If you’re an aspiring entrepreneur looking to make it big in the grocery delivery business, this is your blog! Keep reading
The nomadic lifestyle of the urban population has been one of the definitive features of large cities and towns. The word ‘nomadic’ is stressed because of the ever-changing nature of how we approach our daily lives. The so-called necessities like buying food, traveling to a workplace, and getting milk are stormed by the digital nuances and don’t require us to get them in person but vice versa. If there is any sector that has spectacularly adopted the on-demand app-based model in recent times, it well must be grocery delivery.
Grocery delivery was considered an everyday shopping experience that involved a lot of time and energy expenditure.
But with the advent of on-demand app-based grocery delivery companies like Grofers, Instacart, Shipt, BigBasket, and Thrive Market, and the unfortunate looming of COVID-19, scores of the population all across the planet prefer getting their grocery via these apps. This particular business environment is perfect for aspiring entrepreneurs looking to make it big in the grocery industry. All that’s required is launching a Grofers clone app ASAP!
The Grocery Delivery Business:
There is a reason behind the notion that grocery delivery businesses are very profitable. For instance, the US Market size has skyrocketed from $6 billion in 2012 to nearly $30 billion in 2020 and is touted to reach $50 billion in 2023! That’s quite a rise. It is also stated that about 60% of the US shoppers intend to indulge in online grocery shopping as the coronavirus’s fear is still palpable.
The market share is a mere 10% indicates there is enormous untapped potential in this particular niche market. The interest of the lot is about 50% millennials prefer only on-demand grocery delivery, as opposed to 31% by GenX and 17% by Baby Boomers. With millennials approaching the crossroads of their education and entering into professional life, it is reasonable to assume that the adulation towards grocery delivery apps will remain intact and possibly ascend for at least a couple of decades.
What does Grofers do?
Grofers.com is an Indian on-demand hyperlocal grocery delivery application specializing in grocery, pharmacy, and personal care products. Started as OneNumber in 2013 as a demand-based delivery service, it was relaunched as Grofers epitomized grocery delivery as it was the primary driver of demand and revenue. The startup has been a leaflet for success and has raised over $10 million investment from top players of the industry, a testimony to its monstrous reach and success. The startup is tipped to cross the $500 million mark in revenue and employs around 5000 people even amidst competition from firms like Dunzo, BigBasket, Grocerkey, etc.
Why do people prefer On-demand grocery delivery?
- The Pandemic has ravaged global supply chains and has tarnished supermarkets and grocery stores.
- The intelligent approach of startups like Grofers has managed to keep the supply chain up and running, and thus they’re able to deliver to a significant chunk of the population.
- The value proposition of Grofers and similar firms has been saving time, providing convenience and seems to resonate perfectly with market expectations.
- The ability to deliver exclusive products, on the line of organic labeled ones that aren’t typically found in supermarkets
- Offers and discounts provided by on-demand apps are not matched by supermarkets, and customers are naturally enticed towards brands like Grofers.
- The opportunity to view, save, and order an item later sounds like an improbable task in conventional supermarkets, but not on on-demand grocery delivery apps.
- Return and refund policies are also winners, as they increase customer trust and, eventually, increase sales.
- Given the Pandemic, the inability of traditional components of grocery businesses like stores and supermarkets were unable to quench the exceedingly tremendous demand caused by COVID-19 and crumbled, an opportunity scintillatingly capitalized by the on-demand industry.
What are some of the qualities people expect from on-demand grocery delivery?
- Customers expect the grocery delivery app to boast of a wide range of products from daily requirements, meat, milk, eggs, personal care, and household goods.
- The freshness of perishable products primarily concerned with Dairy is a decisive factor a grocery app must not be overlooked.
- Order Fulfillment rate (OFR), i.e., the number of actual products delivered to the number of actual products ordered by the customer. It is regarded as the most critical concept in online grocery shopping, OFR must be above 95% to promise growth sustainability and survival in the market. It must be kept in mind that a person not willing to travel to a supermarket and order physically is the primary customer persona of these businesses. If they aren’t able to deliver the entire range of products ordered, customers won’t hesitate to again prefer direct shopping through supermarkets.
- Delivery on-time is also a primary customer expectation and is coherent with the online shopping experience.
- Finally, yet importantly, the premonition of quality must be preserved as the principle featuring on-demand grocery delivery apps.
How do you earn?
- The commission is a popular revenue model, and it pays you a certain amount for every sale occurring through your online grocery store.
- The subscription model allows you to charge a fixed fee for a timespan that’s usually over a month, three months, or one year. Customers needing a regular delivery of certain products can be charged using the subscription model.
- Premium membership that offers lucrative perks like free delivery, late-night delivery, no surge-charges, and priority delivery.
- Transactional fee grants you to charge a fee for every transaction occurring in your platform.
- Promotions and leasing out ad-spaces, banners to third parties can bring a substantial inflow of revenue.
Whom do I approach developing a Grofers clone app?
Once your entrepreneurial approach is conceded with the comprehension of essentiality of the on-demand grocery delivery industry with the right strategies to make money too, the next logical step must be choosing the right app development team. One such team must possess specific ingrained skills likes
1)Ability to deliver on time
2)Expertise in app cloning
3)Complete Tech support
It is imperative that choosing such a firm is the most crucial factor in your transcendence into the grocery app delivery industry. So choose wisely and best wishes!