How to Control the Online Grocery Industry via an App like Instacart Clone?

Technology has undoubtedly made our lives better. Today, with just a few taps on our smartphones, we can get high-quality products and services right at our doorsteps. The Covid-19 pandemic played a significant role in changing the future of the retail industry. Running a brick-and-mortar store became impossible and unsustainable in these times of lockdown measures and social distancing. Hence, even big hypermarkets, provision stores, and supermarkets are selling online. Importantly, they are attracting a large customer base by partnering with popular e-grocery platforms like Instacart Clone.

The Instacart app offers on-demand grocery ordering and delivery services for millions of American and Canadian customers spread across 5500 cities. It sells a whopping 500 million products from 55000 stores.

Further, Instacart has a humongous market valuation of $39 billion. The online grocery delivery platform’s worth would likely cross $50 billion after an Initial Public Offering (IPO) scheduled by the end of 2021.

How is Instacart ruling the Canadian online retail industry?

• While Instacart Clone is available in almost all 50 states of the USA, it has expanded quickly to Canada (covering all the 10 provinces).

• Currently, the American platform is offering instant grocery delivery services in densely populated cities like Montreal and Quebec.

• The Instacart platform has also attracted customers by translating all its content from English to French. This is because the majority of 1 million shoppers in Quebec are originally from France.

• Further, Instacart will grow its online grocery delivery business to other cities like Gatineau and Sherbrooke in the coming months. It will collaborate with Pharmaprix (a retail pharmacy chain) and Sephora (beauty products and cosmetics selling platform) to boost its overall market share.

• Above all, the Instacart e-grocery platform has tied up with 1800 brick-and-mortar stores across Canada to deliver essential products swiftly to customers.

Why must entrepreneurs create an app like Instacart?

Online grocery sales in the USA crossed a mind-boggling $8.4 billion in April 2021. The overall sale of groceries through digital platforms like Instacart has grown by 4 times when compared to the start of the Covid-19 pandemic.

A whopping 67.8 million households in America ordered their groceries online in April this year. Interestingly, the growth in curb store pickup and home delivery of grocery items has been 6% and 3% respectively in the last year.

Likewise, the Canadian market witnessed $3.9 billion in the sale of groceries in May 2021 through e-commerce platforms. April 2020 was the start of the Canadian online grocery revolution. The number of new e-grocery customers increased by 58% in 1 month after the emergence of the coronavirus pandemic.

What is the meaning of an Instacart Clone App?

Futuristic business visionaries can strike success in the North American market. They can establish an app like Instacart in collaboration with a skilled app development company. Trained developers will create easy-to-use Android and iOS apps for customers, delivery personnel, and retailers.

Shoppers can order their desired groceries via a modern web panel after checking details like availability, discounts, ingredients, and prices. Furthermore, a sturdy admin dashboard shares real-time information about daily business operations.

How entrepreneurs benefit from Instacart Clone App Development?

• Owners of an app like Instacart will earn hefty revenue – from a commission from retailers for each sale, order cancellation charges paid by customers, Gross Merchandise Value (GMV), Instacart Express (monthly and yearly) subscription plans, publishing of targeted banner ads and sponsored posts, registration fees from new sellers, and transaction processing charges.

• Entrepreneurs can run an all-in-one online supermarket – by selling different types of alcoholic beverages, bakery goods, beauty care items, dairy products, frozen food, fruits, household essentials, meat, office supplies, plant-based food items, seafood, and vegetables. Hence, owners of an Instacart clone app can operate a one-stop destination for branded groceries.
• Lightning-fast growth of business operations is possible – by offering online grocery ordering and delivery services via an app like Instacart. Entrepreneurs can expand their business scope to new cities and states. Hence, they will witness a surge in average order value, daily active users (DAU), market share, and profits. Hence, a tailor-made Instacart clone app is highly flexible and very scalable.

What are the expectations from an app like Instacart in the future?

Instacart will grow its Gross Merchandise Value (GMV) by $27.33 billion until 2025 according to a report by Ascential Retail Insight. In particular, it will overtake Target, a popular e-commerce platform’s GMV of $24.44 billion.

This indicates that the Instacart platform is a strong player in the selling of branded consumer packaged goods (CPG). It will generate 20% of online grocery sales in the USA in the next 4 years. Importantly, the American platform will concentrate on offering better products, implementing growth-oriented marketing campaigns, and reducing delivery fees to defeat its competitors.

How does an Instacart Clone App use Artificial Intelligence (AI)?

An app like Instacart handles several thousands of grocery orders every day from customers. It collects all the data (amounting to petabytes) of the users. Further, advanced mathematical algorithms help in predicting the average time a product sits on the shelf of a grocery store, the duration for shoppers to find a parking spot outside a supermarket, and the nature of products that will be demanded by customers.

Artificial Intelligence (AI) assists the Instacart platform to categorize each customer based on their interests, likes, and preferences. It quantifies this data in terms of discount percentage, inventory levels, order value, price, and size. The decision-making power of AI improves by sending personalized recommendations and suggestions to customers.

Finally, an Instacart clone app increases the customer’s acceptance of substitute products in case their originally demanded grocery items are out of stock. Eventually, this leads to a better shopping experience due to a higher level of accuracy in understanding the user’s mindset.

Wrapping Up

Undoubtedly, Instacart has truly changed the way of online grocery shopping in the North American market. Moreover, it has benefited all the important stakeholders (customers, delivery executives, and sellers).

Importantly, the Instacart platform will undergo a transformation in the future as it will use robots for delivery instead of executives. This will be a big test of how the American platform uses technology to revolutionize the e-grocery industry. Hence, entrepreneurs can take their digital grocery ordering and delivery business to the next level. They should begin Instacart clone app development in partnership with an experienced app development company.