How To Make Grocery Delivery App Like Shipt

The online grocery delivery industry has been growing at a rapid pace in recent years. Owing to technological advancements and the ubiquity of the internet, consumers are now opting for the convenience of having their groceries delivered right to their doorstep. In accordance with a Statista report, the global online grocery market is on track to hit a staggering $1.2 trillion by the year 2025. This unprecedented growth has ignited a fierce battle for dominance in the on-demand grocery industry, with heavyweights like Shipt, Instacart, and Amazon Fresh relentlessly competing for market supremacy. In the following blog, we embark on a comprehensive journey to dissect the competitive landscape of the on-demand grocery sector and, more importantly, offer a detailed guide on how to build your very own grocery delivery app akin to Shipt.

Shipt: An Overview

Shipt stands as a prominent player in the United States online grocery delivery arena, established in 2014 with the core objective of revolutionizing the shopping experience. It provides a streamlined avenue for customers to procure groceries from nearby retail giants such as Target, Fred Meyer, Meijer, and more, all while enjoying the convenience of home delivery. The crux of Shipt’s operation revolves around an extensive network of local stores, which serve as the primary source for a diverse array of offerings, spanning from fresh produce to household staples and pantry essentials.

A. Shipt For Customer

For customers, Shipt is a time-saving marvel that eliminates the hassle of physically visiting stores. Here’s how it works:

  • Users register on Shipt’s platform or opt for the Shipt user app.
  • Once registered, users gain access to a range of local stores available on Shipt, enabling them to craft personalized shopping lists.
  • With their shopping list in tow, customers hand over the reins to Shipt’s gig workers, known as Shipt Shoppers, who execute real-time coordination while procuring the items.
  • Customers enjoy the flexibility to request product substitutions, allowing for a seamless shopping experience.
  • Throughout the process, customers receive timely updates and notifications on the status of their orders.
  • Shipt ensures timely doorstep delivery, aligning with the schedule set by customers.
  • Customers who seek extra savings can explore membership plans offered by Shipt. Options include a monthly plan at approximately $14 or an annual plan at $99 ($8.25 per month).

B. Shipt For Shoppers And Store

Shipt’s impact extends beyond customer convenience:

  • Shipt Shoppers, the gig workers behind the scenes, revel in flexible employment opportunities that allow them to augment their income. They navigate stores, make purchases, and execute the final delivery with a seamless payment system in place.
  • Stores leverage Shipt’s online platform to boost sales and reach a wider customer base, a win-win scenario that underscores the efficiency of the online model. Here is the list of stores working with Shipt as a partner:
HEBSafewayMeijer
LIDLTargetWinn Dixie
CostcoLowes FoodPiggly Wiggly
ABC Fine WineSpiritsCVS
Office DepotPetcoPublix
7 ElevenWalgreensBest Buy
Bed Bath & BeyondBevMo!Buy Buy Baby
Fresh ThymeKrogerSur La Table
Smart & FinalTotal Wine & Moreand more..

C. Shipt Revenue Model

Is Shipt free to use? The answer varies based on your perspective:

  • Downloading the Shipt app from your preferred app store or accessing the website via any browser comes at no cost.
  • However, making an order as a customer necessitates a valid membership, with two options available: a monthly plan at around $14 or an annual subscription at $99, equating to a budget-friendly $8.25 per month.
  • Delivery charges are contingent on order value. Orders exceeding $35 enjoy free delivery, whereas a modest $7 delivery fee applies to orders below $35.
  • Notably, Shipt’s pricing structure differs slightly from in-store prices to cover the convenience it offers, and the company is transparent about these variations.
  • Customers who opt not to subscribe can still utilize Shipt but must pay a $10 delivery fee for each order.
  • Shipt Shoppers, while on the job, gain complimentary access to a membership plan, replete with additional perks.
  • Shipt Shoppers receive commissions for each delivery, starting at a minimum of $5 per order and potentially increasing based on factors like order size and delivery complexity.
  • Shipt incentivizes users by offering a $50 reward every time they successfully refer the app to others, adding another dimension to the platform’s user engagement.
Shipt

How Does Shipt Work?

Shipt, a grocery delivery service, seamlessly connects customers with shoppers who pick and deliver their desired products from local stores. To provide a comprehensive understanding of how Shipt operates, let’s break down the process step by step.

Step:1. Sign Up and Account Setup 

Begin by downloading the Shipt mobile app or accessing their website. Create your account by providing essential information like your name, email address, and a secure password. This registration is entirely free, and it forms the foundation for your Shipt experience.

Step:2. Choose Location and Preferred Store 

After setting up your account, you’ll need to input your delivery location. You can either do this manually or utilize GPS for accuracy. Your location plays a crucial role in ensuring timely deliveries. Next, select your preferred store from a list of options. If you have a store membership, be sure to specify this information.

Step:3. Build Your Shopping Cart 

With your preferred store selected, you can begin browsing and adding items to your virtual shopping cart. When you find a product you want, simply click “add to cart.” You can also set substitution preferences in case any of your chosen items are unavailable. Choose to have the shopper contact you, select an alternative, or opt for no substitution.

Step:4. Membership Plans 

Shipt offers membership plans for potential savings. You can opt for a monthly subscription at $14 per month or an annual plan at $99 per year, which can be a cost-effective choice for frequent users.

Step:5. Select Delivery Time 

Once your cart is filled, proceed to check out. Confirm your delivery address, add your contact number, and select a payment method. The available delivery time slots will depend on your location and proximity to the chosen store.

Step:6. Order Fulfillment 

After completing the above steps, a Shipt shopper will take over. Throughout the shopping process, you will receive notifications to stay updated. You also have the flexibility to communicate with your shopper and make adjustments, such as changing your delivery time slot if needed.

Shipt employs innovative technology to ensure a smooth grocery delivery process. This combination of a user-friendly app, real-time notifications, and personalized shopper interactions sets Shipt apart in the world of on-demand grocery delivery, making it a convenient choice for busy consumers seeking quality service and timely deliveries.

Having gained insight into Shipt’s operations, it’s crucial to recognize the compelling reasons for venturing into the grocery industry at this opportune moment. Furthermore, understanding the necessity of a dedicated mobile application for businesses like yours is pivotal for achieving resounding success.

Why Does A Grocery Business Need A Dedicated App?

A dedicated grocery app can work wonders for your business. With the surge in online grocery shopping, people want easy and hassle-free ways to buy groceries from the comfort of their homes. 

A grocery delivery app can give your customers a special experience by offering personalized suggestions based on their past orders and searches. It’s like having their own corner store at their fingertips, making them more loyal to your business. Plus, it helps you reach a wider audience, making your customers happier by giving them easy access to your products.

The real magic happens behind the scenes. Developing a grocery app helps you save money and boost your profits. By looking at what customers are buying, you can figure out which products are the most popular and keep them in stock. This smart planning and customer insight help you make your business more efficient and profitable in the long run.

In a nutshell, a grocery delivery app is your ticket to success in the on-demand grocery industry. It offers convenience, personalization, and cost savings. So, take the plunge and watch your grocery business thrive in the digital age.

Moreover, the online delivery services sector is experiencing a significant surge in demand. It is projected that this market will witness substantial growth, reaching an estimated increase of USD 652.45 billion, with a Compound Annual Growth Rate (CAGR) of 19.43% expected from 2022 to 2027. 

market size outlook grocery delivery market

According to Grandviewresearch , in 2021, the worldwide e-commerce grocery sector reached a substantial valuation of USD 285.70 billion. Projections indicate an impressive growth trajectory, with an estimated compound annual growth rate (CAGR) of 25.3% forecasted from 2022 through 2030.

europe-online-grocery-market
Credit – Grandviewresearch

Who Should Build A Grocery Delivery App?

Determining the right fit for a grocery delivery app development model is essential. Let’s explore the ideal candidates for investing in such apps:

1. Grocery Store Owners

If you own a local grocery business, creating a dedicated grocery delivery app is a strategic move. Local businesses are often trusted more than large corporations, and an app allows you to expand your reach beyond your immediate neighborhood, offering a substantial return on investment.

2. Grocery Chain Owners

For those with multiple grocery stores, apps like Instacart and Shipt are invaluable. These platforms can elevate your business by increasing revenue and broadening your customer base. Their simplicity makes them an attractive choice for grocery chain owners.

3. Businesses (Even Without Grocery Stores)

Even without a grocery store, you can enter the grocery delivery app market. Consider models like Uber and Instacart, which thrive as online marketplaces. By building an online grocery delivery marketplace, you can tap into a wealth of opportunities. As an aggregator, you can generate revenue from both businesses and users, following a successful approach akin to Shipt’s. 

Must-have Features Of A Shipt-like Grocery Delivery App

Here’s a detailed list of must-have features for a Shipt-like grocery delivery app:

1. User-Friendly Interface:

  • Intuitive Design: A clean and intuitive interface ensures users can navigate the app effortlessly.
  • User Onboarding: Simple onboarding process with clear instructions to help users get started quickly.

2. User Account Management:

  • User Profiles: Allow users to create profiles with personal information, delivery addresses, and preferred payment methods.
  • Order History: Keep track of past orders for easy reordering and reference.
  • Notifications: Push notifications for order updates, delivery confirmations, and promotions.

3. Product Catalog:

  • Comprehensive Database: A vast selection of products categorized into sections for easy browsing.
  • Product Details: High-quality images, detailed descriptions, prices, and nutritional information.
  • Search and Filters: Robust search functionality and filters to help users find specific items quickly.

4. Shopping Cart:

  • Editable Cart: Users can add, remove, or modify items in their cart before placing the order.
  • Real-Time Price Update: Instant calculation of the total cost as users add or remove items.

5. Payment Gateway Integration:

  • Secure Payments: Integration with trusted payment gateways to ensure secure transactions.
  • Multiple Payment Options: Support for various payment methods, including credit/debit cards, digital wallets, and cash on delivery.

6. Delivery Scheduling:

  • Flexible Delivery Time: Allow users to choose delivery slots based on their convenience.
  • Same-Day Delivery: Provide an option for same-day delivery to cater to urgent needs.

7. Real-Time Tracking:

  • Live Order Tracking: Real-time tracking of the delivery, allowing users to know the exact location of their order and the estimated delivery time.
  • Delivery Person Details: Display the name and photo of the assigned delivery person for security and easy identification.

8. Customer Support:

  • In-App Chat Support: A built-in chat system for instant communication between users and customer support.
  • FAQ Section: A comprehensive FAQ section to address common queries and concerns.

9. Feedback and Ratings:

  • Rating System: Allow users to rate products and delivery service to maintain quality standards.
  • Feedback Forms: Periodically seek feedback through surveys to enhance user experience.

10. Promotions and Discounts:

  • Promo Codes: Enable users to apply promo codes for discounts and special offers.
  • Loyalty Programs: Reward loyal customers with points for every purchase, which can be redeemed for discounts or free products.

11. Security and Privacy:

  • Data Encryption: Encrypt user data and transactions to ensure privacy and security.
  • GDPR Compliance: Adhere to data protection regulations and allow users to control their data.

12. Partnership with Local Stores:

  • Local Store Integration: Partner with local grocery stores to expand the range of available products.
  • Vendor Management: Efficiently manage relationships with partner stores, ensuring quality and timely deliveries.

13. Multi-Platform Support:

  • Cross-Platform Compatibility: Develop the app for both iOS and Android platforms to reach a wider audience.
  • Responsive Design: Ensure the app functions seamlessly on various devices, including smartphones and tablets.

14. Geo-Fencing and Address Verification:

  • Geo-Fencing: Use geo-fencing technology to verify user locations and ensure accurate deliveries.
  • Address Verification: Implement address validation tools to minimize delivery errors.

15. Emerging Technologies:

  • Voice Search: Integrate voice search capabilities for hands-free navigation and product search.
  • AR Shopping: Implement augmented reality features, allowing users to visualize products in their homes before purchasing.

How To Build An App Like Shipt?

Building a grocery delivery app similar to Shipt requires a systematic approach and a clear understanding of the development process. Here are the essential steps to create a successful grocery delivery app:

1. Conceptualization

Start by conceptualizing your app. Identify the unique value proposition or features that will set your app apart from competitors. Consider multiple variations of your idea to have contingency plans.

2. Market Research

Conduct thorough market research to understand your competitors, their strategies, target audience, market behavior, and emerging trends. This research will guide your app’s development and launch.

3. Choose a Business Model

Decide on a suitable business model for your grocery delivery app. Options include the inventory model, multi-vendor marketplace model, shopping model, hyper-local model, or online-selling model.

4. Legal Compliances and Licenses

Handle the necessary legal requirements and licenses. This may include business registration, compliance with local regulations, and obtaining the required licenses for your specific location.

5. Build a Delivery Network

Establish a robust and efficient delivery network. Consider the logistics, route optimization, and ensuring timely deliveries. This is a critical component of your business.

6. Sign Up Partners

Depending on your chosen business model, you may need to onboard grocery stores, suppliers, or partner businesses. Sign agreements and formalize partnerships as needed.

7. Hire Mobile App Developers

Choose a reliable team to develop your app. Options include hiring freelancers, outsourcing to app development companies, assembling an in-house team, or using IT staff augmentation for additional support. Prioritize candidates with a strong portfolio, relevant experience, and positive client testimonials.

8. Idea Validation

Before proceeding with development, validate your app idea to ensure its feasibility. Consider running a proof of concept (PoC) to test your concept in a real-world scenario.

9. Set Development Parameters

Define the app’s parameters, including the choice between Android and iOS development, selecting the appropriate tech stack, and choosing a development methodology (e.g., Agile or TDD).

10. UI/UX Design

In this pivotal step, the focus shifts to designing a user interface (UI) and user experience (UX) that resonate with your target audience. Front-end development comes to life as visual elements and interactive features take shape. It’s here that you lay the foundation for an intuitive, visually appealing, and user-friendly app. Every aspect, from color schemes and layout to navigation and touchpoints, is meticulously designed to ensure a seamless and enjoyable user journey, making your app a pleasure to interact with.

11. App Development

Develop the back-end of the app, where the source code is written. This is a critical phase where the app’s functionality is built, including features for users, shoppers, and administrative control.

12. Testing and Launch

After development, send the app for rigorous testing by a quality assurance (QA) team. Identify and rectify any bugs or errors to ensure a seamless user experience.

Moving on from the testing phase, prepare for the app launch, which may involve different processes for Android and iOS platforms. After the launch, ongoing maintenance and updates are essential to ensure the app’s performance and user satisfaction.

These steps provide a roadmap for creating a grocery delivery app similar to Shipt. It’s essential to focus on user experience, efficiency, and innovation to stand out in this competitive market.

Tech Stack Required For The Development Of An App Like Shipt

AreaTechnology
Mobile App DevelopmentiOS: Swift or Objective-C
Android: Java or Kotlin
Back-End DevelopmentProgramming Languages: Python, Ruby on Rails, Node.js, or Java
Web Framework: Django, Ruby on Rails, Express.js, or Spring Boot
DatabaseRelational Database Management System (RDBMS): PostgreSQL, MySQL, or Oracle
NoSQL Database: MongoDB, Cassandra, or Couchbase
Cloud ServicesServer Hosting: Amazon Web Services (AWS), Google Cloud Platform (GCP), or Microsoft Azure
Storage: Amazon S3 or Google Cloud Storage
Content Delivery Network (CDN): Amazon CloudFront or Akamai
Real-Time MessagingWebSocket for real-time communication between users and shoppers
Payment Gateway IntegrationStripe, PayPal, or Braintree for secure payment processing
Geolocation ServicesGoogle Maps API for location tracking, route optimization, and address validation
Push NotificationsFirebase Cloud Messaging (FCM) for Android or Apple Push Notification Service (APNs) for iOS
AnalyticsGoogle Analytics or Mixpanel for gathering insights, tracking user behavior, and measuring app performance
Version ControlGit for collaborative development and version management
DevOps ToolsDocker and Kubernetes for containerization and orchestration of app components
Continuous Integration/Continuous Deployment (CI/CD) Tools: Jenkins, Travis CI, or CircleCI for automating testing and deployment
SecurityImplement encryption protocols (HTTPS, SSL/TLS) for data security
Regular security audits and penetration testing to identify vulnerabilities
Shipt business model

Top 10 Popular Grocery Delivery Apps Like Shipt

Here is the list of top 10 grocery apps like Shipt in 2023:

1. Boxed

Boxed represents an online grocery delivery service with a primary focus on bulk purchases. This strategic approach enables them to provide customers with more budget-friendly options and additional conveniences. Through bulk buying, customers can unlock savings of up to 10% on their everyday essentials. Boxed also extends an enhanced subscription service for even more discounts.

2. GoPuff

GoPuff has made a name for itself as a digital convenience retailer renowned for its swift delivery of essential goods. In 2023, GoPuff notably sponsored the Wireless 2023 festival, a vibrant event that unfolded from July 7th to 9th in Finsbury Park, North London. It’s important to highlight that in May 2023, GoPuff faced the revocation of its alcohol delivery license in Massachusetts following an incident where alcohol was delivered to 19 underage individuals near Boston College in 2021.

3. FreshDirect

FreshDirect, recognized for its commitment to fresh, premium-quality groceries, embarked on a fresh journey in 2023 with the launch of a novel brand campaign titled “Food That Delivers You.” Operating within the New York City metro area and under the umbrella of parent company Ahold Delhaize USA, FreshDirect extends its offerings to encompass an array of prepared meals, meal kits, breakfast selections, and side dishes. This versatility positions it as an attractive option for those seeking effortless, prep-free dining experiences.

4. Peapod

Peapod focuses on bulk shopping to offer customers competitive prices, convenient delivery options, and extra savings. It’s a great choice for those who prefer buying in larger quantities. This strategic approach enables them to extend cost-effective pricing along with supplementary conveniences. By embracing the bulk shopping paradigm, patrons can realize savings of up to 10% on their everyday essential items. Furthermore, Peapod extends an upgraded subscription program aimed at providing additional discounts to its clientele. Notably, it has since disassociated from its parent company, Giant Food Stores, yet maintains partnerships with over 400 Stop & Shop outlets to facilitate efficient grocery deliveries. The spectrum of Peapod’s offerings transcends groceries and encompasses office supplies, household essentials, baby and childcare products, and even an array of beauty items.

5. Imperfect Foods

Imperfect Foods stands as a grocery delivery service with a unique proposition, offering items that may not align with the stringent cosmetic standards upheld by typical grocery retailers. This distinctive approach contributes to the reduction of food waste. In 2023, Imperfect Foods implemented a revised pricing model, emphasizing greater flexibility. The company sources its produce locally whenever feasible, with over 75% originating from family farms and cooperatives. The pricing spectrum varies, but, on average, offers a more budget-friendly alternative compared to traditional supermarkets. Each order remains customizable, although the option to entrust Imperfect Foods with the selection process is also available. It’s important to note that certain items may incur higher costs, and sporadic stock shortages may impact your meal planning.

6. Dumpling

Dumpling stands as a grocery delivery platform that seamlessly connects users with personal shoppers who are equipped to shop at any local store in their vicinity. Established in 2017, Dumpling has expanded its presence to encompass more than 2,000 shoppers across all 50 states. Users benefit from the ability to meticulously curate their shopping lists and append custom notes to individual items right within the app. This distinctive approach creates a shopping experience akin to having a dedicated personal shopper at your service.

7. Walmart Grocery

Walmart Grocery emerged as the online grocery shopping service of Walmart, recognized as America’s largest grocer. It offers both convenient pickup and delivery services. In a bid to counteract inflation, Walmart took the proactive step of reducing grocery prices in anticipation of the Thanksgiving holiday season in 2023. Nevertheless, the service faced a minor controversy when a customer uncovered that each item on their shopping list arrived in separate plastic bags.

8. Hungryroot

Hungryroot operates as an online grocery shopping and delivery service that not only provides easy-to-assemble meals but also grants access to an extensive repository of over 3,000 recipes. Alongside meal orders, it offers a comprehensive grocery selection. Distinguished by a resolute commitment to sustainability and environmental well-being, Hungryroot places a premium on curating nutritious, health-conscious meals that are both quick and hassle-free to prepare. With a database housing over 3,000 recipes, Hungryroot tailors weekly meal plans based on your personalized preferences, ensuring that you have access to recipes, meal solutions, and grocery options for the entire week.

9. Amazon Fresh

Amazon Fresh stands as an e-commerce grocery delivery solution provided by the retail giant Amazon. This service extends a selection of fresh items, including produce, meat, and dairy, along with a comprehensive range of grocery essentials. It is accessible as a part of an Amazon Prime subscription, boasting swift two-hour delivery for the majority of orders. In the year 2023, Amazon Fresh encountered challenges in enticing customers to make in-store grocery purchases, subsequently resulting in a staff reduction. However, the company is placing its bets on a novel approach and revamped store designs to overcome these challenges. Amazon Fresh unveiled plans to introduce hundreds of new renowned brands to two of its suburban Chicago-based stores, with an additional commitment to providing online grocery delivery for non-Amazon Prime members. This strategic maneuver aims to broaden its consumer base.

10. Instacart

Instacart, a highly popular online grocery shopping and delivery service, offers a multitude of unique features. Customers can access a diverse range of stores through Instacart, which collaborates with numerous grocery store chains and local retailers, providing same-day delivery across all 50 US states and Canada’s 10 provinces. Whether through the user-friendly mobile app or the dedicated website, Instacart ensures convenience for all. In 2023, they introduced innovative shopper benefits, such as “queued batches,” enabling shoppers to accept more orders before completing the current ones, and “multi-store add-on orders,” which lets shoppers take on multiple customer orders from nearby retailers. The Scan & Pay feature, also introduced in 2023, streamlines the shopping process. Shoppers can anticipate competitive earnings averaging between $15 and $20 per hour, paid weekly via direct deposit. Furthermore, Instacart accommodates shoppers without personal vehicles.

Conclusion

Creating a grocery delivery app offers significant opportunities in the thriving on-demand grocery industry. To achieve success, careful planning, the right technology, and evaluating factors such as app complexity and team expertise are crucial. While cost management is essential, it should not compromise the goal of developing a top-quality, dependable, and user-friendly application.

How Can Idea Usher Help?

Idea Usher, an established app development company, is well-positioned to contribute to the success of grocery delivery app projects like Shipt. With extensive experience in web and mobile app development, we offer expert guidance in crafting a robust, feature-rich grocery delivery app tailored to the industry’s unique needs. We focus on selecting the most suitable technology stack, ensuring scalability and efficiency, and integrating essential features like real-time tracking and multiple payment options. Our expertise guarantees a top-tier grocery delivery app that not only meets business objectives but also provides an outstanding user experience. Contact us today to kickstart the development of your grocery delivery app with us.

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FAQ

1. What are the key features of a Shipt-like grocery delivery app?

A grocery delivery app, similar to Shipt, should incorporate essential features such as real-time order tracking, a diverse range of payment options to ensure convenience, personalized discounts to enhance the shopping experience, and access to a wide array of partner stores, providing users with a comprehensive selection of products to choose from.

2. How much does it cost to develop a grocery delivery app like Shipt?

The cost associated with developing a grocery delivery app resembling Shipt can vary significantly. Factors influencing the cost include the app’s complexity, the scope of features you intend to integrate, and the pricing structure of the development team you engage. It’s essential to establish a budget based on your specific project requirements and seek cost estimates from reputable developers.

3. How long does it take to develop a grocery delivery app like Shipt?

The development timeline for a grocery delivery app similar to Shipt can span from a few weeks to several months. The duration hinges on factors such as the app’s complexity, the expertise of your development team, and any unique features you wish to include. A comprehensive project plan and effective project management can help streamline the development process.

4. What technology stack is best for developing a grocery delivery app like Shipt?

The ideal technology stack for creating a grocery delivery app akin to Shipt encompasses a mix of technologies. For Android app development, technologies like Java or Kotlin are suitable, while Swift or Objective-C are apt for iOS app development. Backend development can be effectively managed using technologies like Node.js or Python. Careful consideration of your project’s specific needs and the expertise of your development team is essential in selecting the best technology stack.

5. How can I ensure the success of my grocery delivery app?

Guaranteeing the success of your grocery delivery app requires meticulous planning, careful selection of the appropriate technology stack, evaluation of factors like app complexity, and ensuring your development team possesses the necessary expertise. The primary focus should be on creating a high-quality, dependable, and user-friendly application that caters to the needs and preferences of your target audience. Effective project management and regular testing can contribute to the app’s success in the competitive on-demand grocery market.

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