The Instacart app has garnered a loyal customer base because of the kind of convenience it brought to the market. In today’s blog post we will try to enumerate by eliciting examples of how the Instacart clone app itself earns money. And then trying to see how you can adapt its business model to grow your own on demand grocery delivery business.
But before we get into that, it is important to understand that just because Instacart itself earns through multiple channels that have proven to be effective for it does not mean that the same system will work for you. You have to take into account the fact that it took years for Instacart to establish itself and you are essentially using its business flow and app model to replicate the success for your own business.
Now, having said that, we will try to put into context the fact that for your region or the region where you plan to launch the app, you might be the first of your kind or competing against an already set system.
This is why; we would suggest that you don’t start off by levying charges across the spectrum and start slow. The first thing that we will address through this blog post is to understand how Instacart makes money. Then we will move on to understanding the most efficient channel for you to do the same but in a consistent and incremental manner.
So, let us get started.
THE INSTACART APP REFERENCED INCOME MODEL
The Instacart app has been around for a while now. While it too started small it has come to a point where it has become easy for it to levy multiple charges through various means across the app. There are a few ways in which the existing Instacart app makes money. They are:
- CONVEYANCE CHARGE: Each solicitation or order dealt with by Instacart more than $35 attracts a standard conveyance charge of $3.99 for 2-hour conveyance. Likewise, they have set rules and prices as an hour based tariff for grocery items delivery within the app. Therefore, when a user orders a particular bunch of items, the app makes money.
- PARTICIPATION FEE: Customers are given the choice to join the “Instacart Express”. This can be done with an enrolment fee set at $99 each year. The enrolments benefit the clients with free delivery within a certain radius for a year, and clients can likewise profit by accessing discounts and recover coupons. Needless to say, the app owner makes money each time a user signs up as a member for this system.
- MARK UP COSTS OR SURGED CHARGES: Some stores sell items on Instacart with a raise of 15% on each item listed in their virtual store. Instacart gathers the additional income, and the stores procure extra money gained from the sale of each thing requested by means of Instacart.
ADAPTING YOUR OWN BUSINESS BASED ON THE INSTACART CLONE APP
As mentioned above, it is pertinent to realise that just because the primary Instacart app uses these methodologies to garner and foster additional income does not mean that this will be a successful story for you as well. It is very important as a new business owner to understand the pulse of the market where you plan to launch your app in so that you can make the most out of it.
Following are some of the ways in which you can make money from your own Instacart clone app:
- COMMISSION FROM EACH SALE: the app that you launch as the face of your business is essentially a service that you offer to the local grocery stores and super markets in your region. This is why; instead of levying costs on the user, make sure that you charge a commission per order to these stores. This would ensure that regardless of what the order value is or the distance people have to go to deliver it, each time there is an order placed through your app, you stand to make a handsome commission on it. You can set the percentage of commission using the app’s admin panel. This commission percentage can be changed or updated from time to time based on your popularity and the current market trends.
- ADVERTISEMENTS ON LADING PAGES OF THE APP: you can utilise the various landing pages of the app and various spots such as banner space and headers across your app and the website to allow grocery stores and super markets to place their own adverts on it. This would allow them to market their own store efficiently while getting you some additional money towards advertising and marketing.
- INCORPORATING FACEBOOK ADS AND GOOGLE ADS: you may also use Google Ads and Facebook ads to get additional income on the app. this would mean that you provide space over your app and website to allow Google and Facebook to place their ads on it. By doing this, you will essentially ensure that your service is free for the users so that more and more number of people download your app and start ordering from it.
GET YOUR OWN INSTACART CLONE APP
To be successful in today’s market in the on demand grocery delivery industry, it is very important that you digitize your business practice. Make sure that you purchase a white label on demand Instacart Clone App so that it can be launched with your logo and brand name on the Google Play store and the iOS app store under your server credentials.
Make sure that you test your app thoroughly before you invest in it. It is also always advisable to discuss at length with the app development team regarding any and all custom requirements that you may have.