Business Model of On-Demand Grocery Delivery Apps Like InstaCart

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Past two decades have not only witnessed a
considerable change in customer shopping behavior
but also accounted for exponential growth in the
US grocery market. In 2019, online grocery sales
grew 22, however, it propelled even more by high
demand from nationwide COVID-19 lockdown and
since then there is no look back and figures are
only swelling. This means on demand grocery
delivery app development company in New York
USA are already been contacted more and more by
businesses or startups who were still following
traditional methods of delivery. The launch of
giant Instacart in 2012 grew rapidly and until
now reached more than 80 percent of US
households. Another, the acquisition of Whole
Foods Market in 2017 by Amazon serves consumers
with credibility in fresh groceries. Ever thought
about what makes some retailers excel while
others fail? The trouble with aspiring online
grocery shopping before brands is their business
model. What makes Instacarts business model an
instant success?
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Market leaders in Grocery such as Instacart
implement a sharing economy based business model.
To connect customers with personal shoppers,
Instacart has enabled an easy set up for
customers, suppliers, retailers to provide a win
to win situation for everybody. Instacart
business model rotates around the three main
client groups. Instacart is offering a value
proposition for all three of these customer
segments. Customers Individuals who are placing
grocery orders. This is the best way to shop for
groceries. Easy, convenient and you get the
delivery within an hour. The Grocery
shoppers The shoppers are individuals receiving
orders and then going to these stores and
purchasing those items on the customers behalf.
For shoppers, it is an additional way to earn
part-time revenue and work within a flexible
working schedule. The Retail partners The retail
stores are partners who are tieing up with
instacart and receiving the revenue from the
purchase. For stores apparently, theyre
increasing their loyalty from customers outside
of instacart and also offering an excellent
online e-commerce channel. Instacart customer
segments explained
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• Users
• An app which facilitates them to order grocery by
  selecting the end number of stores
• Convenience to order from the app, desktop, or
  laptop using a web-based interface.
• Users pay online for their order without
  juxtaposing any threat or security
• Option to shop from leading stores in the area
• Order scheduling- for a specific day and time as
  per the need.
• Shoppers
• Shoppers receive orders on their smartphones.
• Shoppers are stationed near the stores to save
  time.
• Picking up ordered items manually and delivering
  it to the customer.
• Apart from the per hour pay, shoppers often get a
  tip from customers.
• Stores
• Tie-ups and associations with major superstores
  across cities.
• Increase revenue through online sales via
  Instacart.

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Business Model for starting an Online Grocery
Shopping Marketplace Keeping in mind the niche
and challenges presented, both admin and seller
has to provide maximum satisfaction to its
customers. Below are the primary business models
which ought to be followed by an online grocery
shopping marketplace to render the best
experience to its customers. Seller
Panel Aggregator Model In this model, the brand
partners with existing grocery stores or
supermarkets, collect orders ultimately
delivering them to the customers. This model is
largely preferred by entrepreneurs reasoning it
reduces the cost of warehousing. Store-pick up
model Consumers order groceries through the
website, pick up an order from the store, and
later collect the same as per their preferred
time. Here, there is a scope before retailers to
enter into the online grocery space, click and
collect model this is less intimidating than
door-to-door service.
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• Pure-Play and Warehouse-Pick Model
• This model is typically followed by businesses
  that neither have brick and mortar stores nor
  have an aggregator model. The grocery seller buys
  directly from the manufacturer or producer and
  stores it in a warehouse to further distribute.
• Challenges faced by some e-grocery business model
  are
• Developing an on-demand online grocery ordering
  service that immediately gratifies customers
  needs and ultimately saves their time.
• Working towards overcoming negative perception
  associated with online grocery shopping for eg,
  difficulty selecting meat products without seeing
  them in person,
• Assuring that delivery arrives at them at their
  selected convenient time, shortest window and
  they need not be mandatorily at home when it
  arrives.
• Setting product pricing that is similar or easily
  comparable to in-store shopping.Providing free
  home delivery service to customers at a
  reasonable cost without incurring the risk of
  losing money on the order.

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Until relatively recently, grocery options
rendered to shoppers were limited as per the
availability of brick and mortar stores. Whereas
now, tens of millions of Americans can shop and
gratify their on-demand groceries in less than an
hour with an option of free home delivery. Launch
your online grocery marketplace with Zimble Code
on-demand delivery app experts and we help build
an aggregated marketplace by bringing all your
grocery stores under a single dashboard. Whether
you are planning to build an aggregated
marketplace, supermarket chain, or standalone
store, we insist you go digital and expand your
offline business online. Also Read  8 Best Ideas
to Protect your Grocery Business in Coronavirus
Epidemic Article Resource - https//zimblecode.co
m/business-model-of-on-demand-grocery-delivery-app
s-like-instacart/