Technology continues to surprise people in different ways with its immense potential. It is playing a big role in the global retail industry. Today, we have automated tools for order processing, payment execution, and dispatch of deliveries.
How to Create a Grocery Delivery App like Instacart
With an App like Instacart, you get at the forefront of online grocery ordering and delivery in countries like the USA and Canada. It has strong coverage across a whopping 5500 cities. It has a value of $39 billion now. The platform has truly earned the name of an online grocery giant. Furthermore, Instacart has acquired multiple small and large-scale grocery chains recently.
Despite heavy competition from Amazon, DoorDash, Target, and Walmart, Instacart has been the undisputed leader. It is also going for an Initial Public Offering (IPO) to strengthen its business.
Entrepreneurs who wish to capture a strong position in the on-demand e-grocery industry can do it successfully by creating an Instacart clone app in partnership with a reputed app development company. They will provide user-friendly Android and iOS apps for shoppers, delivery executives, retail store managers, and a robust admin panel.
Understanding the business model of the Grocery Delivery App
- Instacart Express membership – It is available as monthly and yearly subscription plans for the customers. The Instacart Express membership gives free home delivery of groceries, lower product prices, and access to exclusive deals, and the launch of new products.
- Instacart Ads – It offered targeted advertising for partner retailers to increase their sales on an app like Instacart. The benefits include better reach to the customers, enhanced chances of scalability, and increased brand awareness. Moreover, grocery retailers get real-time updates about the effectiveness of their promotional campaigns across different channels.
- Instacart Enterprise – Instacart Enterprise offers physical grocery store owners to enhance their business. They can list thousands of products for sale on a digital platform. Besides that, it covers support for loyalty programs, real-time logistics management, self-checkout, online catalog management, and couponing.
- Instacart Credit cards – JP Morgan Chase provides this exclusive Instacart brand-powered credit card for customers. This facilitates grocery retailers to retain new customers easily. Hence, the shoppers can also earn cashback regularly on their purchases.
- Delivery fees – It is imposed for same-day order fulfillment, one-hour deliveries, and club store deliveries. The rates vary accordingly depending on the distance covered by the delivery executive and the value of the order.
- Listing charges – You can impose listing fees from the retailers for listing their products on the online platform. The grocery sellers incur more expenses to showcase new products and get a position at the top of the marketplace.
How entrepreneurs benefit by developing an Instacart Clone App?
- The American online grocery delivery market will cross a mind-boggling value of $59.5 billion by 2023. The market share of online grocery sales will rise to 21.5% by 2025. Likewise, with immense growth potential in this thriving industry, entrepreneurs can earn hefty profits quickly.
- Due to the severity of the Covid-19 pandemic, shoppers have started giving more priority to health and safety. Hence, it is risky to visit provision stores and supermarkets now. Huge sales can be generated by owners of an online grocery delivery app like Instacart by targeting different sections like college students, homemakers, senior citizens, and working professionals.
- Equally important, the entrepreneurs get a consistent flow of revenue by reducing the costs of products through a dynamic pricing model. It depends on the extent of market demand and supply.
- Customers receive groceries quickly—a huge fleet of independent contractors working full-time and part-time covers every location in the target market effectively.
Key factors to take into account before Developing an App like Instacart
- Finalizing the operational scope of the grocery delivery app. The entrepreneur can initially launch the services in a few cities and then expand it to the whole country.
- Deciding the platform for launch (Android, iOS, and Web).
- Partnering with different small and large-scale retailers covering every grocery product.
- Complying with the California Consumer Privacy Act guidelines and the General Data Protection Regulation, and other national laws.
- Opening large warehouses and micro fulfillment centers (MFCs) can efficiently handle a huge volume of orders.
- Integrating real-time supply chain management and inventory control tools to avoid under-stock situations.
- Ensuring adequate disclosure of information related to ingredients, expiry date, manufacturing date, and price.
- Offering 24×7 customer support services in numerous languages via chat, email, and phone.
- Maintaining a good relationship with the delivery personnel by offering them an adequate salary, comfortable working conditions, and performance-based incentives.
- Including data analytical tools to predict customer behavior in the future. It will also help to time for order processing, payment collection, and delivery fulfillment.
The must-have features to include while creating an app like Instacart
- Live tracking of orders – by customers via GPS integration. This ensures efficient management of their schedules as the shoppers will know the estimated time of arrival (ETA) of the delivery executive beforehand.
- Acceptance of multiple payment methods – such as debit cards, credit cards, net banking, Apple Pay, Google Pay, and UnionPay. Therefore, fund settlement is speedy.
- Offering attractive discounts, offers, and coupons – to attract shoppers to buy groceries regularly on an app like Instacart.
- An integrated feedback system – where customers can share their opinion and views about the quality of the groceries and the professionalism of the delivery executives.
- A dedicated help center – to resolve the complaints and grievances of the users.
- An in-store pickup option – where shoppers can visit nearby retail stores for picking up their grocery orders anytime.
- Route optimization mechanism for the delivery executives – Customers receive groceries speedily as the delivery personnel uses the inbuilt route navigation option to reach the correct destination quickly.
- Access to analytical reports for the admin – The admin can view valuable information about revenue, cash flow, costs, and profits earned over a month or year. They can make better decisions by accessing other data like average order processing time, daily active users, and monthly active users, number of canceled orders, overall customer rating, and transaction processing speed.
The technological advancements that entrepreneurs should consider during the development of an Instacart Clone App are
- Data Analytics – It involves collecting all information related to customers, storing it securely, and analyzing it in the form of charts and graphs to get interesting insights. Entrepreneurs can utilize data to enhance order processing efficiency, reduce delivery time, and improve the effectiveness of digital marketing campaigns.
- Augmented Reality (AR) – It assures an immersive shopping experience. Shoppers can get information about nutrition and price by viewing the products through engaging videos.
- The usage of drones and robots – Drones and robots powered by automated software can be a game-changer in fulfilling on-demand grocery deliveries. Robots can also be utilized in distribution centers and warehouses to clean, dispatch orders, and scan different items.
- The implementation of Machine Learning (ML) – ML can accurately detect when customers try to steal products and place them in their bags and pockets. The admin receives alerts when shoplifting incidents occur in the stores.
- Blockchain technology – Online grocery ordering and delivery apps like Instacart process humongous amounts of data. The admin can keep information safe by storing them on immutable blockchain networks. Additionally, they can also verify the data stored anytime through the distributed ledger, ensuring a high level of transparency.
Online grocery delivery platforms are a big rage in the current world due to the trend of instant gratification — and maybe just because we really need these services at present with how busy we are. Entrepreneurs can achieve success in any market they venture into with Instacart clone app development.
Extensive usage of technology and effective adaptation to different changes in the industry have been the main reasons behind the achievements of Instacart. With more people owning smartphones and getting access to economic mobile data plans, they will prefer utilizing a well-organized app like Instacart and order their products quickly than making long visits to grocery stores.
Fintech Kennek raises $12.5M seed round to digitize lending
London-based fintech startup Kennek has raised $12.5 million in seed funding to expand its lending operating system.
According to an Oct. 10 tech.eu report, the round was led by HV Capital and included participation from Dutch Founders Fund, AlbionVC, FFVC, Plug & Play Ventures, and Syndicate One. Kennek offers software-as-a-service tools to help non-bank lenders streamline their operations using open banking, open finance, and payments.
The platform aims to automate time-consuming manual tasks and consolidate fragmented data to simplify lending. Xavier De Pauw, founder of Kennek said:
“Until kennek, lenders had to devote countless hours to menial operational tasks and deal with jumbled and hard-coded data – which makes every other part of lending a headache. As former lenders ourselves, we lived and breathed these frustrations, and built kennek to make them a thing of the past.”
The company said the latest funding round was oversubscribed and closed quickly despite the challenging fundraising environment. The new capital will be used to expand Kennek’s engineering team and strengthen its market position in the UK while exploring expansion into other European markets. Barbod Namini, Partner at lead investor HV Capital, commented on the investment:
“Kennek has developed an ambitious and genuinely unique proposition which we think can be the foundation of the entire alternative lending space. […] It is a complicated market and a solution that brings together all information and stakeholders onto a single platform is highly compelling for both lenders & the ecosystem as a whole.”
The fintech lending space has grown rapidly in recent years, but many lenders still rely on legacy systems and manual processes that limit efficiency and scalability. Kennek aims to leverage open banking and data integration to provide lenders with a more streamlined, automated lending experience.
The seed funding will allow the London-based startup to continue developing its platform and expanding its team to meet demand from non-bank lenders looking to digitize operations. Kennek’s focus on the UK and Europe also comes amid rising adoption of open banking and open finance in the regions.
Featured Image Credit: Photo from Kennek.io; Thank you!
Fortune 500’s race for generative AI breakthroughs
As excitement around generative AI grows, Fortune 500 companies, including Goldman Sachs, are carefully examining the possible applications of this technology. A recent survey of U.S. executives indicated that 60% believe generative AI will substantially impact their businesses in the long term. However, they anticipate a one to two-year timeframe before implementing their initial solutions. This optimism stems from the potential of generative AI to revolutionize various aspects of businesses, from enhancing customer experiences to optimizing internal processes. In the short term, companies will likely focus on pilot projects and experimentation, gradually integrating generative AI into their operations as they witness its positive influence on efficiency and profitability.
Goldman Sachs’ Cautious Approach to Implementing Generative AI
In a recent interview, Goldman Sachs CIO Marco Argenti revealed that the firm has not yet implemented any generative AI use cases. Instead, the company focuses on experimentation and setting high standards before adopting the technology. Argenti recognized the desire for outcomes in areas like developer and operational efficiency but emphasized ensuring precision before putting experimental AI use cases into production.
According to Argenti, striking the right balance between driving innovation and maintaining accuracy is crucial for successfully integrating generative AI within the firm. Goldman Sachs intends to continue exploring this emerging technology’s potential benefits and applications while diligently assessing risks to ensure it meets the company’s stringent quality standards.
One possible application for Goldman Sachs is in software development, where the company has observed a 20-40% productivity increase during its trials. The goal is for 1,000 developers to utilize generative AI tools by year’s end. However, Argenti emphasized that a well-defined expectation of return on investment is necessary before fully integrating generative AI into production.
To achieve this, the company plans to implement a systematic and strategic approach to adopting generative AI, ensuring that it complements and enhances the skills of its developers. Additionally, Goldman Sachs intends to evaluate the long-term impact of generative AI on their software development processes and the overall quality of the applications being developed.
Goldman Sachs’ approach to AI implementation goes beyond merely executing models. The firm has created a platform encompassing technical, legal, and compliance assessments to filter out improper content and keep track of all interactions. This comprehensive system ensures seamless integration of artificial intelligence in operations while adhering to regulatory standards and maintaining client confidentiality. Moreover, the platform continuously improves and adapts its algorithms, allowing Goldman Sachs to stay at the forefront of technology and offer its clients the most efficient and secure services.
Featured Image Credit: Photo by Google DeepMind; Pexels; Thank you!
UK seizes web3 opportunity simplifying crypto regulations
As Web3 companies increasingly consider leaving the United States due to regulatory ambiguity, the United Kingdom must simplify its cryptocurrency regulations to attract these businesses. The conservative think tank Policy Exchange recently released a report detailing ten suggestions for improving Web3 regulation in the country. Among the recommendations are reducing liability for token holders in decentralized autonomous organizations (DAOs) and encouraging the Financial Conduct Authority (FCA) to adopt alternative Know Your Customer (KYC) methodologies, such as digital identities and blockchain analytics tools. These suggestions aim to position the UK as a hub for Web3 innovation and attract blockchain-based businesses looking for a more conducive regulatory environment.
Streamlining Cryptocurrency Regulations for Innovation
To make it easier for emerging Web3 companies to navigate existing legal frameworks and contribute to the UK’s digital economy growth, the government must streamline cryptocurrency regulations and adopt forward-looking approaches. By making the regulatory landscape clear and straightforward, the UK can create an environment that fosters innovation, growth, and competitiveness in the global fintech industry.
The Policy Exchange report also recommends not weakening self-hosted wallets or treating proof-of-stake (PoS) services as financial services. This approach aims to protect the fundamental principles of decentralization and user autonomy while strongly emphasizing security and regulatory compliance. By doing so, the UK can nurture an environment that encourages innovation and the continued growth of blockchain technology.
Despite recent strict measures by UK authorities, such as His Majesty’s Treasury and the FCA, toward the digital assets sector, the proposed changes in the Policy Exchange report strive to make the UK a more attractive location for Web3 enterprises. By adopting these suggestions, the UK can demonstrate its commitment to fostering innovation in the rapidly evolving blockchain and cryptocurrency industries while ensuring a robust and transparent regulatory environment.
The ongoing uncertainty surrounding cryptocurrency regulations in various countries has prompted Web3 companies to explore alternative jurisdictions with more precise legal frameworks. As the United States grapples with regulatory ambiguity, the United Kingdom can position itself as a hub for Web3 innovation by simplifying and streamlining its cryptocurrency regulations.
Featured Image Credit: Photo by Jonathan Borba; Pexels; Thank you!