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What Is On Demand Grocery Delivery

Instead of buying their favorite peanut butter, shampoo, facewash or all sorts of grocery items at the nearest supermarket, customers can swiftly order on-demand via calls or hyperlocal grocery delivery app. The fulfillment of orders within a short span (30 minutes – 2 hours) is on-demand grocery delivery. Benefits – save time & fuel while enjoying convenience!

How It Works

On-demand hyperlocal grocery delivery can be facilitated by various means, such as phone calls, WhatsApp, or software applications. Any orders processed by the aforementioned mediums for immediate delivery of groceries satisfy the activity of on-demand grocery delivery. The modern use of technology and communications wrap it into a special platform for offering easy-to-use solutions.

Importance Of Hyperlocal Grocery Delivery – Market Scenario

Undoubtedly, traditional brick-and-mortar grocery stores still dominate against their competitors like Amazon Fresh, Grofers, BigBasket, and various e-commerce brands.

You can see a spark in these traditional grocery stores, supermarket chains, etc. to feature in the ‘user-friendly’ section of grocery delivery business. Be it through adopting order-via-call or order-via-app, they have started aligning their core business operations to meet customer requirements.

The demand for daily essentials in the hyperlocal e-grocery market witnesses a triple-digit growth. For instance, this market recorded a growth of 106% in India in the first quarter of 2019. The FMCG sector had joined the online retailing in rocky waters, but it slowly steadied after overcoming several obstacles.

In countries like UK, Brazil, and India, the penetration of FMCG e-commerce had been slow in 2019, but picked up rapid growth in 2020 after Covid-19.

Business Models Of On Demand Hyperlocal Grocery Delivery

A business thrives on the money it makes. A concrete model devised for business allows streamlining financial arrangements accordingly. We discuss 4 business models for grocery delivery startup business.

Offline – On Phone calls

The phone-based delivery model has been there for the last two decades or more. People not savvy enough with apps or online interfaces prefer placing their orders via a call to the nearby store. Inconsistencies with orders and manual errors remain a major pain point in this model. Stores can charge delivery fees on orders for doorstep delivery.

Offline – through messaging

Except for a working phone and network connection, offline ordering in this process goes smoothly and easily. IMs like WhatsApp & Telegram are useful for booking grocery orders. Or, one can push a stream of SMS (if the order is long) for registering an order with the store. Again, it collects delivery fees for home delivery.

Online – through aggregators

Food aggregators can have their website or mobile application for collecting orders from the consumers. The aggregators only offer an order-only platform for customers to place their orders and charge commissions (10% – 30%) per order from the grocery store or marketplace. Grocery stores will have their personnel for order deliveries.

Online – through a native app

The tech-savvy people need no introduction to the highly versatile and convenient benefits of native apps, where they can easily browse through products, specify quantities, pay online, and review. You can launch your hyperlocal grocery delivery startup business with a logistics team. For revenues, you can charge commissions or flat rate delivery fees on orders.

Product Categories In On-demand Grocery delivery

A perfectly aligned range of products & their immediate availability keeps the customers happy. We highlight the most popular categories for on-demand grocery delivery these days:

Fruits & Vegetables

Food grains, Oils & Spices

Bakery, Cakes & Dairy


Snacks & Branded Foods

Beauty & Hygiene

Baby Care

Cleaning & Household

Kitchen, Garden, and Pets

Eggs, Meat & Fish

Gourmet & World Food

The expansion of categories & sub-categories is a subjective topic. Any grocery store or supply chain should have adequate stock updates and professional inventory management for catering to on-demand orders made by customers.

How To Start An On Demand Grocery Delivery App

Wondering how to start a grocery delivery business? Well, you can know that the headline-making grocery delivery apps like Grofers, BigBasket, Amazon, etc. are rocking almost every online platform, including display & search results, social networking sites, and online forums.

Once a fervent pastime for people, grocery shopping has brought an era of swift shopping using their respective Smartphones. Relevant as it stays to the course, on-demand grocery delivery apps have improved grocery shopping habits across the globe.

At Cruzotec, we are earnestly waiting for entrepreneurs to hop into a new venture with our high-end on-demand grocery app development services. Our team of professionals pours their hearts out in creating an amazing app for you to connect local grocery stores, process grocery delivery orders, fulfill grocery stocks, and real-time tracking minus interruption.

Staying true to the platform, grocery apps help anyone browse a wide array of categories of products, participate in zero-queue billings, make hassle-free payments, and commit seamless checkouts.

Once a delivery guy sets out with the order, customers can track their movements until they arrive at the doorstep. Home delivery of groceries made soft as butter.

Selecting the target Market

Targeting the demography within geographical limits lifts off the lid. For the hyperlocal e-grocery market, the analysis of competitors’ offerings plays a pivotal role. Heading straight to the app review & rating section (of a tough competitor) gives an idea about their shortcomings & advantages. For your debut as an entrepreneur, you must select the target market precisely.

Selecting product categories

Offering the same as your competitors do? Or, offer a large range of products that customers don’t know about? You can pitch a wide array of categories consciously with the ability to relate to customer needs & expectations. Also, if you want to incorporate a new category, you should take the onus of educating the prospective buyers. 

Single Vendor Business

The format of a single-vendor business defines a simple business relationship with a single supplier, enabling volume leverage, attractive pricing, streamlined and regular deliveries, and inventory control. The scope of business exploration remains limited here.

Multi Vendor Business – Aggregators

Multiple suppliers and competition enhance the value of transactions while helping you to manage demand fluctuations with enough stock volumes. Though you can’t leverage each supplier, you can expand your startup’s ability to find success through multi-vendor ecommerce app.

Application Platform

Available for iOS and Android platforms, you can grab the opportune moments of consumerism. We recommend you to perform research on what the common consumers use – Android or iOS? You can configure your strategy to market the product.

White label Application

Want to hit the ground running with a readymade grocery delivery app? The white-label application helps you hit the markets without extensive engagements or investments. We can make a white label on-demand hyperlocal grocery delivery app for you. Connect with us today.

Payment Gateway

Popular payment gateways like RazorPay, PayU, LazyPay, Stripe, WorldPay, Paypal, etc. assist smooth and easy transactions for processing direct and card payments for e-businesses. SSL encryption standards ensure safe and trouble-free payment transactions.

Invoicing system

A fully-featured suite of invoicing systems activates a host of features, including customized invoice generation, track time and payments, mileage, generate reports, automate workflows, and swift messaging to the recipients.


If you can have a team of delivery guys on payroll, your logistics segment gets sorted for sure. For maintaining transparency and professionalism, you should offer training and conduct background checks for assured high-quality services to the customers. We can help with logistics team in select cities too.

Social Media promotions

Statista reports that over 3.9bn active global social media population worldwide prevails. From interesting posts to clickable information on social networking sites, you can actively promote your brand amongst the hugely populous networks.

Print Media promotions

An old-school marketing yet highly successful marketing tool is that of print media. Pamphlets, brochures, flyers, catalogs, and so on with aesthetically-pleasing designs and attractive colors capture the attention of the audience.

Loyalty Program

Why would your customers return to buy from your app? Give them a special reason to shop! Add a loyalty program that benefits their shopping and buying activities. Special coupons or reward points enhance their experience by offering instantly gratifying results.

What are the benefits of Hyperlocal grocery delivery app

Any easy-to-use, visual-friendly, and secure hyperlocal grocery delivery app has fair chances of winning customers quickly. You need to tell your customers why they should buy from this app. Therefore, putting a list of benefits solidifies your position in the market.

Contactless transaction

Cash-on-delivery or COD may become a thing of the past, especially when online payments surge in recent times. In the times of Covid-19, people prefer no-contact delivery of grocery goods.

Create a shopping list

Customers can create a shopping list (with a feature to modify) once and store it for re-orders in the next month. This saves time for creating a new list every single time when they go out for shopping.

Payment Options

Integrated multiple payment options into one, the app provides seamless paying facilities for credit/debit card users, net banking users, UPI users, and other-preferable methods of payment.

Create wishlist/next purchase

People who love to organize will go ecstatic with a ‘create wishlist’ feature to add their favorites for the next purchase. A reliable grocery delivery app can include exciting options with this too!

Maintain favorites/regular orders

Adding, managing, and organizing favorites enable personalized shopping for customers. Your grocery delivery app can entertain this optional feature for the comfort of placing regular orders.

Quick search from a long list

Exploring from a wide stock of products? The product-search-friendly makes shopping easy and quick. AJAX like systems enable suggestions on typing a product’s few letters.

Special Discounts and offers

Rewarding a buyer with free samples, giveaways, special discounts, coupons, and various offers help a brand sustain their frequency of visits. You should include these specials for the consumers.

Loyalty program

Starbucks’ loyalty program was an absolute hit among the customers, who returned again and again. You can install a similar marketing strategy for getting your customers to choose you over others.

Track Order

Real-time tracking enables customers eagerly waiting for their orders to have active know-how about the delivery guy. This is quintessential for all doorstep product delivery services.

Multiple vendor options 

Managing the supplies becomes straightforward with multiple vendor registration on your app. A buyer can immediately switch to another vendor or create a multi-order for groceries.

Critical Features Of An On Demand Hyperlocal Grocery Delivery App

The on demand grocery delivery app is an integrated solution equipped with features for grocery shopping & delivery, easing the lives of grocers, delivery contractors, and customers. Decking a host of features, the grocery delivery app includes:

Admin panel

The administrators will find the panels useful to have an operational base for studying business insights, product management, payment options management, stores, and more.

Vendor app

Vendors will discover a myriad of features for inventory management, product listing, category development, pricing of products, payment collection, and much more.

Multi vendor platform

Multiple vendors on the app receive a feature-rich platform for managing their products and sell them to the customers. You can provide an additional host of features for boosting efficiency.

Product categories

Enlarged group of product categories and subcategories define the depth of shopping visits. You can strategically include various multiple vendors for the first time for offering distinctive varieties.

Push notification

How do consumers know about a new offer or a feature update? The friendly push notifications convey the messages without the user being in the app or using the device at a specific time.

Delivery tracking app

Google Maps and various others have helped businesses and customers utilize the geo-location tracking of orders from a grocery store or warehouse to the appointed destination.

Schedule a pick up

Everyone need not necessarily have to be in the right place at the time of order placement or delivery. Therefore, a pickup scheduling option allows time management for delivery contractors.

Schedule a delivery

Customers can schedule a delivery at their preferred time. You can facilitate this option to customers or select time-slot like options to manage multiple orders during rush hours or heavy traffic.

Easy registration and authentication

Quick-start enrolling for grocery stores, custom profile management, and registration process. The grocery app only requires valid details for creating genuine accounts of users (all stakeholders).

Inventory Sync

Inventory management & control taken swiftly through inventory sync helps manage stock levels across multiple channels, check bulk and regular updates, view live listings, and prevent overselling.

Quick cart creator

A grocery delivery app should feature a virtual cart for shopping for hundreds and thousands of products. An easy-to-setup, customizable, and compliant cart is a critical feature in the app.

Quick search functionality

Customers won’t bother scrolling a long list and rather find their favorite product using ‘quick search functionality.’ An app’s swift activities to list the products that customers want to make it a success.

Maintain Favorites

Organizing favorites in alphabetical order or any distinctive chronology sets a brand apart. Customers will enjoy this feature of maintaining their favorites or bookmarking regular orders.

Web application

The e-commerce giants like Amazon and Flipkart energized their campaigns with consumer-friendly web applications for people who frequently utilize their Desktops, PCs, or laptops.

Mobile responsive website

With more than 52% of Internet users preferring mobiles over desktops, a mobile-responsive website encourages the chances of reaching out to this specific group of customers.

Mobile App – Android & iOS

Millions of Android and Apple users prefer versatile on-demand grocery delivery apps. We can design your app according to their specific guidelines for successful submissions.

Good Quality images

Images intensify the attraction point than plain and simple text. By including high-quality and relatable images, a brand can easily attract and delight the general audience towards their products.  

Tax configuration and invoicing

GST and tax compliance is an evident part of invoicing these days. Therefore, a robust and reliable app with tax configuration and invoicing system simplifies the method of collecting orders.

Top Aggregators Ruling The Market

Brands like Grofers and BigBasket thrive in the market by creating intuitive, engaging, user-friendly, reliable, and relevant grocery apps for startups, grocery stores, grocery chains, and newly founded businesses.

Instacart is one of the most popular apps these days in the United States with millions of engagements every month. The grocery delivery aggregators induce profits off their intensively-managed business models.

According to Statista, Instacart saw app downloads growth by 218 percent from February to mid-March in the US, based on consumers’ apprehensions regarding visiting grocery stores during the Coronavirus outbreak. This app made over 10mn USD after selling nearly $700 million worth of groceries. The grocery delivery startup mulls stupendous growth in the future.

Launching your hyperlocal grocery delivery startup requires you to pick the right mindset and resources. At Cruzotec, we can provide the readymade grocery app in your desired brand’s name and colors within 7-10 days. Connect with us today at 099370 37568. Visit this page to know more.