The rise of e-commerce has completely transformed the way businesses work. With outstanding growth in e-consumerism, industries have started to adopt this culture and have been growing steadily. 

Every business wants to make its online presence, towards which the global audience has been moving. Mobile applications are also a helping hand in this context. If we talk about firms like Uber, Zomato, Swiggy, and OYO, they offer particular services that make these apps more convenient and prominent choices for users. Also, several factors make mobile applications a priority for businesses. 

Presently, businesses have mobile applications that enable their users to get almost every service at their doorstep. There are endless applications to order food, book a taxi, and hotel service, but apps like Grofers are still less in competition. Therefore, if you already have a grocery store or want to start a new one, building an app like Grofers can be an idea of the gold standard for your business. 

Grofers-like apps are a prime choice for those who want to eat healthily but don’t have the time to visit the market. In this scenario, if you build an app like Grofers, you can bring the market to them and generate a lot in terms of revenue.  

In this article, we will be discussing the Grofers business model, how it works and makes money, and how you can build an app like Grofers. So, let us begin;

Grofers Business Model & Its Main Components 

If you want to make an app like Grofers, it is essential to understand Grofers’ business model. Grofers is an on-demand grocery delivery service. Moreover, it has transformed its business model over the years. Earlier, the company used to follow a hyper-local delivery service model, but now, it has shifted to an inventory-based delivery model. Moreover, the lower middle class and the middle class are now the target audience of Grofers’s business model. 

Here are the main components of Grofer’s business model:

The Inventory

Instead of depending upon the unreliable service from the local retailers, Grofers decided to take on the procurement and storage responsibilities to deliver the goods to the users at a more consistent rate. 

It means now the company is going to get the product from various brands and local businesses. Next, that product would go into Grofers’s inventories for further action. 

Now, the company showcases its private-label brands on the products. Also, it features local brands at sensible prices for its new customer base. Moreover, Grofers has a proper QR Code to scan and track the products. It monitors every aspect of the products from the number of items to the expiration date. This is how the company has maintained itself in the ranks of best online delivery operations in India.


The modifications in the Grofers business model have also helped the company concentrate on a specific segment of the audience. Grofers has manoeuvred itself into a position that makes it a prime choice for its target audience (lower middle class and middle class). Moreover, the company aims to be an online D-mart for its users. 

The new business model of Grofers has also experienced more involvement from women, which was missing in the old business model of Grofer. However, cash on delivery orders is more from women as compared to men, which shows that women are still testing the feasibility of on-demand grocery delivery services. 

Delivery Personnel 

Still, delivery personnel is the building block of Grofer’s business model. Also, the Grofers delivery model plays a vital role in the whole process. Grofers has its own delivery staff, who delivers the orders to the customer’s doorstep. Moreover, the business model has handsome salary offerings for delivery personnel. Along with this, Grofers also provides other benefits to its drivers, such as goodies for freshers, an open-door policy, complimentary evening snacks, and much more. 

How Does Grofers Business Model Works?

Previously, Grofers used to follow the hyper-local design. In the previous model, Grofers had to be dependent on the local grocery stores for stock availability. That’s why deliveries were always unpredictable. All this impacts customer engagement; as a result, it declined a lot with time.

With the revolution of Grofer’s business model, its working process has also changed. Earlier, where the orders came from the local stores, but now this is not the case. With Grofers’s inventory-based model, the orders come from Grofers’s inventory stores. 

First of all, the users place the order from the Grofers app or website. Then, the order goes to the warehouse, where the employees locate, check, pack, and prepare the items for delivery. 

Next, the delivery executives collect the order from the warehouse. After that, the delivery executive delivers the order to the customers. So, this is how the Grofers inventory-based business model works. 

 How Grofers Make Money?

As you know that Grofers provides services to its users through its inventory-based model. The process involves logistics, delivery partners, technology partners, merchant partners, strategic & alliance partners, suppliers, and vendors. But, the question is – how does Grofers make money?

The company procures various times such as fresh produce, pet care products, bakery products, meats, flowers, sports products, household products, baby care products, and others from numerous merchants and vendors. 

Next, these items are sent to the Grofers warehouse for storage. In this way, Grofers has more control over the quality of the items. Also, the company can manage the efficiency of the overall process. 

Therefore, when any of the users place an order, Grofers uses its delivery support for the delivery and connects with numerous brands and local merchants with a substantial customer base. In return, charges a commission from them on every order. 

Merchants pay Grofers a commission of 8% on orders below INR 500-700 and 12% to 15% on orders between INR 700-1000. On the other hand, the delivery is free if the order cost is more than INR 250. Else, the customers have to pay a delivery fee of INR 49.00. 

Why Do You Need To Build An On-Demand Grocery Delivery App

At this point in time, building an app like Grofers can be a profitable decision for your business. Want to know why? Here are the reasons:

  • First of all, there are not that many on-demand grocery delivery apps in the market. Also, on-demand delivery service apps are booming. Hence, it is the right time to invest in something like this. Take advantage of this opportunity, and launch your user-friendly on-demand grocery delivery app like Grofers. 
  • On the flip side, if you are a store owner, building an app like Grofers can get more exposure to your business. Also, you can generate more revenue by offering marketing and exclusive deals to various merchants, along with reaching out to your customer base. 

So, if you are interested and want to build an app like Grofers, don’t forget to discuss your project with the best mobile app development company in the USA. At Decoro Software Solutions our team of professionals will not only guide you on the deep insights of mobile app development but also suggest business and revenue models.

How To Build An On-Demand Grocery Delivery App

The Business Model 

Most importantly, you need to figure out an exclusive business model for your business. Remember, the roots of the success of your business depend on its business model. There are numerous options in this regard, and to find out which one is a perfect fit for you, you need to analyze the market you want to enter. 

Next, you need to figure out your customer base. Once you finalized your customer base, pick a business model that matches your geolocation, market scene, and customer base. Moreover, you can choose from the marketplace, aggregator model, grocery chains, and single-store model. 

Note: If you have any doubts regarding the Grofers clone app business model, feel free to reach  Decoro Software Solutions in order to discuss your project with industry specialists. 

Figure Out The App

Before you proceed, it would be great to survey the ongoing grocery delivery apps in your area. After that, you need to review the features and functionality of the competitor apps in order to find out the loopholes of your competitors. Once you are done with the research and review part, try to provide your target audience with the best version of a grocery delivery app. 

Furthermore, you can also take an idea of how your on-demand grocery delivery app like Grofers is going to look like. Apart from this, based on your business model, you can start working on the features of the different panels, such as the customer panel, merchant panel, admin panel, and grocery store owner panel. 

Note: If you are confused about the features, take suggestions from the Mobile App Development Services in USA. Book a free demo now!

Developing The App

Once you are done with all the aforementioned tasks, find the best mobile app development company in the USA to get a free consultation with the experts. When you share your business model and all the related stuff with them, you will get to know a number of things that can help your grocery delivery app succeed. Also, they will suggest what to do and what not to do. Then, you can make changes in your Grofers-like the app business model to increase the chances of its success. 

Furthermore, you can also discuss the other aspects of your Grofers-like the app, such as the user interface, customer panel, vendor panel, admin panel, and store owner panel. Along with this, you will also get constructive feedback on features, development technology, UI/UX design, and much more. So what are you waiting for now? Book a free consultation now!

Technology Stack For An App Like Grofers

If we talk about the technology stack to build an on-demand grocery delivery app like Grofers, the below-given tech combination works well:

  • Application & Data: Python, Node.JS, NGINX, Java, Postgresql, MongoDB, Angular JS, Redis, Django, Flask, Objective-C, Scala
  • DevOps: GitHub, Docker, New Relic, Ansible, Sentry, Logstash, Crashlytics
  • Utilities: Elasticsearch
  • Business Tools: Slack

Grofers Clone App Cost 

The cost of building an app like Grofers depends on several things. Before we give you an idea about the general price for building an app like Grofers, let us discuss the factors that affect the cost:

  • First of all, the design of your app and how it looks can affect the cost to develop an app like Grofers. Overall, the UI/UX of your app plays a significant role in the cost to develop an app like Grofers. 
  • Secondly, the code structure of your app also determines its cost. 
  • Next, the features that you include in your on-demand grocery delivery app like Grofers. 
  • The mobile app development services that you choose to build an app like Grofers. You may find cheap mobile app development companies, but remember, quality comes first. 
  • Last but not the least, the platform for which you are building an app like Grofers also determines the cost.

The cost to build an app as Grofers starts from $XXXX USD. Remember, the cost to build an app like Grofers depends upon the above-mentioned aspects. 

Note: There are numerous factors on which the cost to make an app as Grofers depends. If you want to get a clear estimation to make an app new cost, you can contact Decoro Software Solutions- the best mobile app development company in the USA. 

Final Takeaways 

In this era of technology, the rise of e-commerce apps is at its peak. So, if you are looking to build an on-demand grocery delivery app like Grofers, this is the right time to take the right step.

All you need to do is just find the best mobile app development company in the USA. 

At Decoro Software Solutions, our experienced developers can help you build an app like Grofers with a blend of advanced features and the latest technology. Book a free consultation now!