1. Introduction

These grocery apps online have seen the most drastic change during this recent lockdown period. As many new restrictions were introduced like social distancing and lockdown, many people started shopping for groceries and clothes online.

It was found out that almost 49% of people are actively buying groceries online using online grocery apps. It was also found that these apps are not only used by young people but also by people of the age group between 25-34. So grocery apps are no longer for certain age users.

Today we are going to talk about one such successful online grocery app that is Bigbasket. BigBasket was founded in the year 2011 and turned out to be one of the biggest grocery stores online. This was found by Hari Menon, VS Sudhakar, VS Ramesh, Vipul Parekh, and Abhinav Choudary. 

Today we are going to see or decode the business model of BigBasket. We will show you how it works, the building process, software, and the cost of building. So stay there and continue reading.

2. How Do Grocery Apps Work?

Online grocery stores are the connecting link between users/ buyers with local supermarkets or stores. Usually, in these platforms, we have three types of users, buyers, admins, and shoppers. And each of them has different applications to manage their work. 

Each store has its own different ways of delivery and order process but in most cases, you need an email or any social media to log into your account. By logging in to the website you can see the past orders and cart items. You can choose groceries or products from 22,000+ products and food items and get them delivered to your doorstep.

All you have to do is choose your product and place the order. And then wait for your order to reach you. This way it saves your energy, time, and money.

3. What is the Importance of an online grocery delivery app? 

Having an app for your grocery business can bring a lot of changes in your sales, business, and customer relationship. So now let us look at a few benefits that you get from the online grocery app development.

3.1 Improved customer Loyalty

As you know, customer loyalty is the most important part of any business. But it is not easy to find it. So you have to focus more on other aspects other than just selling groceries. The customers can use your app frequently when they get the best user experience. 

That is the reason why you have to choose the best mobile app development solutions for your business. However, points, rewards, promo codes also play a role in improving customer loyalty.

3.2 Improves Customer Relationship Management

Customer relationship management is a technology that usually manages all the app’s or company’s customer interactions and relationships with potential customers. Its goal is so simple. It improves your business and helps you stay connected with your customers and improves profits.

3.3 Better and easier order management

As you are the one using the admin panel of the app, you can anytime manage the complete inventory process and set alerts for important notifications. For example, you can set alerts when the stock is running low to know better about the orders and usage.

4. Statistics of Grocery Apps Usage

Source: Statista

As you can see from the above statistics, it is clear that the usage of grocery apps has grown enormously in less than a decade. In 2017, it was 12 million users used these online grocery apps for buying groceries. But within a 4-5 years gap, the usage has increased twofold. 

So don’t you think it is the right time to start growing your business online after witnessing these statistics?? But are you thinking about profits and returns? Here you go!

5. How do on-demand delivery apps make money ?

This can be one of the doubts that you can have before starting your business online. So we will walk you through a few points through which you can make money using the grocery apps.

5.1 Delivery charges

Delivery fee is one of the most common and most used ways to make money. Almost all online shopping apps charge a delivery fee from their users which is the minimum price. The price may vary based on locations and order size.

5.2 Retailer commissions

After you successfully start the on-demand grocery development app and list all the nearby stores and retailers in your app, you can charge a commission from the store owners on very successful orders and memberships.

5.3 Subscription fees

There are many people who like to receive regular groceries to their doorstep without ordering on a weekly basis. For users like that, you can offer premium services which can include fast delivery and other price discounts.

5.4 App advertisements

These ads play a huge role in the sales of a particular company/brand. You can give the screen space to various brands in your app, which is a win-win for both the owner and the brand. 

6. Big Baskets’ Market Share

With an annual net sale of $443M Bigbasket is the leader of the industry now. Bigbasket is a one-stop solution for all your home needs. You can not only buy groceries but also buy other home needs and kitchen tools.

Unlike its competitor Grofers, it sticks to particular chosen products that have the potential to grab customers’ attention.

7. What are the Features of Grocery apps?

Below are the few basic and must-have features of any online grocery app.

7.1 Easy sign up

The first thing every customer goes through before they start using your app is signing up to your app. So it has to be easier and effortless. Adding options like signing up through social media makes it more attractive other than just a mobile number and Gmail all the time.

7.2 A widers search process

As there are many products that are displayed in the app, it is only fair when the users have filters to narrow their choices and product shopping. This helps the users to shop easily and finish their shopping effortlessly.

7.3 Add to cart

It is one of the most important features that every shopping app must-have. With the help of add-to-cart options, they can add their required items to the cart and buy them later with just a single tap. Which also makes the shopping process without missing any products.

7.4 Recommendations

Recommendations also play a very huge role when customers are choosing their products. Based on the previous orders, the app can suggest or recommend the products to the users, which makes the shopping quicker than ever.

7.5 Push Notifications

Notification plays an important role when it comes to keeping customers actively updated with app updates and discounts. 

7.6 Payment options

Does shopping happily and struggling with payment seem like the right match? Obviously not. It makes the user less patient and more aggressive sometimes if the payment options are not wider. So including various payment options like cod, credit cards, debit cards are also key features.

8. What are the Technologies Needed to Build an App like Big Basket?

App Platforms: Android, iOS, Web App

Back-end developing software: Python, Node.js, .Net, Java

3rd Party Apps used: Google Map

Push Notifications using: Twilio, APN, Firebase

SMS, Voice, and Phone Verification: Nexmo, Twilio, Sinch

Payments options through: Braintree & PayPal, Stripe, E-Wallets

For emails: Mandrill

Database: MongoDB, Cassandra

Cloud Environment: AWS

Real-Time Analytics: Apache Flink, Spark Streaming

Traffic Analytics: Google Analytics, Appsee, Flurry, App Annie.

9. Grocery app model that suits your business the best.

Below are the few popular business models of an on-demand grocery delivery app. But why do we need a business model even before the app is developed? Because, choosing the right business model can influence the features, business complexity, and monetization strategy.

9.1 Aggregate model

This model is useful when you don’t have a warehouse to store groceries. In this case, your business will be acting as a bridge between customers and the grocery store. You will be providing services like pickup and delivery to the customer’s doorstep. Instacart is a perfect example of that business model.

9.2 Store-pick model

In this model, the users don’t need to wait for hours in the queue for buying the products. Unlike the Aggregate model it doesn’t provide any delivery services, the users can pick the products directly from the nearby store. Peapod is one right example of this business model.

9.3 Warehouse model

This model is highly followed by many successful online grocery development stores including Bigbasket and Walmart. In this business model, the users can choose the product directly from your warehouse and the team will deliver them to the users. This can provide a pickup option or free delivery at the nearest store.

10. How Much Does it Cost to build an App Like BigBasket ?

The cost of app development depends on the features and functions that are included in the app. However, for an on-demand grocery store online it may cost around $30-35,000 and with more particular and sophisticated features it may go up to $40,000.

10.1 Apps that are similar to Bigbasket

  1. Amazon Pantry.
  2. Grofers.
  3. Farm2home:
  4. Reliance Fresh:
  5. Nature’s Basket:

11. How can Techweblabs Help You?

We at Tech Labs already worked with many companies and developed on-demand grocery apps for our clients. If you are someone who is looking for an on-demand grocery app development company for your next project, we can transform your dream into reality.

You can reach out via mail or contact us here and get a free quote right away!


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