Know About Recent Innovations In Grocery Delivery Business - Moon Technolabs

Are you thinking about shifting your offline grocery business online? Are you going to start your business venture only after you get a grocery delivery mobile app created? Regardless of what you choose to do, you must first gather as much information as possible about the latest innovations in this particular line of business.

The sphere of online grocery purchases is bringing in more customers with every passing day. According to market researchers, the worldwide market of online grocery would continue to grow between 2020 and 2025 at a CAGR value of 23.7%.

Another group of researchers suggests that the e-commerce business of groceries would reach $250 billion, and it wouldn’t take longer than five years. Undoubtedly, this information will get the attention of numerous entrepreneurs and existing business owners attempting to gain a foothold in the online grocery market.

The objective of this write-up is to help you, and everyone else planning to start an online grocery business, understand the latest trends and new innovations in this particular field.

The biggest players

It doesn’t matter whether you have something new to offer or not – you have to know about the most recognized brands that already have a firm grip on the market of online groceries first.

Even if you have an idea none of these businesses could come up with, you have to study what they did when they started their companies.

The image below contains the information you require.

Top Market Players of Online Grocery Business

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Things to consider

Focusing on the following factors will ensure you can start your business of online grocery delivery and operate successfully for years to come.

  • You should begin by choosing an appropriate business model for selling groceries online. You should also try to improve the business model of your choice if you deem it necessary.
  • Next, you have to create a roadmap that’ll aid you in transforming your business model into something efficient, precise, and agile.
  • The following step incorporates determining your target market.
  • You also have to segregate the regions where you’ll deliver your products and where you won’t.
  • You mustn’t forget to analyze your competitors to find out what they do to stay ahead. If you aren’t doing something, you have to learn why they don’t do it, and whether you’ll benefit from doing what they aren’t.
  • Finally, you’ll need a website. If possible, you should also pay the grocery app development cost to get a mobile application created for your business.

While all these factors are crucial in one way or another, most business owners and entrepreneurs end up wasting more resources and time than necessary in picking a business model.

To make things a bit easier for you, this topic elucidates the business models followed by some of the most popular names in the sphere of online grocery delivery.

The business models


You’re probably familiar with the name of Instacart – one of the most prominent companies in the arena of online grocery delivery. The selling point of Instacart is its ability to deliver products to customers rapidly.

As it’s a hyperlocal grocery delivery company, Instacart brings customers close to personal shoppers in charge of facilitating doorstep delivery. Instacart follows a three-tier business strategy where customers buy grocery products via the app of the company.


FreshDirect is yet another brand that didn’t hesitate to pay the grocery app development cost and look where the company is right now. It follows an inventory-based business model with which it delivers fresh grocery products to its buyers.

The items reach the buyers in refrigerated trucks. Other than the customers, the suppliers of FreshDirect are one of the main partners of the brand.


If you keep tabs on the online grocery businesses in the USA, then you should be familiar with the name Peapod. It’s one of the first online grocery businesses that began operating on American soil.

Multi-vendor - Moon Technolabs

The company sticks to a hybridized approach. Just like Instacart, it’s a service provider. Conversely, it also operates as a web-based supermarket. Peapod prefers the multi-vendor business model. While it fulfills most of the orders received from customers via its warehouses, it also works with grocery stores to provide groceries.


By bringing digital and physical storefronts under one roof, Walmart offers consumers channel-based engagement depending on what they prefer. Walmart follows an omnichannel model of business.

Customers get served by the website of the company, in-store interactions, and, of course, its mobile application. The most essential resources of Walmart include e-commerce platforms, physical stores, mobile app, storage and distribution centers, and human resources.

The primary activity of this company is to purchase and deliver products. It controls all the expenses associated with the transactions. Additionally, Walmart pays for inventory control, distribution management, and customer service.

Sources of revenue

Before you choose to shell out the grocery app development cost, you should take a look at how you can generate revenue.

Commission against transactions

As the administrator, you can charge a specific sum of money as a commission against every transaction completed by the seller.

Vendor subscription

In this strategy, a vendor has to provide a predetermined sum of money to you – the admin. In doing so, they get the chance to enlist their business to your online grocery platform. You can offer several subscription plans to the vendor. Based on the vendor’s requirements, you can also enhance or demote the plan.

Commission against delivery

The admin can choose to charge a predetermined sum of money as the delivery fee from the purchaser, as well as the person in charge of delivering the goods, against every transaction.


Here are a few other revenue streams for you to explore.

  • Promote grocery sellers or merchants on site.
  • Host banner advertisements.
  • Sell data gathered from users to market research organizations.
  • Create a page for blogging and circulate sponsored content through it.
  • Offer useful takeaway merchandise, such as storage jars and reusable carry bags. These things will bolster your branding attempts, too.

The trends

At the moment, the market value of the worldwide grocery retail industry is about $5.9 trillion. Naturally, it shouldn’t come as a surprise to anyone if they see tech giants trying to penetrate this industry and trying to grab their slice of such a profoundly profitable pie.

New technological innovations are helping brick-and-mortar establishments enhance customer experiences while selling more, streamlining in-store visits, and delivering targeted marketing campaigns.

The digital revolution brought forth by mobile devices, mobile apps, and the internet has turned the sphere of retail as supermarkets strive to search for ways to generate brand loyalty and bring new customers through the front gate.

So, if you’re going to hire a prominent grocery app development company, such as Moon Technolabs, to create an app like Shipt, Beelivery, Big Basket, Grofers, you must take a look at the latest innovations in grocery delivery.

Mobile apps for promotion

There was a time when customers had to resort to flicking through the pages of catalogs and retail circulars to learn about the newest deals and bargains. The smartphone revolution has introduced new avenues for grocery dealers and retailers to build loyalty for their respective brands using coupon-based applications.

Customers always love getting discounts on products from their favorite brands. That’s why retailers try to reduce prices in a bid to attract customers and even encourage them to return.

With every passing day, more and more customers are visiting new stores. They’re also experimenting with product alternatives that they wouldn’t purchase in normal circumstances. As a result, maintaining loyalty has become a challenge. One study conducted recently proved that about 84% of all buyers get influenced by coupons.

Mobile apps for promotion - Moon Technolabs

Conversely, 86% of all those buyers stated that they’ll readily try new products if they receive coupons. Mobile apps provide brands with another touchpoint to place specific products directly under the noses of customers and utilize loyalty data to develop a more personalized experience for the shoppers.

Researchers believe that about 63% of all customers will happily download the loyalty app of a retailer if he/she receives discounts and promotions in return.

Many retailers, such as Coles and Walmart from Australia and the USA respectively, recently began integrating their payment wallets into their mobile applications. Customers will be able to enjoy the convenience of budgeting for their grocery requirements in one place.

On the other hand, retailers can use the same platform to gather data and monitor how their customers spend money on their products. One study estimates the worth of the market of mobile payments at $870 million. They expect this value to increase to $27.7 billion within the next six years.

Being able to offer promotions associated with store credits and track customer expenses will help you bolster brand loyalty and even encourage buyers to return for more.


Not many people can imagine how blockchain has anything to do with grocery retail, but every grocery app development company with a thorough understanding of blockchain believes otherwise.

Blockchain originally came into existence to provide support to the ecosystem of cryptocurrencies, but it has the ability to offer exciting opportunities to grocery businesses.

Blockchain can help business owners in multiple ways, such as enhancing your quality control measures, streamlining the supply chains, and even reducing wastage of food. The most important feature of blockchain, however, is to increase the security of the records of grocery products.

It even allows retailers to sell the freshest, safest, and most affordable merchandise. In other words, blockchain can help your business earn the trust of your buyers. This system helps in making the journey of farm-fresh products to the dining table of a buyer as smooth as possible.

  1. By using blockchain technology, you can accumulate real-time data that will help you in spotting all the inefficiencies lurking within your supply chain and identify the areas where you can reduce expenses.
  2. Unlike humans, the incredibly secure system of blockchain doesn’t make mistakes.
  3. Blockchain makes you confident when dealing with suppliers because it doesn’t allow them to cut corners.
  4. Researchers say that almost 45% of the vegetable and fruit crops end up in waste bins every year. By incorporating blockchain, you identify the source of this waste and even increase the reliability of audits.

Experts predicted that by 2025, around 20% of all the supermarkets spread throughout the world will utilize the power of blockchain to reduce food wastage as much as possible. They’ll also use it to ascertain food safety and enhance traceability.


The experience of a buyer will reach an entirely new level due to the changes in technological advancements. After all, they’re going to change how customers interact with a product, whether inside a store or at home.

IoT or the Internet of Things connects multiple digital devices with each other and collects massive volumes of information. For instance, an IoT-connected refrigerator can gather data, apart from sending and receiving the same.

IoT can prove to be exceptionally beneficial to grocery businesses. You can use it to set up shelving units that’ll monitor your inventory automatically or help you pinpoint the geolocation of customers if you choose to create an app like Shipt, Beelivery, Big Basket, Grofers with the help of a grocery app development company.

About 5 years ago, the worldwide market value of the Internet of Things was about $16 billion. Market researchers believe that it’ll grow at a rate of 21.5% with every passing year from now till 2025.

Robots inside the store

It may sound too far-fetched, but the truth will remain unchanged – robots are rapidly becoming part of grocery stores across the world. They check the inventory, decide product discounts, clean up spills, and whatnot.

Panasonic recently went into partnership with a Japanese grocer called Lawson to inspect its latest bot-based, cutting-edge check-out system. Instead of relying on the staff members working with the store, retailers can delegate Reji Robo to do everything.

This cutting-edge technology synchronizes digital shopping carts with barcode readers to scan items automatically before dropping them inside a pre-prepared bag.

Robots inside the store - Moon Technolabs

Another company called Brain Corp has designed a robotic assistant that goes by Marty. It has been helping customers and employees in more than 500 different stores spread throughout the Netherlands.

This robot utilizes technologically enhanced sensors to keep tabs on spillages, answer customer queries, and make announcements for the staff members. Most grocery retailers need more time to leverage the power of in-store robots, but some of them have already invested heavily in computer science and artificial intelligence.

Juniper Research claims that these business owners have already spent around $3.6 billion in AI.

Also Read: Top 10 Fresh Grocery Delivery Apps In The USA

Scan & Go

Here’s another tech trend in the online grocery industry that seems as futuristic as using robots within the store – Scan & Go. As you can probably guess from the name, it’s all about self-service and check-outs.

The system of Scan & Go eliminates the steps associated with checking out from the store. If you create an app like Shipt, Beelivery, Big Basket, Grofers and invest in Scan & Go systems, you can help your customers finish purchasing what they need faster. It’ll be helpful to those who lead extremely busy lives.


With technological advancements reimagining the things experienced by buyers inside a store or a mobile app, entrepreneurs and existing business owners with a stake in the grocery industry now have several opportunities to explore.

Food safety, personalized promotions, waste reduction, smart shelving, and check-out process streamlining are just a few ways technologies are helping retailers gain new customers while building loyalty in the hearts and minds of the same for their respective brands.

In such a situation, conventional grocery businesses have to fight just to maintain their relevance. They must invest in the appropriate technologies to stand up to the threats posed by the biggest tech businesses of this world.

Frequently Asked Questions

Yes, if you wish to establish a strong foothold in the sphere of online grocery delivery, an app will prove to be the most important tool.
Yes, an app can help your business follow these tech trends. In fact, an app can help you incorporate these tech trends with ease.
Moon Technolabs is one of the best agencies out there at the moment with in-depth expertise in grocery delivery app development projects.

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Jayanti Katariya

At the core, Moon Technolabs is driven by the vision, sharpness and flourished under the leadership quality led by none other than the founder & CEO i.e, Mr. Jayanti Katariya. His simple-approach & never-give-up attitude is the virtue or rather aptitude that the entire team tries to grasp and follow. From client relations to business development, from industry updates to floor walking, he does everything in his power to provide support to the team.

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