How to Build A Grocery Delivery Startup?

A Go-to-Market Strategy for Developing an On-Demand Delivery App.

Necessity is the mother of invention. Here, necessity defines ‘convenience’ and ‘invention’ means delivery app. Adding ease-of-life to a customer’s hectic timetable is the major purpose of developing an on-demand grocery delivery startup business. 

How do you think Grofers and BigBasket elevated as the champions of grocery delivery services? People often go bonkers at the first idea of a startup in the grocery delivery business, deeming it an extremely daunting & impossible-to-run. We believe challenges can strengthen the spirit of an entrepreneur, which they should take by storm. 


Opening a grocery delivery startup business isn’t just a ‘fair’ idea, but a first-rate one. We all have that one friend who shares his/her sordid tales of despair & hopelessness even with out-of-the-box thinking abilities. We don’t want you to succumb to the fear of challenges, but expect you get ready for shaping a future while earning an irresistible victory in the eCommerce sector. 


Cost & investment go hand-in-hand, but what most people make gaffes at is by establishing a synonymous relation between them. Costs don’t pay up later. Investments DO, much higher than profitable returns. 

BigBasket, Grofers, InstaCart – the mind-boggling grocery delivery businesses fetch whopping millions of dollars these days. They invested in an uncomplicated idea – delivery of FMCG (fast-moving consumer goods) directly to the customers on demand. 

Statista reported a figure of 2018, back in 2019, that South Korea buys the most groceries online – 19.1%. China was next with 14.0%. The UK and Japan follow a steadily increasing figure of over 7.1%. Online FMCG sales in countries like Brazil and India are currently gaining traction

  • Shopping Platform – Website or Mobile Apps or WhatsApp Business Account
  • Delivery Contractor or Delivery Guy or Valet or any-other-name-you-can-think-of
  • Grocery Business – Small Vending Stores, Supermarket, Wholesaler, etc.

Intertwining them together using a robust, flawless, organized, and super-efficient system helps you garner profits, brand recognition, and multiple partnership offers.


We are at a stage intra-competition supersedes inter-competition. Suggestive of what people might say you can go on to build a platform by investing loads of money without proper planning or strategy. Perhaps, individuals and businesses have faltered more on such expensive maneuvers. 

First things first, define scope & scalability.

            • How many customers can you accommodate right now?
            • How many customers do you want to accommodate in near-future & on wards?
  • How many resources you can spend without going broke? 
  • What are the costs (financial, physical, & mental) you are willing to pay?
  • How do you see the business panning out over the years?

The questions thrown at you are just a sneak-peek of what you should foresee, which, by the way, aren’t intimidating, but telling sorts for conceiving a plan without interlude in sessions. 

e-Commerce and m-Commerce instill a faster throughput for on-demand grocery delivery. Simple as it is, the customers swipe a few actions on their Smart Devices & get orders delivered right at their doorstep. Isn’t that a fantastic action on display?

How to Fulfill On-demand Grocery Delivery?

In the locality of your own, you can start partnering with reliable grocery stores or suppliers. These partners help your provisioning of supplies for instant or on-demand delivery to customers. Ask them for discounts over their profit margins or commissions over customer billings. 

Next, find a delivery agency in your area for transporting goods to homes or locations shared by the customers. Add delivery charges to customer billings for delivery partners. Tariffs can be fixed at per-delivery-charge or percentage-per-order. 

Typical Attributes of an On-demand Grocery Delivery Website

Just like Amazon, a grocery delivery website deliberates on the following:


  • User-friendly Website 
  • Geo-location Tracking
  • Easy Navigation
  • Product Finder or Search Box
  • Faster Payment Gateways
  • Secure Transaction Processes
  • Return & Refund Corner
  • Feedback Collection Point
  • Miscellaneous Query Resolver 

49.7% of households (worldwide) have a computer at home. In developed countries like the US or UK, this figure exceeds over 80%. Though computer sales are declining steadily, people still have multi-purpose uses of them – watching movies or Netflix, playing video games, or shopping. 

We suggest you consider demography details for launching an on-demand grocery delivery website. Perhaps, if not for business applications, a website for communication purposes can be made. 

On-demand Grocery Delivery Application for Modern Consumers


Tech-savvy buyers don’t want to spend much time on opening a website. They thrust their energies on using an app for buying grocery/vegetables, appliances, foods, etc. 


An on-demand grocery app fashions into a facilitator of grocery supplies at the best prices. Before you pin hopes on to it, here’s what customers would want to see in the app:


  • User Profile & Management
  • Product Menu
  • Product Searches, Filters, and Suggestions
  • Quantity Counter & Up-selling Offers
  • Discount Deals & Payment Benefits
  • Shopping Cart & Checkout
  • Payment Gateway
  • Geo-location Tracking 
  • Delivery Options & Tracker
  • Assignment of Delivery Person
  • Feedback (Ratings, Reviews, Recommendations, etc.)

Different Types of Grocery Delivery Businesses 

On-demand grocery delivery businesses enjoy a fair share of competition. Here’s a view:

  • Aggregators 

Aggregators are facilitators of platforms where a grocery store enlists on the app and directly fulfills a customer’s on-demand request of required products.


Meanwhile, a customer or app-user searches for the products, add them into the cart, make payment via options available, and await order confirmation. 


Based on availability of products & delivery persons, a grocery store processes order requests and shares the real-time location of the deliverer. 

  • Marketplaces

Known as a retail mobility solution, marketplaces have their team of delivery professionals. Though sharing most of the attributes with aggregators, marketplaces differ on this note of providing grocery goods to the customers by one of their own. 


  • Single Grocery Stores

Single grocery store owners maintain their own branded apps for start-to-finish deals. This means, right from order placement to order delivery, single grocery store owners manage everything while maintaining and updating their app.

  • Grocery Chains

Mobile technology enables several grocery chains to modernize customer shopping experience with the help of customized apps for buyers. Integrated with features like detailed product information, special offerings, mobile payment gateways, feedback collection, well-crafted loyalty programs, and more, these apps allow seamless experiences for the customers. 

  • Personalized Grocery Apps

Users have direct access to personalized grocery apps for:

  • Creating a grocery list
  • Setting a reminder
  • Sharing grocery information
  • Enjoying grocery shopping

Personalized grocery applications help customers take pleasure in shopping effectively. Several leading App Development Companies create outstanding shopper-centric mobile apps. 

Digital Disruption Of Grocery Delivery Apps 

Two decades into the new millennia and we are witnessing digital disruption in this sector. Raging technological developments, rapidly changing consumer behavior & shopping patterns and cutting edge competition signal a colossal change for grocery owners. 

The retail sector had never been this competitive and grocers are learning right now to seize the opportunities, anticipate competition, augment strategies, and reap profits. In the purview of thriving Smartphone ownership’s, digital disruption has become a requisite. 

eCommerce giants like Amazon are stepping up their games by adding technological advantages, where the level-playing field isn’t currently too broad. Nevertheless, grocers of small or large kinds can harvest and leverage on the modern applications for enriching their businesses. 

Cost Of Grocery Delivery App Development 

When it comes to grocery delivery app development, costs depend on a myriad of factors, such as geographic area, features & functions, duration, platforms (iOS or Android), and so on. 

Estimating a fully-crafted mobile application to run over a large area, the costs may cross between $15000-30000 in developed countries like the US. That being said, a dependable grocery delivery app development company in India may incur costs between $3000 and $14000. 

Go-to-Market Strategy for Developing An On-Demand Grocery Delivery App

strategy for on-demand grocery delivery app

Highly intrinsic businesses like grocery chains or marketplaces evidently focus on data-driven methodologies for developing an on-demand grocery delivery app. Small and emerging businesses are not privileged with extensive financial support for accessing refined data or research. 

In a nutshell, small startup businesses can begin their expeditions with the following:

  • Research & Challenges. Which are the apps currently hovering in the markets? What opinions people have about them? What are the Unique Selling Propositions of different grocery app-based delivery businesses? Identify core challenges in the niche market and direct your research on finding effectively running apps in the markets. 
  • Technology Stack. Some startup owners may find the nomenclature too harsh at the beginning, but it is fundamentally necessary for this sector to learn about App platforms, front-end and back-end development, 3rd party applications, database management, traffic analytics, competitor analysis, real-time analytics, payment gateways, etc.
  • In-app benefits. Customers enjoy rebate programs, loyalty programs, reward points, and various in-app benefits. Meanwhile, creating a competitive atmosphere among grocers for reaching targets & subsequent benefits provides an edge. You can perform research on these strategies for developing premium applications. 
  • Customization or Personalization. Buyers tend to switch between the most suitable and profitable choices of grocery delivery apps. Encouraging personalized or customized shopping experience, if plausible, enhances customer satisfaction and ensures revisits. Check the feasibility of launching an app with customer-oriented options. 

Want To Build An On-Demand Grocery Delivery Service App? Connect with us for sharing your idea of starting a grocery delivery startup business using an app. We have a proficient team of experienced app developers for studying & analyzing your business needs in the way to develop a solid, marketable, and useful app.