grocery app development – Oyelabs – Driving Business Value

Create a 10-minute Grocery Delivery App like Zepto

Anurag Jain — Wed, 17 Aug 2022 13:47:52 +0000

Food and grocery aggregators are thrilled by speed. Groceries are being delivered faster than ever, making speed and efficiency the most critical components of users’ buying experience. They have empowered customers who make a purchase through mobile apps and don’t have time to go to the grocery store or want to avoid the hassle of dealing with traffic and parking, order anything from anywhere, and get it delivered on time at their doorsteps. The supply chain disruptions triggered by the pandemic led to the development of a new online delivery sub-vertical called Quick Commerce, or q-commerce, with a unique selling proposition of deliveries within 10-30 minutes of ordering. This model moves away from the traditional formula of well-stocked large-format warehouses located on the outskirts of cities and focuses on setting up micro-warehouses closer to the point of delivery and restricting SKUs under 2,000 high-demand items, then using algorithms to send drivers on the fastest routes through the crowded street of Mumbai, Bengaluru, Kolkata, and other cities. Interesting in launching your own online-delivery platform like Zepto? Get all insights The Opportunity in the Indian Q-Commerce Market India is fast emerging as a global leader in Q-commerce. Investors have poured billions of dollars into delivery startups that promise to bring that next order of fresh coriander, Lays potato chips, vim bar, and lux soap within minutes rather than hours or days. While e-groceries account for just 2% of all retail grocery sales in India, they’re one of the fastest-growing segments of commerce, and startups are wagering that they can change consumer habits and grab a share of the $1 trillion market. According to Sanford C. Bernstein analysts, India’s online grocery retail market is expected to be worth $21 billion by 2025 and reach 3-5% of the overall retail market share from less than 1% today. This is expected to be driven by rising income and affluence, evolving customer habits, higher e-commerce penetration, and a tech-savvy generation who prefers to make online purchases. As their standard of living rises & their daily schedules become more stringent, consumers are flocking to convenient, personalized internet platforms to shop for groceries instead of walking to local stores. From Zomato-owned Blinkit to Google-backed Dunzo and Softbank-powered Swiggy, many swear by the 10-minute delivery model. Let’s take a closer look at Zepto, which has disrupted India’s highly competitive online grocery delivery market and has become one of India’s leading providers of quick delivery services. What is the Zepto app? Zepto is a quick-service on-demand delivery app that promises to deliver your groceries in as little as 10 minutes. The firm is eponymous with the term Zepto second, which denotes “a factor of 10⁻²¹, reflecting the smallest unit of measurable time. Customers can choose from thousands of products, including farm-fresh vegetables and fruits, groceries, dairy products, personal care products, beauty and wellness, home essentials, baby care, etc. Zepto Grocery App Success Story Zepto’s success lies in its ability to routinely inventory and deliver over 3,000 products in less than ten minutes. Launched in April 2021, it has expanded delivery services in 13 cities with over 100 dark stores in less than a year. Zepto is forecasting to generate revenue of $1 billion by March 2023. The startup recently posted 800% quarter-over-quarter growth with a net promoter score of 88. The app is adding 100,000 new customers every week, with 60% of them women. Zepto – The Origins of on-demand Delivery Zepto was founded by two 19-year-old entrepreneurs, Aadit Palicha, CEO, and Kaivalya Vohra, CTO. Both were pursuing a bachelor’s degree in computer science from Stanford University and had returned to India for a break just before the coronavirus pandemic engulfed the country. The two founders were bitten by the entrepreneurial bug and had partnered on several projects. However, while the pandemic was raging, the biggest problem the two bachelors were facing was getting groceries and essentials delivered to their area. Although grocery deliveries were categorized as essential by the government, high demand for these items resulted in prolonged delays. The founders felt that the Indian e-grocery delivery space was grappling with gross execution errors and needed to have a grocery delivery service that was fast, convenient, and reliable. How does Zepto Deliver So Fast Zepto’s ultra-fast delivery service operates under the q-commerce model underpinned by dark store distribution outlets. These facilities allow the company to fulfil its ten-minute promise on up to 90% of orders. The company claims to provide a frictionless delivery experience and boasts a median delivery time of 8 mins 47 seconds. The startup works with contractors or gig worker partners for its delivery fleet, who are always on standby, ready to deliver groceries as soon as possible. Zepto Business Model – Dark Stores Zepto’s fast delivery business model is supported by a network of dark stores or retail distribution centres that service customers within a 3-kilometre radius. These Dark stores possess the following characteristics: Not open to the public. Located in high-demand neighborhoods. Stock a lower variety of products in exchange for sub-hour delivery times. Ergonomically designed to enable packers to move swiftly and efficiently. Keep inventory stock track and product assortment with the help of AI-powered tools. The magic of Zepto’s dark store model is that from the time a customer checks out of the app till their groceries are packed and dispatched — the entire process takes 60 seconds or less. While the last mile delivery is similar to any other delivery model. Zepto employs the PPB Formula for the success of the dark store model: 1) Picking- Zepto’s packers are equipped with tablets to know where each item is stored and get an optimal route to pick them up. 2) Packing – All the items are collected and packed quickly. 3) Bagging – As soon as the delivery agent receives the order, the agent must exit the warehouse. Dark stores are not a novel concept; such centres are common in the USA, Russia, and other larger economies. However, managing their […]

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Best Guide to Building a 10-Minute Instant Delivery App like Blinkit

Anurag Jain — Wed, 17 Aug 2022 13:36:59 +0000

Grocery shopping used to be a tedious and time-consuming job! Go to your local store, and you may not find all the necessary items. Go to supermarkets, find and pick up the products, stand in a long queue to pay, and carry them home every day, week, or month! Online grocery delivery app like Blinkit transformed how people buy groceries. The ability to purchase all required items with a single click and get them delivered to your doorsteps has altered consumer behavior and increased the opportunity for online retailers. According to Statista, the market value of online grocery across India was Rs. 396 billion in 2022, but it only accounts for 1% of the overall grocery shopping for Indians. Online grocery shopping is evolving further with the introduction of quick commerce (Q-commerce), where companies like Blinkit promise instant grocery delivery within 10-min or even less. Based on your location, the delivery time can vary between 10-30 mins, and there are cases where the orders are delivered in just 7-8 mins. Consumers who have traditionally been subscribers of neighborhood Kirana stores have turned to on-demand apps for buying groceries and other convenience items. According to a study by RedSeer consulting, as of 2020, the potential addressable market for local e-grocery players was estimated at 130 million online transacting households. What is the need for 10-min Instant Grocery Delivery Services? Businesses are focusing on quick commerce due to a shift in customer purchasing habits and preferences, from value-seeking to convenience-seeking, resulting in small-sized purchases rather than larger, monthly purchases. Companies have realized that Q-Commerce is the way forward in the FMCG space due to its regular usage, heavy consumption, and user demand, primarily targeting middle and upper-class consumers. Instant grocery delivery can be beneficial, for example, when you are hosting a party at home, missing some essential items, or returning home after a tiring day but have to cook food for your family and don’t have all items at home. In these cases, ordering on the go while you travel helps. How is 10-min Instant Grocery Delivery made possible? Companies have dark stores every 2-3 km of targeted regions. Dark stores do not have storefronts and are used by companies as fulfillment centers to store their inventory. The online delivery firms generally partner with local merchants to run and manage these stores. These small-sized stores contain all the groceries you see on the app before ordering based on your locality. When you place the order, the fulfillment team quickly prepares your order and hands it over to the delivery person for delivery. Blinkit claims to have a network of 300 dark stores. About Blinkit? Grofers, an online delivery app, rebranded itself as Blinkit when it pivoted to launch its quick-commerce service to deliver groceries and other necessities within 10 minutes of a customer’s order. Blinkit helps customers shop on the go for groceries, fresh fruits and vegetables, bakery items, meats and seafood, cosmetics, electronics, baby care products, and an extensive range of household items through its website or mobile app and delivered to their door quickly and safely. The company claims to have more than 2 lakh customers and offers 10-minute delivery service in 12 cities. What are the benefits of using Blinkit? User-friendly app: the Blinkit app comes with a simple interface that makes it easy for customers to find what they’re looking for and check out speedily Fast and convenient delivery: Blinkit’s delivery service is extremely fast and convenient, making it an excellent option for busy people who need to get their groceries delivered quickly. Wide range of products: The Company offers a wide range of items, from fresh produce to household essentials and other products, so customers can find everything they need in one place. Competitive prices: Blinkit offers competitive prices on its products, making it a great option for budget-conscious shoppers. Blinkit’s Business Model – How it Works The Blinkit business model is based on a simple concept of delivering products in less than 10 minutes. Blinkit has collaborated with local businesses and brands, logistics, warehouses, and payment partners, to provide groceries and daily necessities in the surrounding communities. Blinkit has partnered with local mom-and-pop shops to display and sell items from their stores via Blinkit’s app. These stores don’t need to invest in logistics or packaging to sell via the app. Blinkit provides last-mile delivery services to these stores, resulting in increased sales and earnings for the store from nearby neighborhoods. Partner stores receive more orders due to the increased visibility, while Blinkit profits by charging a percentage-based commission for these transactions. For orders below Rs 700, Blinkit’s commission to the merchant ranges from 8% to 15%, while the fee ranges from 12% to 15% when orders are less than Rs 1000. If the order is less than Rs 250, Blinkit also charges a delivery fee to the customer. Blinkit also provides targeted placement on marketing materials and logistics support that could help new brands attract and connect with customers from a wide range of demographics, which could assist brands in gaining popularity. Delivery partners are independent contractors who work with Blinkit to pick up grocery items requested by customers via the Blinkit app and deliver them to the customer’s residence using their own vehicles. Blinkit pays the delivery partner on each delivery made. A delivery partner is expected to deliver 8-10 orders per day based on the delivery distance and weight of ordered items. A delivery partner could earn up to Rs 30,000 per month with incentives and other benefits. Another way that Blinkit makes money is through advertising. The platform sells ad space to businesses who want to reach Blinkit’s large user base. These ads can be in the form of banner ads, product recommendations, or even video ads. Finally, Blinkit also makes money through partnerships with banks, credit card companies, e-Wallets, etc. The future of instant delivery apps like Blinkit In FY2021, quick-commerce in India was valued at $0.3 billion and is projected […]

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Grocery Delivery App Development Cost Estimates in 2025

Sushmeet — Sat, 30 May 2020 13:16:50 +0000

The post Grocery Delivery App Development Cost Estimates in 2025 appeared first on Oyelabs - Driving Business Value.