Grocery delivery is another successful part of on-demand services. Basically, people can order grocery sitting at home from their mobile phones and receive ordered grocery at doorsteps. a person can pay directly from the mobile app or website with may payment choices including cards and wallets. no need to go to grocery shop and buy things manually with lots of distraction where you end up buying two-three extra stuff you not need.
Online grocery delivery startups have reduces the inconvenience of the whole process of buying grocery by going physical grocery stores. This enabled consumers to save a lot of time buying much quickly from home.
If you are aware of online food ordering, you will go to get comfortable with this easily. There are some startups already leveraging the market like Instacart that deliver the grocery on your doorstep.
If we talk about the Instacart, It founded in 2012 and becomes one of the very popular apps in on-demand economy valuing $3.4 billion and growing.
As per the US Department of agriculture, US consumers spend more than $700 billion annually on groceries and food, which shows a clear opportunity for newcomers and startups.
How it works:
There is a mobile app and our website for users or consumers where they can browse the products by categories and place the order from the same interface. Delivery boys get the notification about the order, anyone who accepts the order, go to the nearby store and purchase the goods from the order list. He delivers the ordered stuff to the delivery address and gets paid for that delivery.
There are mainly 3 user segments working in the system:
Consumers have a mobile app from which they can browse the groceries and order by paying from the app’s inbuilt wallet or other payment options. There is also another option of the mobile app where people can order from a website with the same flow.
Consumers can schedule their deliveries for a specific date and time and able to give tip to the shopper in advance.
Shoppers are who buy the ordered product from the respective store and deliver it to the consumers. They have their side of the mobile app where they get the orders list. Shopper can pick the order and then it will be assigned to him. After receiving the order, a shopper finds a relative shop, pay there on that shop and deliver the order items to the given delivery address. The shopper’s app gives details including delivery address pinned on map and consumer’s contact number in case of communication needed while shopping or finding the address.
Shoppers are paid per successful delivery. They have tie-up based on the distance and time of delivery based on system module.
Stores provide the ordered grocery. Based on the startup’s revenue model, the store’s earning is depended. In some cases, stores give grocery on same rate and app sale it with some margin. Stores get the product sold where the app gets some commission by selling it at a higher cost. The app also pays to shoppers from this cut and it is generally of around 15%.
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