What are the market prospects of on-demand grocery delivery apps?

Updated On: August 24, 2022

Updated By: AppsRhino


One significant effect of the pandemic outbreak and lockdowns is that it has forced people to stay indoors due to the fear of getting infected with the virus. It has negatively affected the business environment across the globe. But the demand for necessary items like groceries and medicines remains the same. Many companies and start-ups have sprung up to take this business forward via online platforms to cater to the massive demand in the sector

The on-demand grocery delivery apps have helped both customers and businesses to sail through these difficult times. The pandemic has altered and transformed the behavior and needs of the customers. The number of searches to buy products online has dramatically increased, indicating their rising customer preference. 

According to a report by Apptopia, Instacart, Walmart Grocery, and Shipt have seen a daily download search of 218%, 160%, and 124%, respectively. This data gives an idea about the kind of demand and boom that the on-demand food delivery market is witnessing.

People prefer to buy groceries online than physically visiting the stores and waiting in long queues. This has reduced logistics costs and has saved customers time, money, and effort. The daily user rate of customers using on-demand grocery delivery apps has also gone up. Now the question is, why are grocery delivery apps becoming so popular, and what attracts customers to them?


During the pandemic, strict lockdowns, mobility restrictions, and social distancing norms made it difficult for consumers to move out of their homes. They were forced to purchase groceries and other essential items online. Customers had to shift to online portals to buy their products and cope with the new environment. In the process, on-demand grocery delivery apps flourished and took over the grocery market.

These grocery delivery apps come with many features and functions that make them easily accessible. Notifications, live tracking, and product details include their most common and popular features. These increase the market prospects of the on-demand grocery delivery apps. Also, the article takes you through some strategies which will help in planning and designing your app better. To know more, read the article further.

Features of on-demand grocery delivery apps


Following features are essential and present in any on-demand grocery delivery apps,

Profile authentication

It is a feature where customers already use the app can sign up, and new customers can log in to the app by entering their emails and phone numbers. It, in turn, generates a password, after which customers can easily access the app. 


Notifications are sent to customers on specific actions. Some of these notifications are about the launch of new products, about offers and discounts. The messages also notify customers about upcoming sales. 

Product listing

This tab lists down all the products that are available on the app. The products are categorized based on brands, categories, subcategories, stores, physical features and appearances, and prices. Based on location, customers can also view best-selling or recently launched products. 

Product details 

This feature contains the names of the products, product variants, brand, category, description, and product price. Customers can order multiple products from this tab across different stores and not have to run across numerous tabs and stores to place their orders. Here customers can add, remove, add to their wishlist and put their products in the cart whenever they want. 



It displays all the products finalized by the customers for purchase. The cart feature also allows customers to change the quantity of the products, add or remove products and make other changes in the product before proceeding further. 


Customers can apply coupons to avail offers and get the products at discounted rates. This feature attracts many customers to the app as they are tempted by the recommendations and buy more products at lower prices. 


This option is the final step of purchasing a product. The payment gateway is where the customer selects the mode of payment and finishes the ordering of the product. Customers are given the flexibility of choosing either debit/credit/online/cash payments.


This feature gives the customer choices to get their product delivered at their convenience. The customers can either pick up their products from the store or deliver them to their homes. In getting the products delivered, the customer can select the time and date of delivery. 

Order management 

All the current and previous orders details are displayed under this option. The customers can easily view their order history, track their recent orders, cancel their orders, and reorder from the select orders list. 

Store information 


Customers can select this feature to take a tour of the store. They can view banners and store offers. Customers can also mark their favourite stores and visit them more frequently. 


Customers can subscribe to products on a daily/weekly/monthly basis using this option. It automatically notifies the store about customer preferences. As marked by the customers, the products are directly delivered by the store at these intervals. This way, customers will not have to place the same order now and then, and the store would be aware of the products that have to be essential; delivered to the customers. 

Challenges faced during the pandemic 


Groceries are an essential need of the people, and during the pandemic, users suffered as they could not move out of their homes. Purchasing groceries became a luxury. Consumers face challenges daily to get a regular supply of necessities like groceries and medicines. In avoiding physical contact and maintaining social distancing, customers preferred staying at home and ordering groceries online. However, the grocery delivery market also faced several issues due to transportation curbs during the pandemic. Some of these challenges include-

  1. Lack in the management of supply chain
  2. Limited workforce
  3. Delayed deliveries 
  4. Changes in behaviour and demand of customers

Strategies to create successful grocery delivery apps


To compete in the market and stay ahead, grocery delivery apps need to create a strategy to help them flourish. They must readily help the people fulfill their needs and requirements of groceries anytime and anywhere without any fuss. Some techniques that the grocery delivery apps can apply to boost their sales and market presence are: 

  1. Provide all essential features of grocery delivery in the app. This will enable customers to access the website and help them navigate better easily. It makes the app more user-friendly and helps customers fully enjoy the benefits. Features like product descriptions, cart, and live tracking are all very beneficial and help in the growth and development of the app. 
  2. To reach out to more customers, the app must know the preferences and needs of its audience. The app must be accessible and easy to use. It should have an interface that can deal with a large audience quickly and efficiently. 
  3. In today’s technology and social media age, it is an urgent requirement to launch the app and advertise it on social media platforms. It will help accumulate more audience and extend its reach to a wide range of audiences. 
  4. Apps need to launch frequent offers, discounts, vouchers, and gifts to lure customers. It will also help your app to stay ahead of its rivals and attract customers. 
  5. One of the most critical and defining strategies to build a successful on-demand grocery delivery app is to ensure quick and cheap delivery of products. The app must ensure total hygiene while delivering the products. It will also help the app gain customer trust and loyalty. 

Future of grocery delivery apps



An important thing to keep in mind while creating a grocery delivery app is to estimate the cost of developing an app depending on the requirements, features, functionalities, and customization. If you plan to start your grocery delivery app, then hire a team of developers who will create the right solution for you. They will provide you with the best experience and expertise. Building unique solutions, engaging portfolios, using the latest technology, and driving better perks in the future are the perks of hiring app developers.


The on-demand grocery delivery apps are slowly becoming popular, gaining hold of the market. They served as a cushion to fall back on during the coronavirus outbreak when the markets were shut and mobility hampered. It also helped people in maintaining social distancing and at the same time get their demand for groceries fulfilled with the help of grocery delivery apps. 

The on-demand grocery delivery market is spurring fast. It is bringing a new trend in the future of online shopping. The time is ripe now to take advantage of the moment to build your business and reach out to more customers. Get started with building your on-demand grocery delivery app today!

With AppsRhino you can create your own on-demand grocery app with all the essential features, complete customisation and within your budget. 

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