We all know what a marketplace is, and for those who don’t, a marketplace is a platform that connects the sellers with buyers, customers with service providers etc. While this concept of the marketplace has been around for a while, it was never successful and this scenario was prior to the entry of smartphones. Basically, a marketplace is, what e-commerce is to product industry or Uber to the service industry.
So the question arises, what benefits do marketplaces get in encouraging the trade between the two entities of a supply chain? All things considered, there are many: they get much better traffic on their websites, they can make a profit with web ads and they can simply take a cut whenever a trade is completed on their platform. Let us consider on-demand delivery apps as a fast-paced marketplace.
Market Growth of Grocery Apps in the US
Grocery mobile app giants like Instacart, Grofers and Bigbasket have already left all their competitors spellbound, henceforth there is nothing wrong in saying that the future of the grocery delivery mobile apps will keep on blooming in the upcoming years.
Contemplating delivery apps in on-demand economy
Let’s take a scenario of Uber, Uber has extended their services to UberEATS for food delivery, Ubersitter for babysitting, TaskRabbit for scheduling household tasks etc. If you examine the service models of Uber, It isn't just about what and where. There are many vital perspectives to it, the most vital is when. If the babysitter comes after several days, there is no point of calling them at all. That is, I need a plumber within 30 minutes at my office or I don't, there is no use if we can’t avail the required service in the needed hour. This is the main purpose why quick delivery of people and things is so critical in an on-demand economy.
Another angle is how. How happy are your clients with the services? Doesn't Uber request you to rate its service on a scale of 1-5 each time you take a ride?
What does it take—on-demand grocery delivery?
For quick provisioning of requested person or thing, you should depend on nearby suppliers and service providers. If there is any need for grocery delivery, you need to make a deal with various supermarket owners in every territory in your service region. You can approach them for a discount over price or commission over client's purchase amount.
Likewise, you need to locate a delivery agency or you could form your own delivery service that would deliver the product to the customer’s location. In case, you are opting for a delivery agency, they could charge a fixed rate for every delivery or a minor share of the bill amount. To settle the charges of delivery agency, you can add delivery charges to a user’s bill.
Key features of an on-demand grocery delivery app
While the majority of them possess the same features as on some other on-demand applications, there are few things that are composite to on-demand grocery apps. Like every other on demand apps where the user has to specify Who, What and where.
Types of grocery apps in the market
In case you're thinking of an on-demand grocery delivery app for the today’s tech savvy customers, you have numerous choices. Let us take a look at the most common type of grocery delivery apps from the following list.
Aggregators is the one who lists the local grocery stores nearby the user based on their location. The user can choose one of the close-by grocery store available on the app. From the online menu, you can include whatever you need in any amount to the cart. You can check out of the cart, make payment with the payment gateway integrated with the app, and wait for the store to affirm the order. Once your order is confirmed, you can track your order progressively until you reach your place. The liability to deliver the order lies exclusively with the store proprietor, aggregator just lists the store and its menu on its platform.
A marketplace grocery store shares the same qualities of a grocery store aggregation platform, with the exception that the marketplace has its own group of delivery services to convey the ordered grocery to the clients home.
In a single store application, the grocery store owner commission his own branded app and deals with everything from maintaining the application and keeping an updated online menu to deliver the order to a customer and collect money.
Grocery chains, for instance, Walmart has a plan to have their own particular on-demand mobility solution, which will similar to a single store at micro level operations.
Which is the best for you?
However, that depends, while aggregator platform are likely to have lesser risks and are risk free endeavors. The main hardship you have to face will be the negative impact on your brand value if a listed grocery owner declines to deliver or is being impolite to a user on your platform
So every type has its own piece of advantages and disadvantages. While marketplaces are the best option to maintain the brand reputation, the risk are also too many. Obviously, the favorable position is this that you have full control from taking orders to delivering products and collecting cash and users doesn’t need to be in touch with the actual provider. Contact our team of experts to know which type beest suits your business model.