In the last blog, we discussed how Coronavirus had created an impact on the on-demand industry. While some categories have dipped, others like grocery, food delivery, and healthcare are performing well. Taking this ahead, we will discuss the on-demand grocery app in detail and what businesses can learn from the current situation.
Scope of Grocery Apps in the On-Demand Industry:
The on-demand industry has gained so much traction in the past few years. Moreover, On-demand grocery apps have emerged as one of the best options to get the grocery delivered online. Online Grocery App Market is expected to reach +55% CAGR during the forecast period 2020-2026 as per openpr. This is itself sufficient to tell that there has been a tremendous opportunity for growth in on-demand grocery app. The evolution of on-demand grocery has taken over brick-and-mortar retail not just in developed countries but also in developing countries.
Online grocery stores have become “on the moving thing.” It becomes quite easy for the end-users to shop on the go. Hence, for better engagement and user satisfaction, an online grocery store or on-demand grocery delivery app is need of an hour.
Some of the factors like rapid urbanization and high population density are making Uber grocery delivery app an economically viable option, and hence it is quite popular among masses.
Coronavirus Outbreak: Does it make any Change?
As the COVID-19 pandemic has spread across the USA, grocery delivery apps have experienced vast numbers of downloads daily, as per the new data from app store intelligence firm Apptopia. Instacart, Walmart Grocery, and Shift saw growth of 218%, 160% and 124% average daily downloads over the previous month. Allegedly this past Sunday was a record for each app. An outbreak of Coronavirus is prompting Americans to buy their groceries online, a development that could have a lasting impact on the supermarket industry. The reason behind this is that consumers don’t want to come outside and contact the people. They want to maintain social distancing, but “there is still a need to bring supplies and groceries during intense social disturbances.”
Drivers behind the Sudden Increase in Demand for Grocery Apps:
Groceries are something which is one of the essential parts of everyone’s day to day life. For that, they can, of course, go to the supermarket. But, looking towards the risk, that is, created due to COVID-19, people these days are moving towards ordering online groceries. However, in the case of COVID-19, when people are sitting at home and are quarantined, the on-demand mobile app will serve with all the essential things people are looking for sitting at their home.
With the Corona outbreak, anxiety has been spread out about the pandemic, and citizens across all countries are not going to public places and opting for the online food and delivery services to shop. Though not all countries are lockdown or quarantined, there is a chance when you need to shut your shop and stay indoors for some days or weeks as a precautionary measure. Due to more and more people are shutting their shops, and people are working from home, the demand for on-demand grocery apps have got a sudden increase.
Thus, safety, comfort, and convenience are significant drivers of a sudden trend. As Doug Baker, VP-Industry Relations, FMI, A Trade Group for Food Retailers, puts, “Consumer behaviors always shift in times of disaster. People are learning new skills and how to shop online as a result of what we’re experiencing today.”
How are Grocers responding in the New Scenario?
As cases of Coronavirus are increasing in the US and citizens are advised to take precautions in their daily interactions with others to prevent the spread of the disease, grocers attempted to make their policies for deliveries and employees keeping in mind the risk of COVID-19.
Coming to the Asian Market, supermarket chain like iFresh has made a crucial move to stand itself as an innovator at the time of COVID-19 outbreak. An agreement has been made to acquire a 70% equity interest in DL Medical Technology Company Limited, specializing in technology, manufacture, and manufacture of medical and non-medical protective masks and other related items.
Grocers are adopting unique ways to meet the needs of supplies in their area. Apps like Instacart and Doordash are taking the help of Uber and Lyft drivers to deliver orders to home raised through mobile apps. Officials reveal that there has been a tenfold increase in download numbers since the Covid-19 outbreak.
Another name in the list, Shipt, the same-day delivery marketplace, today announced the company would add additional Shipt Shoppers in Texas, including Austin, Dallas, Houston, and San Antonio, to serve customers during a time of increased demand as the COVID-19 situation evolves.
Apart from this, grocers are spending more time in cleaning stores; commonly used areas include more frequent cleaning and cleaning shelves for virus-free delivery. They are also asking their customers to purchase only essential products and not to hoard the products so that everyone can find the products which they require.
Future Implications for the Businesses:
In the US, the grocery industry has been in the rapid race ever since Amazon has purchased Whole Foods, showcasing just how serious they are in achieving more prominent footing in this sector. Walmart is planning to offer grocery delivery from 1600 locations by the end of 2020. It will outsource the drivers from providers like DoorDash, Deliv, and Roadie for helping them meet those goals and approach new markets.
But, with the sudden corona outbreak, there has been a massive instability across the globe. Almost all industries are struggling as the entire focus is on removing or coping up from this pandemic. Nobody is expecting stability or normalcy at least for a year or two. In these tough times, too, the on-demand grocery business is booming, so enterprises need to take this as an opportunity to upscale their business offering level.
The current trend will make people play safe and rely more on on-demand grocery apps even after the virus will be curbed. Businesses must seize the opportunity and invest in grocery apps to deliver quality food at peoples’ doorstep.
As said, necessity is the mother of invention. This is the period of need. If you launch a grocery app now, you can not only earn revenue but also lend a helping hand when millions of people are locked down globally.
We offer readymade grocery mobile app solutions that can be deployed within a week with necessary customization to resonate with local requirements.
Can you see a silver lining?
Tune in to read more about the development of on-demand grocery apps in our next blog in the series.