The consumer is more aware of what they eat now and is consciously making healthy and organic choices, leading them towards a good lifestyle. At the same time, they are looking for convenience as we speak, in buying their groceries and food supplies, and getting their hands on supplies from across borders, which is why they favor the online grocery shopping. The online grocery delivery chain is fast evolving as a result and is becoming a hot favorite, not just with the consumers, but also with the investors.

Recently, Grubmarket, an online grocery delivery platform, raised $32Mn from investors. You can also learn the important lessons for the grocery business that you will be required to incorporate. Grubmarket wants to grow and expand its business, away from the home market. They plan to take their business to New York and New Jersey, this October.

Let’s get onto some insights about Grubmarket. The platform was launched in 2014 by Mike Xu, and is based out of San Francisco Bay Area. It is not just a delivery service app, but also a platform for the farmers and food markets.

It is one of the biggest mushroom suppliers in the Bay Area. They are working constantly on improving the grocery on-demand market and improving the lifestyle and comfort for the consumers.

With Grubmarket out in the open, a lot of players in the grocery delivery service business are starting to reinvent themselves. Amazon Pantry is one among them. The Amazon pantry is nothing but an Amazon prime grocery store. AmazonFresh is a service that delivers groceries at the customer’s door and also arranges pick up from the retailer store. AmazonFresh is a favorite local store in cities like Boston, Baltimore, Dallas, Chicago, New York City, London, parts of California and New Jersey, and more.

If you are planning to start your own grocery delivery app, then there are important lessons from Grubmarket that you need to incorporate.

A Business Model that is Far-Reaching

The business model is very important when you set out to develop an unconventional app. It is the model that will help you identify your consumers, and retain them. Grubmarket has understood this aspect and has defined its business model, ensuring it not only helps the consumers but also the sellers and the farmers.

Let’s start with consumers. When you are planning a platform for the consumers, you need to understand what they are looking for, and how they consume the products. In the case of groceries, most of the consumers of today are looking at organic and healthy supplies.

Grubmarket has understood this need clearly and has included supplies that are organic and healthy. They allow the fresh produce from the farmers or the markets to reach the consumers, thus ensuring a win-win situation for the two of them.

With this business model, the perishable goods reach the consumers well in time, and the farmers get a good incentive from their sell. The sellers here tend to sell the produce at a cheaper rate compared to real markets, without compromising on the earning of the farmer.

Grubmarket has also hosted the B2B marketplace, where they connect with schools, restaurants, and other businesses to sell their produce directly. This way they have a better reach, and the restaurants, as well as other business consumers, can reduce the overhead costs.

The business model for the grocery delivery apps should take care of the needs of all players, and offers every single one of the convenience. This is all done without compromising on the reach.

The Pricing Structure

When we say pricing, it is important that you have a very competitive pricing structure on-board, in order to steer your way ahead of the others. Grubmarket has adopted very competitive pricing, which helps them succeed. You are able to buy the produces at a price 50% less than the other grocery delivery apps.

Yes, you can all get into this price bracket. However, the most valuable lesson comes in the form of quality. The platform delivers the goods at a good price without compromising on the quality of the produce.

They cut the prices of the grocery items in order to ensure faster and better delivery. The pricing structure and one that is in line with the others will help you steer ahead. It is also important to maintain the quality of the product while you are defining the pricing structure.

Faster Adoption of Technology

In order to make their deliveries better and faster, they have taken over the evolving approach, and have also adopted some of the major emerging technologies known.

They have developed apps to manage the logistics of the produce, starting from the produce to the markets, and then the consumer’s home. They have adopted AI to help forecast the quantity of fruits and vegetables that might be sold in a particular year.

They have also invented the Farmbox, which allows the users to collect points, only to spend them in the farmer’s market. They are also exploring opportunities to use Blockchain in their mobile app for grocery shopping.

Another lesson that you can learn from them is the way they cater to the high-income group from day one. They know their audience well and cater to items that will be purchased by them.

Apart from technology and approach, the platform is able to adapt itself to the fast-changing and ever-evolving grocery segment, thus reinventing itself to suit the needs.

Summing up

The growth in the online food delivery app segment is remarkable, and the segment is slowly advancing with the adoption of technology. You will need to make sure you evolve with the needs posed by the market and offer a structure that is reliable and convenient to the users. The app development cost depends entirely on the features you want and the phases you want to divide the development into.

Coruscate has been successfully catering to the mobile app development needs posed by businesses for both iOS and Android. With our expertise in technology and rearing energies, we help businesses grow profitable with their app solutions.

Note: We do not make clones of any exact application, clone means to us is how better we can execute your app idea with existing app features and experience.