Cost To Create a Grocery Delivery App Like Instacart

Nowadays, people are dealing with work and a hectic schedule, so they have less time to purchase groceries. Grocery delivery apps like Instacart have acted as a boon for people. This means startups still looking to boost their market value can enter the online grocery delivery marketplace. It's a great way to attract and facilitate users' easy ordering of their desired items in just a few clicks, and receive them at their doorstep.

However, the demand for grocery delivery apps like Instacart, GoPuff, and Shipt Shopper is at its peak. According to research, the grocery delivery app market is projected to reach around $938.98 billion in 2025. That means the average expected annual revenue growth rate is projected to be around 9.74% (CAGR 2025-2030).

So, now, let's understand the overall cost of building a grocery delivery app like Instacart. A wide range of factors impact and reduce the cost. Have a look at the information mentioned in this blog to get clarification.

What Is Instacart?

Instacart is an online grocery delivery and pickup service that allows users to shop for groceries from their favorite local stores through its platform. Customers can browse items, add them to their cart, and choose a delivery or pickup time. Instacart connects users with personal shoppers who pick, pack, and deliver the groceries to the customer's doorstep, or prepare them for pickup if the customer prefers to collect them themselves.

Instacart partners with major retailers, such as Costco, Safeway, and Kroger, to offer a wide selection of products, including fresh produce, dairy, snacks, and household essentials. It’s available as a website or through a mobile app, providing a convenient solution for people who want to shop for groceries without having to visit stores in person.

The service often includes options for same-day or next-day delivery, and users can also sign up for a subscription plan called Instacart+ (formerly Instacart Express) for benefits like reduced delivery fees and free delivery on orders over a certain amount.

How does an App like Instacart Work?

An Instacart clone is an online platform that connects customers with grocery stores and restaurants, facilitating order placement and delivery. The app combines technology and a network of shoppers and drivers to handle the entire process, from browsing to delivery.

1. Sign up

Users sign up using email, phone number, or social media accounts. Multi-factor authentication can be added for security. Users create a profile with address, payment method, and preferences.

2. Browse and Filter

Users are enabled to browse and filter the products they want to order. This means that based on location, product categories (e.g., dairy, vegetables, snacks), price, and quantity, the products will be displayed on an app like Instacart.

3. Add to Cart

Users add items to their virtual cart with quantity adjustments. This means users can select several items by adding them to the cart. This will make grocery purchases easy and convenient.

4. Apply Coupons

Users apply promo codes, coupons, referrals, or select from in-app offers. Apart from this, loyalty points and memberships can be integrated into the grocery delivery app like Instacart.

5. Payment Gateway Integration

A feature of payment gateway integration provides users with multiple payment options. This results in users being able to pay via credit/debit cards, e-wallets, UPI, and cash on delivery.

6. Order Processing

Once the user confirms their order, the order will be further processed to check the availability of the items ordered by the user.

7. Real-time Order Tracking

Customers receive real-time updates by tracking the respective shoppers/delivery drivers. Shoppers can chat with users for order confirmations. GPS integration facilitates this; users can easily navigate the driver's location on the map.

8. Delivery

Users will get their desired grocery items at their doorstep in the shortest possible time. Once the delivery is done, users are able to review and rate the driver accordingly.

Features Included In The Grocery Delivery App

The features to be added to a grocery delivery app like Instacart vary according to the customer, delivery driver, and vendor. This is because the roles of all these are distinct. If you want to be at the top of this niche, you must add advanced features and functionalities that grab the users' attention.

Customer App

The customer App will include a wide range of features that make it look more user-friendly. Some of the features are stated as follows:

1. Sign-Up: The basic but essential feature is to make a person use an Instacart-like app, by signing up. For that, the customer needs to fill in the details like email and phone number. Now, there is another option where social media integration helps in the smooth login of the application.

2. Search and Filter: A search bar helps customers search for particular items. The filter options remove the unnecessary things that the user doesn't want.

3. Real-time Tracking: The customer requires constant item updates. They want to know where their orders have reached, so they are updated about their order status in real time.

4. Push Notifications: With this, users receive notifications of their order confirmation, cancellation, processing, and delivery details via SMS.

5. Customer Support: With a customer support feature, users can convey their message regarding order delay, and some additional add-ons like finding products, guidelines, and immediate support from admins or vendors.

6. Order History: The order history feature enables users to review their past orders in case of a reorder, track spending, or find an item. Additionally, this feature grabs users' attention and gives them a user-friendly experience.

7. Multilingual Support: Now, users don't need to face a language barrier to communicate with their respective delivery partner or admin. Multilingual support lets users connect with delivery drivers, admins, and vendors in multiple languages.

8. Review and Ratings: This feature lets users share honest reviews about their overall experience with a grocery delivery app like Instacart. 

Vendor Panel

The vendor panel must properly handle the items, orders, and discounts that apply to the products.

1. Order Notifications: The vendors are informed about the latest real-time orders. They are also offered the facility to add orders, make a proper listing, check the status, and monitor everything related to the amount.

2. Tracking Payments: The vendors can view, track, and detect pending payments. This approach helps reduce scams or fraudulent payments.

3. Rejecting Orders: This feature is handy if the item is unavailable or out of stock. If an order comes in, the vendor can automatically reject it.

4. Profile Management: This feature enables the vendors to manage the overall profile of their stores. This means vendors can update the location, contact information, and essential business details on the Instacart clone.

5. Product Management: This grocery category or product management feature will help vendors update their products and categorize them according to quantity, price, description, and images.

6. Delivery Management: This feature enables vendors to assign the respective deliveries to the drivers to ensure timely delivery. It also helps vendors analyze and track the overall delivery progress.

7. User Management: Vendors can manage users' accounts by analyzing their order history and offering them extra discounts, referral points, and promotions.

8. Review Management: The review management feature allows vendors to connect directly with customers and respond to their reviews accordingly. Thus, users' feedback helps vendors improve.

9. Loyalty Management: The loyalty management feature enables vendors to offer users distinct coupons or rewards for repeated orders.

Driver Panel

The driver panel streamlines deliveries, ensuring swift and efficient service. It also tracks orders, manages routes, and enhances customer satisfaction.

1. Order Request: It facilitates the delivery boy's decision to accept or reject the request, depending on the item's availability/non-availability.

2. Real-time GPS Tracking: This feature displays the optimal route, which is both quick and shortest, to reach the destination.

3. In-app Chatbots: This feature allows smooth communication between the driver and the customer in case of any issue the customer faces. Thus, this virtual assistance helps users manage and place orders.

4. Multilingual Support: Multilingual support enables the drivers to connect with the respective user or admin in any language. This feature automatically reduces the inconvenience of delivery.

5. Payment Processing: This feature detects whether the transaction is reliable, secure, and transparent and secures the drivers' additional fees and commissions.

6. Ratings and Reviews: Drivers can also leave ratings and reviews about their overall experience with the user. This will enhance accountability and customer experience.

7. Transaction History: The transaction history feature allows drivers to recheck their assigned and completed orders and analyze their money transactions accordingly.

8. Push Notifications: The feature of push notifications sends important alerts to the drivers, such as new orders, payment confirmation, and delivery updates, etc.

9. Route Optimization: With the help of route optimization, drivers can easily plan an efficient route for delivering specific orders. This feature will reduce the unwanted delays.

Admin Panel

The features that facilitate the admins are mentioned below:

1. Order Management: Order management enables admins to track and analyze whether orders are delivered, in process, due, or delayed.

2. Inventory Management: With this feature, admins can maintain a list of empty or low stocks to update users for specific items.

3. Delivery Management: This feature allows the admin panel to easily manage and assign orders to delivery personnel and track deliveries until they are securely delivered to the customer.

4. User Management: Admins can manage the user profiles and categorize them into customers and delivery drivers. This will reduce the chances of scam profiles.

5. Analytics and Reporting: Analytics and reporting are useful features for analyzing users' behaviors, maintaining revenue generation reports, and detecting key metrics. However, this feature will also optimize performance improvement.

6. Payment Management: This feature enables admins to detect payment processing and transactions between users and drivers and manage refunds.

7. Customer Support: The customer support feature lets admins directly connect with users to address their queries and issues.

8. Promotions and Discounts: The admins create and offer multiple discounts, promotions, referral points, and rewards to the users at every purchase.

9. Content Management: The admins typically manage the product description, update the promotional banners, and grocery delivery app content.

How much does it cost to build a Grocery Delivery App like Instacart?

The average cost to create a grocery delivery app like Instacart is around $5,000. However, a wide range of challenges and considerations must be clear before stating an exact mobile app development cost. Also, choosing an experienced grocery delivery app development company is essential for reliable and cost-effective results.

As the demand for online grocery delivery continues to rise, businesses are increasingly exploring the opportunity to develop an app like Instacart. However, understanding the actual cost of building such an application requires an in-depth evaluation across multiple aspects. Below is a detailed analysis for B2B stakeholders looking to invest strategically in this domain.

1. Platform

Choosing between iOS, Android, or cross-platform (Flutter, React Native) development significantly impacts the budget:

• iOS/Android (native) apps tend to have higher development costs due to separate codebases.
• Cross-platform solutions offer faster development cycles and cost savings for MVPs.

2. Features and Functionalities

The more complex the feature set, the higher the cost. Core features include:

• User registration & authentication
• Real-time GPS tracking
• Product search & filtering
• Cart & checkout
• Payment gateway integration
• Order history & notifications

Advanced features such as AI-based recommendations, voice search, and dynamic pricing will add to the cost.

3. UI/UX

A sleek, intuitive interface is vital for engagement and retention. Costs increase with:

• Custom design requirements
• Responsive layouts
• Interactive elements
• Accessibility compliance

4. Testing

Comprehensive QA across devices and platforms includes:

• Functional testing
• UI/UX testing
• Load/performance testing
• Security audits

5. App Security

To safeguard user data and payment info, security measures such as:

• SSL encryption
• OAuth 2.0
• Data masking
• Two-factor authentication

6. Custom Animations

Animations improve user experience but add to design/development time:

• Interactive transitions
• Product loading effects
• Micro-interactions

A Cost Breakdown of a Grocery Delivery App - Considering Several Advanced Aspects

Several factors typically influence the overall cost of building an app like Instacart. Some of the most relevant aspects are precisely discussed below.

1. App Complexity

App complexity is the foremost factor raising the development cost of a grocery delivery like Instacart. This means the more advanced features and functionality you want in the app, the higher the cost.

2. Development Team Size and Expertise

The number of the development team's experts greatly influences the cost of creating an on-demand grocery delivery app. Even if they add to project costs, testers, project managers, team leads, app developers, and UI/UX designers can enhance project management and execution, allowing for a quicker app launch.

3. Location of Hired Expert Developers

The location of the development team is another crucial aspect that directly influences the expense of creating a grocery app like Instacart.

4. Technological Advancement / Tech Stacks

Developers employ technology stacks to create on-demand grocery applications like Instacart, with variations depending on each business's specific expertise and financial capabilities. This approach is vital because it directly impacts the overall cost of an Instacart clone.

Programming languages: JavaScript, Java, or Kotlin are used to build the app's front-end and back-end features.

Front-end development frameworks: React Native, Angular, or Vue.js.

Back-end development frameworks: Node.js, Ruby on Rails, or PHP.

Database management systems: MySQL, MongoDB, or PostgreSQL.

Payment gateway integration: Stripe, PayPal, or Braintree.

Location-based services: Google Maps or Apple Maps.

5. Third-party Integrations

The cost might increase if you choose third-party integration, such as GPS navigation, AI integration, payment gateway integration, and other technologies. However, this will make the Instacart clone more advanced and accessible for users.

Methods to Reduce the Development Cost of an App like Instacart

Even though developing a mobile app for a business can be expensive, there are several ways to reduce expenses without making major compromises. Here are five effective techniques for reducing the overall cost of grocery app development.

1. Describe the Essential Elements

Decide which features are essential to your app first. Pay close attention to features like product search, payment gateway integration, order tracking, shopping cart, and user registration. Avoid adding unnecessary functionality to the initial edition since this could make developing a grocery delivery service similar to Instacart more difficult and expensive.

2. MVP Methodology

Release a minimal viable product (MVP) instead of starting from scratch with fully complete software. This enables you to get feedback from customers, use primary capability to assess the market, and gradually introduce updates. Time to market can be shortened, and the cost of developing a delivery service app can be significantly decreased with this iterative approach.

3. Utilize Open Source Technologies

Using free and open-source frameworks and technologies, create a grocery delivery software similar to Instacart faster and cheaper. Frameworks like React Native and Flutter make cross-platform app development possible, allowing code to be separated for iOS and Android operating systems.

4. Outsource Development

Consider outsourcing development projects to nations where developer costs are significantly lower. Additionally, it might be highly expensive to develop an inexpensive grocery delivery software similar to Instacart. But be sure the mobile app development company has a history of success and has built apps that are on par with previous ones.

5. Cloud-Based Solutions

Utilize cloud services to host your website and manage your data. Cloud solutions are more flexible, scalable, and reasonably priced than traditional web hosting. By allowing you to pay only when needed, they help you keep prices under control when your grocery app, like Instacart, grows.

Explore the Revenue Generation Model of an App like Instacart

Now that you have developed a grocery delivery app, what should you do? You must figure out how to monetize your grocery delivery app like Instacart if you want to earn a lot of money. We have therefore compiled a list of the most popular revenue-generating strategies that are helpful for your business growth.

1. Commission-based Model

One of the most popular revenue-generating models for grocery delivery apps is the commission-based one. Admins get a commission with each order placed through the grocery delivery app, making this approach proficient for businesses.

In order to generate revenue, the grocery delivery app partners with local establishments such as shops, restaurants, and supermarkets in exchange for a portion of each sale the service facilitates. An amount is deducted as a fee for each sale made using the app.

2. Collaborative Partnership

To generate revenue, a lot of on-demand grocery delivery applications leverage clever partnerships with other companies or platforms. They gain more users, retain those users longer, and make more money as a result. Under this strategy, the grocery delivery app collaborates with other platforms or businesses to establish mutually beneficial relationships.

By collaborating, these retail applications may expand their brand awareness, boost transaction volume, and reach new markets. The app can increase revenue and provide users with a better and seamless experience.

3. Surge Pricing

Surge charges are frequently used by the admins in order to increase revenue during periods of high demand or low availability. In order to profit from the increased demand and attract more drivers or delivery partners, it entails temporarily raising the prices of goods or services.

Surge pricing allows the grocery delivery app to instantly adjust prices in response to market conditions, such as during peak hours, special occasions, or periods when demand exceeds supply. Real-time data analysis and algorithms are frequently utilized in surge pricing to determine the optimal surge increase to add to the base price.

4. In-app Advertising

On-demand grocery delivery applications frequently help the admins generate revenue through in-app advertisements. This approach displays advertisements in the grocery delivery app's user interface. The delivery app may contain banner adverts, pop-up ads, or intentionally inserted paid content.

5. Delivery Service Fee

On-demand purchasing and delivery apps typically generate revenue through the delivery service fee. For each delivery, users need to pay a fee via grocery delivery apps like Instacart. The app is maintained with the money collected from this fee, which is included in the order's total cost.

Why Choose Hyperlocal Cloud For Grocery App Development?

With 4+ years of experience in on-demand mobile app development, we are a team of specialists who know how to deliver a successful output in a shorter time. Our developers build the apps from scratch or offer white-label solutions. We analyze everything from top to toe and then perform cost projections. We follow a transparent pricing model, so you will know every minute detail regarding the expected outlay to build an app like Instacart.

Hyperlocal Cloud Inc. has set the horizon for personalization with respect to the features, designs, interfaces, and platforms. So, what are you waiting for? Reach out to us and connect with our team, and initiate your grocery delivery app development journey.