8 Best Grocery Delivery Apps in 2024

Summary: 

• Grocery delivery apps like Instacart and Amazon Fresh deliver fresh food and essentials right to your door.
• There are different business models for online grocery deliveries. 
• Many apps offer promotional deals on grocery delivery as well as on grocery pickup.
• Shipt, DoorDash, Talabat, Getir, Big Basket, and FreshDirect are a few other grocery delivery apps that offer a quick and convenient online grocery shopping experience.
  

 

This goes without saying that our everyday purchases are majorly driven by our fundamental need for food and sustenance. And with all of us working so hard to make ends meet these days, shopping groceries the old-fashioned way may be a real drag. For today’s time-poor individuals, in particular, navigating crowded store aisles and carrying groceries is an additional chore. 

Well, not anymore! 

Thanks to apps like Instacart and Amazon Fresh, you can get your groceries delivered right to your door from your smartphone or high-tech Android tablet. For grocery businesses too, these apps are incredibly beneficial in terms of long-term profitability. 

• Zion Market Research predicts that the global online grocery market which was previously valued at $286 billion in 2021 will reach a massive $2,159 billion by 2030 with a healthy CAGR of nearly 26% between 2022 and 2030.
• According to Statista, the number of users of online grocery services is projected to climb to 2.1 billion by 2028, with user penetration reaching 20.1% in 2024. 
• Allied Market Research’s trend analysis report reveals that scheduled deliveries dominated the online grocery market in 2022, capturing nearly two-thirds of revenue. This trend is not likely to reverse soon, the primary reason being that scheduled deliveries allow customers to choose a convenient time slot that fits their busy schedules.

It’s clear as day that not many people prefer leaving the comfort of their house to sift through aisles in search of basic necessities. Given this significant rise in online grocery shopping, the time is right for grocery shop operators to build a robust online presence either through an eCommerce website or a mobile application.   

What Is Online Grocery Delivery?

The concept of online grocery delivery, as the name suggests, involves using mobile applications to order and receive food (and potentially other household products) directly to your doorstep. While not a completely novel service, the rise of mobile technology has significantly increased affordability and accessibility, making grocery delivery a convenient option for many. This eliminates the need for personal assistants to handle these tasks; instead, fulfilling your grocery needs becomes a matter of a few taps on your smartphone.

In essence, grocery delivery apps function in the same way as other on-demand service applications, such as Uber. Notably, Uber itself offers a food delivery service called UberEats. If you were to enter the grocery delivery market in the US, some of your main competitors would include Uber Eats, Instacart, and Postmates. However, with a well-structured team and a well-designed app, there is potential to compete effectively with these established players.

The operational model typically involves two separate applications: one for customers to place orders and another for local delivery personnel. Upon a customer placing an order through their app, a nearby supplier listed on the delivery app receives the order, fulfills it, and delivers the groceries to the customer. While it’s technically possible to combine customer and delivery features into a single app, this approach can lead to a cluttered and unwieldy user experience, hindering overall effectiveness.

Top 5 Grocery Delivery Business Models 

There are several business models that you can consider when launching a hyperlocal mobile grocery delivery service or developing your own food delivery app.

Inventory Model

In this model, the platform acts as a central warehouse that stores and manages all the groceries. Orders are fulfilled either from your own inventory or through a network of external suppliers. The customer receives groceries branded by your service, regardless of the source. Inventory models offer higher profit margins but require significant investment in warehousing, quality control, logistics, and risk of spoilage. Existing supermarkets can leverage this model for online grocery delivery.

Multi-Vendor Marketplace Model

This popular model eliminates the need for inventory management. You act as a mediator, connecting customers with various grocery stores through your website or app. Customers place orders, which are then sent to nearby stores for fulfillment. A delivery person collects the groceries from different stores and delivers them to the customer. This model is scalable and complements on-demand grocery delivery services. Existing e-commerce platforms with multi-vendor functionalities can easily integrate this model.

Retail Sales Model

Similar to the multi-vendor marketplace, this model connects customers with grocery stores. However, unlike the marketplace model where customers choose the store, the platform assigns a store based on the customer’s location. Instacart is a well-known example of this model. Delivery personnel, often called “shoppers,” pick groceries from assigned stores and deliver them to customers. This model allows existing delivery networks to leverage their infrastructure for grocery delivery.

Hyperlocal Model

This model caters to a specific geographic area, focusing on the needs of a local community. Hyperlocal delivery promises faster delivery times, typically within an hour. It allows customers to access products from nearby stores that they might not normally visit. This model revitalizes brick-and-mortar stores and service providers by integrating them into the online delivery ecosystem.

Click and Collect Business Model

This business model caters to customers who prefer to shop for products online but then pick them up in person at a physical store at their convenience. It represents an omnichannel retail strategy, where, for instance, shoppers can order essential groceries online and later retrieve them from a nearby store location. This approach offers a valuable opportunity for retailers, particularly grocery stores, to enter the online grocery market without the complexities associated with traditional door-to-door delivery services.

Click and Collect, also known as BOPIS (Buy Online, Pick-up In-Store), gained a lot of traction and became a prominent form of contactless delivery during the recent pandemic. This model is typically adopted by grocery retailers or wholesalers who have established brick-and-mortar stores. Walmat and Instacart are a few examples of companies implementing Click and Collect business models. 

Revenue Streams

The revenue model depends on your chosen business plan. Common revenue streams include:

• Product Sales: Sell branded merchandise like reusable containers or kitchenware on your platform.
• Commissions: Charge sellers or retailers a commission fee for every sale made through your platform. This commission may vary based on product category and region.
• Subscription Fees: Offer customers subscription plans for recurring deliveries of specific items, such as weekly milk and fruit deliveries.
• Delivery Fees: Charge retailers or partners a delivery fee unless they subscribe to a membership plan.
• Featured Listings: Allow stores to pay for higher visibility on your platform through targeted searches or homepage promotions.
• Loyalty Programs: Implement membership programs with benefits for both customers (e.g., faster delivery, waived delivery fees) and stores (e.g., increased sales, additional promotional opportunities).

How to Select the Optimal Business Model for Your Grocery Delivery Startup

Below are a few factors for choosing the most suitable business model when establishing an online grocery delivery service. By carefully examining each one of them, you can increase your grocery delivery startup’s chances of success and establish a thriving business model.

Stating Market Value Proposition

Define the unique value your company offers to the grocery delivery market. Consider how your approach addresses current customer frustrations or limitations with existing services.

Checking Product Viability

Ensure your service demonstrably solves a problem and provides a positive user experience. Gather feedback from potential customers on a prototype or early version to validate its effectiveness.

Conducting Channel Testing

Test your complete business model, encompassing marketing, delivery, packaging, and customer service aspects, with a focused group of potential customers.

Leveraging Industry Expertise

Seek guidance from a small advisory board with relevant industry knowledge. This group can offer valuable feedback and potentially connect you with production and delivery networks.

Reaching Out to Investors

Even if not seeking immediate investment, communicate your ideas with potential investors. This process refines your approach and provides valuable feedback.

Considering Controlled Rollout

Implement your model in a limited geographical area first. This allows you to efficiently test costs, operational efficiency, and pricing strategies while minimizing risk and maximizing your ability to adapt and improve.

 Gathering Customer Feedback

Offer exceptional service to your initial customer base in exchange for testimonials and word-of-mouth recommendations. Difficulty obtaining positive feedback can signal that your model requires further refinement.

Targeting Established Chains

Once you have established a successful model, seek partnerships with national grocery store chains. Their feedback and endorsement can serve as a powerful validation of your concept and market strategy. This collaboration can also provide valuable insights for large-scale rollout.

8 Best Grocery Delivery Apps in 2024

1. Instacart

Instacart strives to differentiate itself by delivering groceries in as little as 30 minutes. This application collaborates with a broad network of established retailers, both national and local, to ensure nationwide grocery delivery.

While the availability of specific retailers might depend on your location, the potential benefits of rapid delivery times outweigh this factor. Additionally, you have the option to choose in-store pickup to avoid delivery charges. To incentivize you to try the service, they even provide a complimentary first delivery.

Instacart offers the convenience of shopping from Costco locations throughout the United States, and membership is not required to utilize this service. It is important to note, however, that non-members will incur extra delivery fees when placing orders.

Delivery Fee Structure:

• Instacart:
  • Starts at $3.99 for same-day orders over $35.
  • Fees vary for:
    • One-hour deliveries
    • Club store deliveries
    • Deliveries under $35
  • Delivery fee displayed during checkout when selecting delivery window.
• Instacart+:
  • Free delivery on orders over $35 per retailer.

*All orders must be at least $10 to qualify for delivery.

2. Amazon Fresh

Amazon Fresh collaborates with various grocery stores and retailers depending on your location, ensuring a wide selection of products for delivery.

The service currently operates in numerous cities worldwide, including major international locations like Berlin, London, and Tokyo, as well as various cities within the United States.

Notably, Amazon’s acquisition of Whole Foods Market in 2017 makes Amazon Fresh one of the few grocery delivery services with physical stores. These stores, exceeding 500 locations across several U.S. states, provide the option to shop in person or pick up your online order.

Both Amazon Fresh and Whole Foods Market stores conveniently accept SNAP EBT payments, allowing users to shop without requiring a Prime membership. It’s important to be aware that there might be minimal fees associated with in-store purchases using SNAP EBT.

Delivery Fee Structure: 

• Prime membership benefits for orders over $100:
  • Remain free and do not incur a service fee.
• Amazon Fresh delivery orders with 2-hour delivery windows:
  • Service fee structure for Prime members:
    • $6.95 for orders $50-$100.
    • $9.95 for orders under $50.
• Service fees for non-Prime members:
  • Range between $7.95-$13.95 based on basket size and selected delivery window.
• Additional fees:
  • Charged for rush orders.
• Reduced fees for some areas with delivery time flexibility:
  • Up to six-hour delivery windows.
• Grocery pickup at Fresh Stores and Fresh pickup points:
  • Free for all Prime customers.

3. Shipt

Shipt is a service that partners with retail stores across the United States, both national chains and local businesses. Through Shipt, you can order groceries, beverages, and household essentials for delivery to your home. Deliveries can be made in as little as one day. 

While Shipt’s reach is currently limited to the United States, it delivers to a vast network of over 5,000 cities, including Birmingham, San Francisco, and Austin. Additionally, Shipt offers a user-friendly application that allows you to personalize your grocery shopping experience according to your dietary needs. By activating filters within the app, you can prioritize specific food categories, ensuring that you see only the products that align with your preferences.

Delivery Fee Structure: 

• Membership options:
  • Monthly or yearly memberships offer unlimited deliveries.
  • Free delivery for all orders over $35.
• Linking memberships:
  • Existing Target members can link Shipt and Target memberships.
  • Use the same email and phone number associated with your Target account on Shipt.
• Free trial:
  • Sign up for a 14-day free trial.
  • Account required to start.
  • At the end of the trial period, account converts to chosen membership plan.

Note:

• Shipt membership fees and one-time delivery fees vary by market.
• Deliveries under $35 with Shipt membership incur a $7 fee.
• Orders with alcohol may incur a $7 alcohol fee.

4. DoorDash

DoorDash facilitates grocery deliveries across a vast geographical region encompassing North America (Canada and the United States) and Australia. Their extensive reach caters to a wide range of needs: restaurant meals, groceries, and even everyday essentials like medicine, snacks, and beverages from nearby convenience stores — so you can get what you need when you need it.

To enhance your experience, DoorDash offers a subscription service known as DoorPass. This membership grants users access to various benefits, including complimentary delivery, reduced prices, reward points, and frequent promotional offers. While DoorPass entails a monthly fee of $9.99, they provide a complimentary trial for the initial month, allowing you to determine if the subscription aligns with your requirements.

Delivery Fee Structure: 

• Delivery fee range:
  • Can vary from $5 to $8 per order.
• Service fee:
  • Dependent on the order subtotal.
  • Compensates for various costs:
    • Marketing
    • Payment processing
    • Technology development
    • Etc.
• DashPass subscription service:
  • Cost: $9.99 per month.
  • Potential savings: $4-5 on each order.
  • Benefits:
    • No delivery charges for orders above $12.
    • Reduced service charges.
  • Convenience for frequent DoorDash users.
  • Provides additional revenue stream for DoorDash.

5. Talabat 

Since its establishment in 2004, Talabat has actively pursued opportunities within the online food ordering market across its target audience, because of which the company has experienced significant growth and expansion throughout the years.

Like other reputable food & grocery delivery applications, Talabat provides detailed information about grocery stores and outlets. In addition, Talabat allows its users to personalize their orders according to their preferences. Customers can find the most advantageous deals and tailor their selections to their specific needs.

Talabat also offers a variety of payment methods to cater to user convenience. Customers can choose their preferred option, including debit cards, credit cards, or cash on delivery (COD).

Talabat is currently operational in several Middle Eastern countries, including Kuwait, Saudi Arabia, the United Arab Emirates, Oman, Bahrain, Jordan, and Qatar.

Delivery Fee Structure:

• Delivery Fee:
  • Lowered and varies based on location.
  • Determined by distance from the vendor.
  • Closer proximity results in lower delivery fees.
• Service Fee:
  • Percentage of basket total before discounts.
  • Supports maintaining a quality user experience on the app.

6. Getir

Following its initial success in its home country, this Istanbul-based company has now expanded its operations to various countries across the globe, including France, Germany, the United Kingdom, and most recently, the United States. 

Further demonstrating its growth trajectory, Getir recently acquired BLOK, a Spanish online grocery startup based in Barcelona. This acquisition suggests Getir’s potential expansion into Spain, Portugal, and Italy, which are BLOK’s current areas of operation. 

Through the Getir application, users have access to a vast selection of products: fresh produce, household staples, health and hygiene items, and even pet food. Notably, Getir prioritizes prompt delivery, often fulfilling orders within ten minutes. Additionally, Getir offers delivery around the clock, thus ensuring flexibility to accommodate any schedule. 

Unlike Instacart, which gathers groceries from various stores and charges a delivery fee, Getir Getir owns its own inventory and strategically positions hidden warehouses, known as dark stores, stocked with these items. Upon receiving an order, Getir’s employees, referred to as pickers, efficiently navigate the aisles to assemble the order. These orders are then promptly passed to riders utilizing electric bikes for swift delivery. This unique model enables Getir to achieve impressively fast delivery times, typically within 10 minutes, and caters to customers throughout the day, from early morning until midnight.

Delivery Fee Structure: 

• £1.99 delivery fee for orders totaling £10 or more
• A small city tax for carrier bags that supports various initiatives across Boston, Chicago & New York City

7. Big Basket 

Certainly there’s no gainsaying that Big Basket is a leader among all grocery delivery apps in India. Its impressive 99.3% on-time delivery rate and a near-perfect 99.5% order fulfillment rate translates to a reliable and efficient service that gets you the groceries you need within minutes. 

Freshness is another key concern addressed by Big Basket. Their commitment to quality ensures farm-fresh produce arrives directly from the source, maintaining optimal freshness for your table.

That said, perhaps the most compelling aspect of Big Basket is its commitment to customer satisfaction. Their no-questions-asked return policy ensures a risk-free shopping experience. If you’re not happy with a product, simply request a return without any hassle. Furthermore, a 10% refund policy guarantees compensation for any delays in receiving your order.

Big Basket further prioritizes customer convenience further by providing a variety of secure payment options. Choose the method that best suits you, whether it’s cash on delivery, e-wallets, or online banking. Additionally, the app caters to a broad audience by being available in seven different languages and serving major cities across India.

Delivery Fee Structure: 

• For orders below INR 600:
  • Delivery charge: INR 50.
• For orders between INR 600 and INR 1000:
  • Delivery charge: INR 10 (INR 15 in Mumbai).

8. FreshDirect

FreshDirect has established itself as a popular grocery delivery app of choice across the East Coast, catering to residents in major cities like New York, New Jersey, Delaware, Pennsylvania, Connecticut, and beyond. 

FreshDirect prioritizes the delivery of fresh, high-quality products. They achieve this by partnering directly with local farmers, dairies, and fisheries. This ensures a diverse and seasonal selection, with offerings that adapt to the current harvest and catch.

FreshDirect replicates the functionality of a traditional online shopping platform in that customers can browse a comprehensive selection of items and add them to their virtual cart in desired quantities. Upon completion, you can select a convenient two-hour delivery window and prepay for your order. FreshDirect offers exceptional flexibility, as it allows you to schedule deliveries for the same day (express service), the following day, or even a week in advance. Deliveries arrive in refrigerated trucks, and the delivery personnel bring them directly to your kitchen counter for maximum convenience.

Moreover, FreshDirect caters to a variety of shopping styles. For those seeking inspiration, browse curated sections like “Fresh Deals” and “Top-Rated Produce”. You can also leverage available coupons to maximize your savings. Additionally, the platform allows you to search for locally-sourced ingredients, shop organic products specifically, or order essential household items.

Delivery Fee Structure: 

• Express Delivery:
  • Available in Manhattan, Brooklyn, and parts of Queens.
  • Eligible zip codes display “Express Delivery” toggle on FreshDirect website.
  • Limited product selection.
  • Groceries delivered within two hours.
  • Delivery fee: $5.99.
• DeliveryPass option:
  • Ideal for frequent FreshDirect users or those with specific home availability.
  • Three plans available:
    • Any day delivery:
      • $79 for six months
      • $129 for a year
    • Tuesday through Thursday delivery:
      • $39 for six months
  • Benefits include:
    • Free delivery
    • Exclusive special offers
    • Reserved time slots