Grocery App Development Costs: Key Factors and Budget Planning Guide

Imagine the happiness and smile on your customer’s face when they receive their grocery orders in an hour or 10 minutes. A few taps on their phone and their products are at their doorstep without them having to step out.

It is true that grocery apps are transforming the delivery segment by offering your customers comfortable shopping experiences. No wonder Statista claims that this industry is all set to reach $1347 billion by 2029. If you want to make a grand entry into this segment, you may need to think fast and work on your idea.

Grocery delivery is not just about convenience; it is also about your users getting their ingredients while they are half way through cooking. With advancements in technology, recommendations on the best products and other insights are also available, which make your user’s life easier.

While you are listing out your purpose for grocery app development and the features you wish to include, you should also give the cost of development some thought.

The costs vary depending on what you are building, a simple applicaiton with basic features or something more advanced for the users. This article will take you through the factors that influence the cost of development and how you can ensure reducing unnecessary expenditure.

Factors Impacting Grocery App Development Cost

When you sit to calculate the average cost to develop a grocery app, you need to continuously monitor crucial factors. They could be the platform you have selected to build the app or the logical complexity involved. Here we will discuss the top factors influencing the grocery app development cost.

#1. App Complexity

If you are developing a logically complex application, it will cost you more. The grocery app cost depends on the logic and its complexity. If you are planning basic screens with a simple journey, you will enjoy an affordable app development.

As the features increase, and the journey grows complex, you can begin increasing the zeroes in your budget. Building an MVP is slightly less expensive when compared to developing a high-end application. As the user journey grows complex and the number of pages increases, you need to add more experts to your team. It will also impact the dollars you are spending on development.

#2. The Platform Selection

When you are considering the factors that influences the cost of application develoment, you cannot ignore platform selection. What platform you select will help you define the budget for the grocery application.

For instance, native approaches will cost you more when compared with the cross-platform approach. Even when you are thinking native-only, you must choose between iOs and Android for development.

So, why is platform selection important and how does it influence the cost? An iOS-only application requires Swift experts who can translate your app vision to reality. However, in this case you will be adding more resources and getting limited reach.

On the other hand, Android apps have a better reach but, device fragmentation can require more resources, which again impacts your cost estimates.

You will benefit from the broad reach and cost effectiveness that cross-platform development approach offers. However, your team may not be able to deliver the native-like feel or aesthetics with these frameworks.

#3. UI/UX Design

UI/UX design is an important factor that influences the budget of the app development. You can get a clear roadmap for the functionality and features of the application with the design.

The design maps out the features you will be adding into the application and the type of logic you are planning. As a result, you are able to tighten the app scope and ensure you remain well wihtin your app budget.

Prototypes and wireframes can help you detect the flaws in the design and identify the challenges your designers are likely to face. By eliminating the risks in the designs, you can reduce the rework in your development process.

A clea er UI/UX design helps your team allocate the resources wisely and manage the costs. ou can even ensure the product meets the end user’s needs and increase the user adoption.

#4. Third-Party Integrations

When you want to extend your app’s functionality, there are two ways to get it done. You can either use the existing apps/APIs or you can build the entire feature from scratch. If you go with the latter approach, you need to invest in a lot of customizations that add to the cost of development.

Third-party integrations are affordable if you are on a tight budget or need to extend functionality without increasing the budget. Make sure to have defined workflows and user journeys planned before you begin integrating apps or APIs.

#5. Security and Compliance

When you are working on a grocery application, you are working with a lot of data. Most of it is sensitive data, as it involves the user’s address, payment details and their name. You might need to enhance your security to ensure the user feels safe sharing their details.

By investing in robust security measures like data protection and encryption, you can ensure that the user’s information is secure while accessing your app. To manage the high-end security measures, you need specialized people and their skills.

It is equally crucial to understand the compliances involved in your niche to ensure standard development practices and quality products.

#6. Backend Development

Backend development can increase or reduce your app development budget. In this case, your resources are responsible for the server setup and management of increased data volume. The cost of backend depends on the database management solution you choose, your platform and the other technologies you are likely to use.

An increase in the backend complexity can also lead to increased expenses for your IT department. Apart from investing in backend development, you will need to plan its maintenance as well.

It is crucial to think through all these aspects before you commit to the cost of development.

#7. Location of Developer

The location of the developer is an important element of grocery app development costs. If the developer is from a high-end location, where the hourly rates are high, the overall cost of development will go up.

On the contrary, if the location is where hourly rates are low, the cost of development goes down. You will notice that the cost of development is directly proportional to the location of the developer, their living costs and the hourly rates.

Average Cost to Build a Grocery Application

The average cost to build a grocery app is anywhere between $15000 to $400,000. Here is a detailed cost breakdown based on the complexity type, platform and app type.

#1. App Cost by Complexity

The basic functional app is when you have added simple features to your application. This would include the sign in feature, adding groceries and selecting the address. This application will cost you somewhere between $20,000 to $40,000.

The mid-level application is where the app includes features like real-time tracking, payment gateways and others. This app costs $40,000 to $80,000. The cost depends on the features you wish to include.

Advanced application is when you use latest technologies, such as AI to include newer and capable features. This can increase the cost. The overall price depends on the type of technology and its expertise cost. It starts from $80,000 and can go up to $400k.

#2. App Cost By Platform

The cost of development differs for the iOS and Android platforms. iOS has specific design guidelines and best practices, which requires an expert’s intervention. You may need to spend anywhere between $30k to $50k to get a basic iOS application.

The basic Android app will cost you $30k to $50k. The cost of Android app depends on the fragmentation, resources you are hiring and the expertise you need.

The initial cost of developing a cross-platform app is higher than native applications. They cost somewhere between $50k to $90k to get started.

#3. App Cost By Type

There are three types of grocery delivery application, the customer app, the admin app and the delivery application. The customer app costs anywhere between $20,000 and $50,000. The customer app comes with features like product browsing and cart management.

The admin app costs somewhere between $10k and $30k. The app contains features using which the store owners can manage inventory and order and streamline their supply chain.

The delivery application costs somewhere between $15k and $40k. the features included are GPS tracking, order status updates and others that help the delivery person in smooth deliveries.

Custom App Development Cost and Benefits

Custom app development is when you use tailored specifications provided by the business to create the mobile application. Using the business needs and client specifications, you can create a solution specifically aligned with the business goals.

• These apps are tailored to meet the exact requirements of your business to deliver the experience they recognize.
• It is easier to scale the custom solutions, so you can ensure an app that evolves with the user base and business growth. Adding new features and functionality to the custom app doesn’t need significant changes.
• It is easier to integrate the applications with third-party tools and technologies. You can easily integrate your grocery app with CRM and ERP for efficient operations.
• Custom apps are developed from scratch, it is easier to implement strong security solutions. You can implement the features that makes the grocery application stronger and relevant for the business.
• With custom apps, you gain a competitive edge over others in the market.

Factors Impacting Custom App Development

Here are all the factors that impact custom app development cost.

#1. App Complexity

The features included in an application can impact the cost of the custom application. If you are planning an MVP with basic features, it will cost less. However, if you are planning a full-fledged application with AI recommendation systems and multiple access levels, you might notice a rise in the development cost.

#2. Platform Selection

Selecting the platform is an important part of custom app development cost. If you are developing for a single platform using native approaches, it can cost you less. However, if you plan native approach for multiple platforms, the resource cost goes up.

You can plan a more cost-effective development using a cross-platform approach for development. It is important to select the platform/s before you begin planning the budget.

#3. UI/UX Design

A strong focus on UI/UX design can help build an intuitive and accessible application for the users. You can include the design specifications that are unique to your brand and its users. This would need experts with a strong focus on UI and UX design. You may need to spend more in this case, as expert designers come at an exclusive cost.

#4. Backend Infrastructure

Backend infrastructure can influence the cost of developing a custom application. If you are planning a strong and complex backend, you might need to spend more. However, if you are looking for minimal backend solutions, you can spend a lot less and get a reliable solution.

#5. Developer Location

The hourly rates for app developers depends on the developer’s location. if they belong to places like North America or Western Europe the rates are high. However, the developers from countries like East Europe and India may not charge a lot.

#6. Maintenance and Support

If you have taken the maintenance and support package, the developers would offer continuous updates and relevant solutions to ensure your app stays relevant. This comes at a defining cost.

Talent Acquisition Costs for Grocery Apps

Hiring a dedicated development team is crucial if you want to get a streamlined application for the business. The dedicated developer will focus on the design and development of your application. They will also handle the maintenance and regular updates for the solution.

With a dedicated team, you will notice that the app development is more cost-effective and allows you more control over the project in the longer run.

Factors Impacting the Cost of Hiring Developer

Here are all the factors that impact the cost of hiring a dedicated developer or team for the business.

#1. Experience Level

You will need to pay the hourly rates for the developer based on their experience level. The junior developer will cost less as they are involved with basic app development tasks. They will be responsible for low-level jobs, which don’t increase the overall cost of hiring.

The mid-level developer has about 2 to 5 years of experience and can handle complex app development tasks. The senior development team with over 5 years of experience can manage complex tasks and ensure experiential solutions.

#2. Location of Developer

The cost of developer depends on the location. The higher cost depends on the demand and cost of living of the developer in the location. The developers in North American and Western European developers are in high demand and their living cost are higher. However, the cost of hiring developers in Eastern Europe and South Asia are affordable and deliver high-quality.

#3. Tech Stack

When you hire developers with specific expertise in technologies like Swift and Kotlin, the cost of development is high. They command high salaries and the developers may be in high demand.

#4. Engagement Model

The engagement models, such as freelancer, in-house team and remote developer, are renowned in grocery app development. Each model impacts the cost of development. There are pros and cons with each development model.

Estimated Cost of Hiring Dedicated Developer

If you are hiring a junior developer in North America or WEstern Europe, the cost is $60k to $90k per year. A junior developer will cost you anywhere between $20k and $40k in east Europe or Asia.

A mid-level developer costs about $90k in North America and $40k in Asia or East Europe. The senior developer will cost anywhere between $120k to $150k per year in North America and $70k to $100k per year in Asia or EAstern Europe.

If you are choosing the freelancer model, the hourly rates are different:

Junior Developer $15 to $50 per hour.

Mid-level Developer $50 to $100 per hour.

Senior Developer $100 to $150 per hour.

Development Team Structure and Costs

When you set to hire a team for grocery app development, you need to fill in multiple roles. Each of these team members is crucial in adding value to the application. They collaborate to build a high-quality application.

Let’s look at the development team structure and their role.

Development Team Structure

The development team that is responsible for building a reliable grocery app comprises of several members.

1. Project Manager: They oversee the project, and are responsible for timely communication. They coordinate with the team and ensure that the milestones are met on time.
2. UI/UX Designer: They focus on creating a thriving user experience and interface design to ensure the app is intuitive and user-friendly.
3. Backend Developer: They create the server-side logic and manage the database development. They are also involved in planning and executing the integrations.
4. Frontend Developer: These developers will create the user-facing mobile application. They will translate the mobile designs into a coded and logical structure that the user can use.
5. Quality Assurance Engineer: They test the app for bugs, and conduct a detailed test to check the units and functionality of the application.
6. DevOps Engineer: They specialize in hosting, deployment and continuous app integration.

Region-wise Hourly Rates

Estimated Cost of Full Grocery App Development

The complete development timeline for a medium complexity grocery application is about 1000 to 1500 hours. Here is a cost estimate for each region.

• North America: $430k to $1320k
• Western Europe: $390k to $1065k
• Eastern Europe: $215k to $570k
• Asia: $145k to $405k
• Latin America: $185k to $645k

Grocery App Development Cost Estimator

A grocery app development cost estimator is a tool you can use to calculate the estimated cost of developing your vision. You can use it to check how much it will cost to develop a web or mobile application. You can check the cost against the parameters, such as complexity, features and platform.

Here’s how the cost calculator works:

1. Select the features that you desire to visualize in your application. For instance, you want social media sign-in, product catalog view, shopping cart and payments features in your application. The cost of adding a single feature can impact the cost.
2. Select the platform you want to develop the application for. You can go with native as well as cross-platform selection.
3. The hiring factors influence the hire app developer cost majorly. Add the development team you wish to hire and the region.
4. In case you wish to hire resources for the maintenance, you should make the relevant choices.

once you input your choices, the estimator will give out the total approximate cost of developing your application.

Top 3 Cost Estimators

1. Estimate My App: This is a renowned application that estimates the development cost using the app's features and complexity. You get a detailed high-level breakdown of the costs, which will help understand where your money will be spent.
2. Cleveroad App: A customized calculator, it derives estimates using the app type, industry and platform. You can customize the features, play around the app complexity and get immediate estimates.
3. BuildFire: This is a user-friendly tool developed for estimating costs for wide range of niches. It is the best fit for beginners who need rough cost estimates.

Why You Should Use a Cost Estimator?

Here are all the reasons to use the app development cost calculator to get an approximate cost for developing grocery application.

1. It offers a quick estimate into the business plan for the grocery application, allowing businesses to plan their budgets effectively.
2. You can tweak the app features and get an immediate understanding of how they impact the costs.
3. It improves the real-time decision abilities of the businesses, whether they want to hire, scale or add features to the application.

Conclusion

When you are entering the retail marketplace with the grocery application, you should understand the cost of development. It can help you prioritize the features, plan phase-wise development and ensure smooth deployment.

There are several factors impacting the cost of development, such as app complexity, platform choice or developer location. You must understand the different factors, and how they will influence the overall cost.

With this understanding, you can create strategies for cross-platform development or minimum viable products. You can also decide if you want to outsource the entire project or approach cost-effective regions for specific solutions. This understanding will help you balance feature requirements with your budget.

FAQs

#1. How much does it cost to build a grocery delivery app like Instacart?

The cost of building a grocery delivery app like Instacart is anywhere between $30,000 to $150,000. The cost depends on the features you wish to add and the overall complexity.

#2. How long does it take to develop a grocery delivery app?

The total time taken to develop an application is anywhere between 3 to 9 months. The timeline varies and depends on the scope and customizations you need.

#3. What features are included in the vendor portal?

The vendor panel in a grocery app includes the features such as product management, order tracking, analytics and payments.

#4. What are the hourly app development rates in various countries?

The hourly app development rates vary according to the developer’s location. It is $30 to $50 per hour in Eastern Europe. The hourly rate in India is $15 to $40 and $100 to $150 in the US.

Jignen Pandya

Vice President at Expert App Devs

Responsible for creating a sales funnel, attracting top-of-the-funnel customers, and converting the target market.