs.

The next stage of Instacart, grocery delivery app development, includes two parts: UI/UX design and design delivery.

UIUX design covers both the app’s visual aspects (UI design) and the user experience (UX design). Team choices made when creating app design define whether potential clients will leave the app within a few seconds or order through it. So, it’s essential to hire the best UI/UX designers to up the chances of the app succeeding.

Next comes the app design delivery process, whose purpose is to deliver the final design to the development team. It includes high-fidelity mockups, style guides, and specifications. It requires requires close collaboration between designers and developers to identify any queries related to design. This phase ensures a seamless transition from conceptualization to development. 

After completing the design and delivery process, it's time to transform the mockups into code and build an app like DoorDash, or Instacart. During the technical development phase, programmers prioritize the application implementation for respective platforms, ensuring compatibility and optimization for both Android and iOS devices.

Mobile app developers use top programming languages like Swift for iOS and Kotlin or Java for Android for Instacart like grocery delivery mobile app development. This stage also includes the integration of the final design, features, and functionalities.

The final phase before launching the product is the testing and refining stage. During this phase, the app undergoes rigorous testing to identify and rectify any bugs or usability issues. It includes both manual and automated testing to ensure the app functions smoothly across different devices. Experienced software testers also conduct different types of testing to enhance the app's reliability, performance, and user satisfaction.

Monetization Approaches for Your Grocery Delivery Application Like Instacart

While comprehending the development expenses associated with a grocery delivery application like Instacart is essential, it is equally vital to investigate viable monetization strategies to guarantee the application's success.

On-demand grocery delivery services, such as Instacart, utilize a range of revenue-generating methods. The following outlines several primary strategies they implement to enhance profitability:

Commission-Based Model

A commission is applied to each order made through the application, constituting the main source of income for numerous grocery delivery services. Grocery suppliers and retailers are prepared to pay this commission due to the enhanced visibility and sales that the platform facilitates.

Moreover, the rates of commission may differ depending on the categories of products or collaborations with grocery retailers.

Collaborative Partnership

Numerous on-demand grocery delivery applications generate income by establishing strategic alliances with various businesses or platforms. This strategy not only aids in attracting a larger user base but also promotes user retention over extended periods, ultimately enhancing overall profitability. Within this framework, the grocery delivery application works in conjunction with external services or platforms to forge mutually advantageous relationships.

Through collaborations with other enterprises, these applications can access new market segments, elevate brand awareness, and facilitate an increase in transactions. By utilizing the expertise and customer reach of partner platforms, the application is able to create supplementary revenue streams while simultaneously improving the customer experience through a broader range of offerings.

Surge Pricing

Surge pricing allows the shopping app to adjust prices in real time based on market conditions, such as during peak hours, special events, or when demand exceeds supply. This strategy typically uses algorithms and real-time data analysis to determine the optimal price increase on top of the base rate. 

In-app Advertising

In-app ads are a popular revenue model for on-demand grocery delivery apps like Instacart. This method involves displaying advertisements, such as banner ads, pop-ups, or sponsored content, within the app's interface.

Delivery Service Fee

The delivery service fee is a key revenue stream for on-demand shopping and delivery apps. It’s added to the total order cost and helps cover operational expenses like driver payments, shipping, customer service, and maintaining the app's infrastructure.

This fee helps sustain the app and supports its development, including costs related to working with an Android app development company.

By incorporating one or more of these monetization strategies, your grocery delivery app can not only compete with established players like Instacart but also build a sustainable and profitable business model.

Partner with VLink for Your Next Grocery Delivery App Development Project!

Partner with VLink to take your grocery delivery business to the next level with our advanced mobile app development services. As a reliable grocery shopping and delivery app development company, we specialize in creating custom solutions that mirror the success of apps like Instacart.

Our expert developers design intuitive, high-performance apps with key features such as seamless user interfaces, secure payment systems, and real-time tracking capabilities. With a proven track record of delivering impactful eCommerce apps for prominent brands, we help businesses expand their user base and drive growth.

For example, we built a retail mobile shopping app that offers a flawless experience across all devices and browsers. By integrating secure payment gateways and providing promotional features like coupons, we enhanced the app's functionality, making it an all-encompassing solution for users. 

As online grocery shopping continues to soar, our innovative app development solutions ensure your grocery business stays ahead of the competition. Let us use cutting-edge mobile technology to help you increase your market visibility and improve customer satisfaction.

Ready to get started? Contact us today to discuss your project and get a clear estimate on the cost of developing an app like Instacart!