Grocery Delivery App Development Cost Estimates in 2022
Grocery Delivery App Development Cost Estimates in 2022
Anurag Jain
Last Updated on July 13, 2022
If there is a need, there’s an app for it!
Mobile apps have made our day-to-day life more convenient, from booking a cab to ordering dinner has become a matter of pressing a few keys on the smartphone. One such domain where mobile apps are gaining a lot of traction is on-demand grocery delivery. These apps reduce the pain of traveling for purchase, getting stuck in traffic, looking for parking space, dealing with crowded shops, standing in long check-out lines, an exhaustive process, simple!
Furthermore, if all products are not available, it entails another visit to the store. As the name suggests, top on-demand grocery apps are about what you want, when you want. Just open the app, select the products you want to buy, make a payment, and voila it is delivered at your door space, as per your convenience. This has contributed to the extensive growth of this market. According to reports, the number of US grocery delivery app users has grown from 12 Million in 2017 to a whopping 30.4 Million in 2022.
While purchasing delivery through mobile looks as natural as a 1-2-3 process, there’s much work that goes in the background to ensure that process runs seamlessly. From ensuring that the right products are selected based on real-time availability, payment gets credited to the correct accounts, and the exact location is shared with the delivery person. Building and maintaining an on-demand grocery delivery app is an expensive endeavor due to the increased level of complexity.
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An on-demand grocery delivery app is divided into four sections:
- Customer App
- Admin Panel
- Delivery Agent App
- Vendor Manager App
Process Flow
The order cycle starts when the customer places an order on the app. The order and payment details are shared on the admin panel, where the product details are conveyed to the requisite vendor. At the same time, a delivery agent is assigned, and the location details are shared with them. If a delivery person is not available, it is either put in the queue of an agent or another available agent is assigned automatically.
Once the order is received, the vendor starts taking out the items ordered, and the delivery agent loads the ordered items in the designated delivery vehicle. In the meantime, the app sends real-time notifications to the customer and the Admin about the order progress. The driver tracks the exact location of customers’ addresses and proceeds by utilizing turn-by-turn navigation through the app. A delivery confirmation message is sent to Admin and customers once the order is delivered to the customer’s address.
Customer App
Let us consider a few critical grocery app features on the customer app side:
Register/Login: The first interaction with the customer starts on the registration page, where the user creates their account on the app. Maintaining user records is essential to implement a hassle-free client delivery system.
Registration on the app can be done by email id and phone number. Nowadays, social media integration is also widely used, making the process seamless. The app should maintain this database complying with all security standards, ensuring comprehensive confidentiality.
User Profile Management: Once the account is registered, the customer needs to create their profile comprising information such as contact details, age, etc. The app should be capable of identifying and tracking personal user preferences, that will help provide targeted user services.
Product Browsing Amenities: The mobile app interface should provide a hassle-free shopping experience and must be optimized effectively (lite versions for budget smartphones, low data speed).
The app should enable the customer to easily search products from various categories, including price, brand, size, and also provide an option to compare different products based on pre-determined filters.
Advance Search Filter: The Grocery Mobile app should be easily navigable. The advance search feature lets the customer search for a particular product. It assists them in browsing through different category items and discover the desired products in the shortest time frame, ensuring a faster check-out time and increased efficiency.
Tracking and Delivery: Real-time monitoring allows the customer to be updated about their product delivery status progress, which will be useful in user engagement.
Push Notifications: This functionality allows you to transmit information about best offers, seasonal discounts, coupons on the customer’s screen using push notifications.
Add to Cart: The Add to Cart option allows a customer to add a product to the cart that he can make payment once he goes on the check-out page.
Manage Cart: This feature enables the customer to review and manage the items before making the payment.
Wish List: With this feature, the user can shortlist items that they would like to purchase in the future.
Payment Gateway Integration: Payment gateway integration enables the customers to make payment through the various available options.
e-Wallet Integration: The app can add an e-wallet, where the user can load funds, which will make the check-out process seamless and quick.
Scheduling the Delivery and Tracking Order: The convenient scheduling of the delivery, tracking the status of the order and knowing when it’s going to be delivered.
Delivery slot selection: This option allows the user to choose a time-slot for delivery as per their convenience, and decide whether to go ahead with the order if it is not available in the requisite time frame.
Discount Vouchers & Coupons: This option allows the user to view and apply the discount code at the time of payment on the app.
Order History: This option facilitates the customer to make a repeat order or choose a product from the prior history, thereby providing a seamless user experience.
Ratings & Review: Customers should be allowed to share feedback for a particular store or product on the application.
Help & Customer Support: Customers should be able to reach out to the support team if they face any challenges with order delivery, such as delay in delivery, wrong product delivered, contacting the delivery person, unavailability at the delivery address.
Location-Based Product Listing: The customer can pick a store form multiple grocery stores based on his location to order products.
Order Cancel, Return, and Replacement: If the customer receives a faulty product, they should be able to lodge a complaint, a return, or a refund request from the app.
Pick Up & Drop: The customer can choose the pickup and drop-off location of order within the app based on his/her location or by manually adding an address.
Admin Panel
One-click Dashboard: The dashboard is a centralized system where the Admin handles the entire back-end operation. Through the panel, the Admin can track orders received from the customers, manage inventory updates, and other business activities.
Manage Customers: The Admin of the grocery delivery app can add or remove users or change their active status. This feature enables the Admin to view complete information linked to users such as their contact details, address.
Payment Management: This function enables the Admin to view and manage all the transactions that have taken place in the app, including refunds. The Admin can also manage tax and commission related information in the grocery app.
Product Management: This feature enables the Admin to add products in bulk from the back-end. The Admin can enable or disable products depending on their availability, edit their respective details, as well as remove discontinued products.
Order Management: The option allows managers to assign grocery store orders once they receive a request from the customer. Once an order is confirmed, the store manager can assign it to a delivery person to carry the grocery products at the requisite place at the requested time. The Admin can monitor the order status, total amount earned per order, and make relevant business decisions.
Driver Management: This feature enables the Admin to observe all necessary information related to drivers such as their contact information, trip details, a commission earned, availability, login time.
The Admin can add or remove drivers, modify their information, and check their current status.
Modify Elements of the App: The Admin should be able to manage the entire process – start from the users and product information to changing the design of the application.
Reset Passwords: The app maintains the driver and customer database, and the Admin should be able to reset the passwords on user request.
Campaign Management: To attract and sustain customers, the app should have a facility to plan and run SMS, email, and Social Media marketing campaigns.
Plan Discounts & Promotions: This app feature allows Admin to add or run promotional offers or discounts on the app.
Inventory Management: This feature enables the Admin to monitor the real-time availability of all product inventory to manage orders. It will ensure that the Admin has timely information related to product stock and assist in business owners making the right business decision.
Manage Stores: This feature enables the Admin to add or remove stores on the app. The Admin can check the active status of stores and manage them.
Feedback Management: This feature enables the Admin to view customers’ ratings and reviews and check their feedback.
Manage Payments & Commission: Admin can track all the accepted online payments and set the commission rates with every Store partner.
Push Notifications: Admin can get the notifications of the emails, order delivered, drivers accepting the request.
Manage Menu and Item Categories: this function allows the management of products based on various parameters, according to the information shared by store partners
Reporting and Analytics: By leveraging real-time Analytics, the Admin can obtain actionable insights to manage the business effectively. The data assists the Admin to plan strategies to boost sales and user experience. Admin can monitor what discounts are gaining traction, what products are moving quickly, and optimize their offerings accordingly.
Other Features: The admin panel may include additional features such as Delivery Request Notification, Accept or Reject Delivery Request, Track Customer Location on Map, Get Delivery Confirmation, and more.
Delivery person module:
User Registration: Registration for delivery boy, is done on the mobile app through phone number and email address, and they can be directly onboarded to start taking delivery orders.
Delivery Boy Login: Once the delivery person logs into the app, all his assigned orders are displayed that allow them to plan and proceed accordingly.
Accept/Reject Delivery Requests: This feature enables the driver to accept or decline a particular order for a specific reason, for example, if the customer’s location is far away.
Push Notifications: Push Notifications can be sent to drivers to update them in real-time about order delivery information, such as new and canceled and the account debit information
Geo-Map Services: Map Integration is one of the Grocery App’s critical features. These services help the delivery person to pursue the buyers’ location efficiently. There are several geo-location service providers, such as GPS, Apple Map, and Google Map, that can be integrated into the app.
Route Optimization: Through this feature, the app recommends the shortest and fastest routes to the delivery person based on the customer’s location to help in on-time delivery
Scheduling Availability: This function lets drivers schedule the time when they would be available for delivering orders.
Delivery Time Slots: The time slots selected by the customers are shared with the drivers to help them know when to pick the order and deliver it.
Work History: The details such as total trips undertaken, distance traveled items delivered are shared with the driver so that they are aware of their performance metrics on any given day.
Earning & Reports: The invoice and earning details of the delivery boy should be readily available inside the application.
Ratings & Reviews: Drivers are allowed an option to rate and review their delivery.
Help & Customer Care: The driver should be able to contact the helpdesk if they face any challenges while order delivery quickly
Delivery Boy Tracker: This functionality will track the delivery boy in real-time while delivering the product at the specified address
Signature Feature: Once the order is delivered, the customer can sign on the application for delivery confirmation
Product Return: Once the customer applies for return and is approved, the delivery boy notifies the customer for product collection or replacement.
Delivery Request Notification: Once the buyer confirms the order, the vendor will receive the request for grocery deliveries, the order number, and required details such as a delivery address, contact number, etc.
In-app Calling or Chatting: The delivery person can communicate with buyers using voice calls or chat through the grocery app.
Delivery Notification: The store manager receives a notification about the delivered order along with the order number.
Vendor Panel
Items Management: Store owner can add/update their product listings, prices, minimum order quantity and amount, and make the products available for ordering.
Brand Management: If a vendor has multiple stores on the app, they should be able to manage these stores seamlessly.
Order Management: Store owners can check the order status (completed or under process), the total amount collected on each order, and take actions accordingly.
Special Offers/ Coupon Code Management: Store owners can plan and add new deals, discounts, coupons, and offers to drive sales and improve customer retention.
Order Alerts: Store owners get real-time notifications for new orders and can further action.
Track Payments: Store owners can add account details, view successful and pending payment settlements in one place.
Order Reports: Store owners should get real-time information about their business performance so they can take action accordingly.
Customer Support: With the customer support feature, the Store manager can efficiently address order or store related issues.
Add Products: The store manager can push new items to the store via this app and see the changes reflected in the app in real-time.
Receive Orders: This feature assists the store manager to receive the customer orders of different grocery items.
Start Trip: With this feature, the store manager will keep the product ready to deliver at the destination point.
Reject Order: If a product is out of stock or delivery is not possible due to specific reasons, then the store manager can reject it.
The features you incorporate are also determined by the business model you choose from the various grocery delivery business models in the market.
Technology Aspect
The development of an on-demand grocery app, apart from the list of must-have features is dependent on a multitude of factors, as mentioned below:
Technical Documentation:
Technical Documentation encompasses all written documents related to the app development, outlining the app architecture, business requirements, underlying processes, key features, user personas, analysis and scoping, techniques used in developing the mobile app, timeframes, budget.
UI/UX design cost:
UI/UX design considers usability, user interaction, desirability, and user experience with the app.
App Complexity:
App complexity is defined by the number of different functionalities contained in the app. Higher the number of features, the greater the cost of development. For example, a feature such as geo-location takes around 32 – 48 hours, while integrating a social login feature cost approximately $500 for each social network connection.
Deployment Architecture Model:
An on-demand grocery app needs to load information from a server or sync with a database, store data, communicate with other app users and upload images, etc. Back-end development generally comes with two options, Custom or Backend-as-a-Service (BaaS). In Custom, the clients get their own architecture while in BaaS, there are many readymade Back-end server providers such as Firebase and AWS. On average, connecting a server to your app via an API would cost approximately $10,000 – 24,000, while building a customized solution will be much higher.
Third-Party Integration:
The app needs to communicate with third-party apps (API) such as payment getaway to offer seamless services
Developing a basic app with elementary features, like a simple back end, and a pre-defined template with standard analytics functionality takes approximately 600 – 900 hours. While developing a mid-level app using high-level functionalities such as custom animation, media processing, and real-time sync takes over 1600 hours.
An on-demand grocery app is three apps combined into one, customer, delivery person, and the business. The app comes with several high-level functionalities such as in-app payment, real-time sync, real-time tracking, custom animation, rate, and review, push notifications, complex back-end with a different type of database relationships. Since there needs to be three apps to be developed, the cost also rises considerably and may take more than 2000 hours to build.
Choice of Platform:
Android is the most widely used mobile OS in the world, followed by iOS. There is not much of a variation in cost in developing the app for Android or iOS platforms, but there is a considerable difference in the screen size, resolution, and hardware capabilities on the Android environment, which may not be the case with iOS.
You may decide to build the app on only Android with its broader range. But if you want to reach a wide demographics of the audience, it is ideal for developing on both operating systems. This will have a significant impact on the budget.
QA & Testing:
Quality Assurance testing involves the testing of non-functional requirements such as performance, security, automation, usability, integration, and acceptance testing.
The Size of Development Team
The size of the development team is directly proportional to the amount of work that gets completed. The on-demand grocery shop requires a precise amalgamation of HTML and CSS, which may increase the development cost.
Development costs will also depend on the inclusion of niche developers and specialists. A freelancer or a small company with a team size of 5 to 10 people will charge less, while large-cap companies will command a premium.
Technology Stack
The technology stack used to create an on-demand grocery app varies from business to business. It depends on the skill-set and the budget fixed for the cost of mobile app development.
- Push notifications – Twilio, Push.io
- Database – Mailchimp Integration., MongoDB, HBase, Cassandra, Postgress
- Cloud environment – AWS, Google, Azure
- Payment methods – eWallets, PayPal, Stripe, Braintree
- Real-time Analytics – IBM, Apache Flink, BigData, Cisco, Hadoop, Spark
- Phone verification, Voice, SMS – Nexmo, Twilio
Location of App Development:
The cost of app development is heavily dependent on the location of the development team. Development costs are charged on a per hour basis and change progressively as we move from Asia to Europe and finally the highest in North America.
- India: $10 to $40 per hour
- Eastern Europe: $30 to $100 per hour
- U.S: $70 to $150 per hour
Grocery Delivery App Development Cost Breakdown
| Grocery App Development Stage | Hours to Develop |
|---|---|
| App Discovery | 80+ hrs |
| Idea validation | 40+ hrs |
| Visual prototyping | 60 hrs |
| Documentation | 60 hrs |
| UI/UX design | 130–190 hrs |
| iOS development | 600–800 hrs |
| Android development | 500–800 hrs |
| Backend development | 300+ hrs |
| Admin panel development | 60 hrs |
| Testing & Quality Check | 60 – 120 hrs |
| Total: | 1900–2400+ |
As mentioned in the breakdown developing an on-demand grocery delivery app would take approximately 1900 to 2400 hours. This can then be multiplied by the development rate (which varies according to the location), and you will get a fair idea about the development cost. So, we can say that the on-demand grocery delivery app development in India will cost anywhere between $20000 to $50000. Similarly, It can cost around $40000-$200000 in Europe or the USA.
Please note that this would not be the final cost, as apart from the core development, multiple factors will impact the budget.
App Marketing
Once the app is completed, it needs to be submitted for listing at the App Store(iOS) and Google Play (Android). The app would be reviewed to see if it complies with the standards specified by these stores, and a one-time fee is required to be paid.
Since there are a number of competitors, you need to put a marketing budget to promote the app, from getting reviewed by publications, creating compelling ads, etc.
Maintenance
The cost of building an app does not get over once the app is finalized and goes live. The app requires periodic updates with innovative features to keep customers engaged as well as draw new customers. Maintenance becomes an ongoing expense with the changing market trends and new device & OS versions to ensure lag-free operations on the app. Part of app support includes:
App Update
Error Eradication – The app needs to be rigorously tested through intricate white box and black box testing to ensure it is free from bugs when launched. In most instances, many flaws are highlighted once the app is published.
App Maintenance cost for a year can be assumed as 1/5th of the total app development cost.
Reusing Existing Code
It is usual for the cost of development to overshoot the budget; hence brands look for ways to optimize the budget, and one such area where you can save some money is reusing the code of an existing app. This can help in reducing the cost of coding by 20-30% as compared to developing it from scratch.
Cost is a critical factor in developing an on-demand grocery delivery app as it ultimately depends on the complexity level, a highly sophisticated app with a tech stack will cost more than $50000.
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