“GrubMarket is on a mission to digitally transform the entire American food supply industry.”
It was founded in 2014 as a food tech company in the US and Canada. It aims to provide services to customers and businesses with SaaS solutions to transform digitally throughout the food supply industry.
GrubMarket is a local food delivery service to cities like Arizona, California, Connecticut, Georgia, Michigan, New York, New Jersey, Missouri, Nevada, Massachusetts, Oregon, Pennsylvania, Texas, Washington, and Canada, and also plans to expand to the rest of the cities.
When consumers are conscious about their food order, from where it has grown and preserved, GrubMarket comes to their rescue with the best grocery store business plan.
GrubMarket provides fresh and healthy food accessible to people easily. You must have noticed labels on the foods like peaches from China, mango from India, and strawberries from France. GrubMarket’s business model is a farm-to-table delivery that minimizes the distance groceries travel.
Let us now learn everything about GrubMarket- a well-known wholesale food market.
What is GrubMarket?
The food delivery service offers two business models, one is B2B2C, and another one is B2B. If you love to eat or supply fresh food directly from the farmer’s place, GrubMarket is for you.
Did you know?
GrubMarket is the largest mushroom supplier in Northern California and the biggest supplier of Hawaiian farms in the Bay area.
The GrubMarket app is standalone that allows the wholesalers and distributors to provide their customers a new digital, modern experience that differentiates from other groceries/food delivery apps.
Do you want to know what makes GrubMarket stand out in the market? Well, it is the business model that has increased the sales and revenue each year. Let us give you a detailed description of how much is GrubMarket worth and the business model that it follows.
GrubMarket Business Model
“Mike Xu, the founder and CEO of GrubMarket, works on a hybrid model offering organic food delivery to businesses and a burgeoning consumer-based eCommerce platform where consumers can buy food from local food suppliers.”
The growing farm-to-table delivery business is trending in the market to make it convenient for consumers to buy food from local farms.
We all know that consumers are prone to eating organic food. GrubMarket has found the pain point of the consumers and offers what they need via mobile application.
Here’s what GrubMarket business provides:
- Fresh and organic food
- Supports local farmers
- Cheaper than local vendors
- Hassle-free order and delivery
So, what’s next? What makes GrubMarket earn more value from other competitors? Let’s delve into it.
Unique Approach to Increase GrubMarket Revenue
GrubMarket believes in the approach that allows them to pick and deliver food from local producers and farmers. GrubMarket entered the food industry when people barely knew this concept of the food-to-table. They targeted high-income people to give a fair opportunity to the farmers, and it stood out from the other competitors in the food delivery industry.
This app allows its partners to efficiently use the digital platform to manage logistics and AI to offer the consumers the best online grocery shopping experience.
As per a study, the farmers receive less than half of the amount for every dollar spent on buying food items. Therefore, GrubMarket revenue bags more profit for farmers by delivering directly to the buyers than selling to the third-party vendors.
Like other delivery apps, GrubMarket does not offer same-day delivery, typically taking 1-3 days for farm-to-table delivery. The other reason GrubMarket leads the market is that it does not spend much on marketing as customer retention is low through advertisements.
That’s how the GrubMarket business model gains huge profit and success. Our blog on the food delivery business model will help you with different approaches to starting an on-demand delivery business.
If you want to know how to build your business with a farm-to-table delivery app, read below.
How Does GrubMarket App Work?
The cycle starts when a customer orders on the GrubMarket app or website. Since this app does not deliver on the same day, a few products have a waiting time, which is conveyed to the customer.
Once the transaction is completed, the order reaches the vendor. Notification to the admin with the estimated date. As the admin assigns a driver, he goes to the farm and loads the items in his bag. In the meantime, real-time notification is sent to the admin and the customer. A later delivery confirmation text is sent to the admin and the customer to ensure that the number of items ordered is delivered at the right place.
How To Build an App like GrubMarket?
To build an app there’s a series of steps to be followed. From ideation to assessing the requirements, creating a design of the app, creating a MVP, testing, to final deployment, each step takes its own time and cost.
To develop a farm-to-table delivery app like GrubMarket, you need different apps to manage the entire business process seamlessly. Check out how a food delivery app is divided into separate applications.
User App
- Registration
A user can register as a producer or buyer of a food item. Easy sign up by filling in basic information or logging in with social media accounts.
- Easy search
The apps should always have an easy search option for local food products. The users can view products based on category, reviews, locations, pickup time, etc. For example, a user can check bread items under the food and grain category.
- Calendar
This feature will enable the user to check the events by farmers or any other brewery events. Users can also sign up for custom notifications and receive community event reminders.
- Scheduling
Users can specify the date and time they need the food delivered to the given address.
- Real-time tracking
Once an order is placed, this feature helps the users track the driver’s movement and their shipping status.
- Re-purchase
The next time users want to buy food, they can re-order the previous item from the list of orders feature.
- Add address
Users can add multiple delivery addresses and select them while placing the order.
- Feedback
Customers need to provide feedback, reviews, and ratings on orders and experiences they had while ordering and delivering.
- Customer service
Customers can contact the support team anytime for any fruit or vegetable delivery service.
Driver App
- Profile management
The delivery boys can maintain their profile with email IDs, contact details, photos, etc.
- Status notification
Drivers can receive new order status and updates from the order processing to the finish.
- GPS tracking
Tracking the real-time path of the customer’s delivery point through GPS.
- Order reports
Store owners can get real-time tracking of their business and order items.
Admin App
- Staff management
Admin can easily maintain records of drivers, users, and businesses.
- Listing
The app allows them to add new items or change the price listing per the current market.
- Tracking
This feature of tracking drivers’ live location can help in timely delivery, increasing transparency and reducing the problem of delayed food delivery.
- Customer management
Admin can view the customer’s data and their orders from their profile.
- Notifications
Admin can send real-time notifications for promotional discounts, coupons, special offers, etc., to retain past customers.
- Payment gateway
This app allows ease of payment via multiple options with in-app integrated gateways like debit/credit card, net banking, PayPal, bitcoins, etc.
- Reminders
This feature is to send a reminder to the admin on the delivery of the orders in time.
- Analytics
In-app data integrates analytics such as reports, customers’ daily orders, sales, and expenses, to take business decisions accordingly.
Producer App
- Profile
The sources are allowed to develop their profile to showcase the items they offer and upload pictures and a short bio. They can also add their address and schedule pickup times.
- Product list with cost
This feature allows vendors to add, update, and remove items from the store. The vendors easily change the price or categories as per the availability.
- Analytics
A graph on the dashboard can help the sources manage business operations efficiently.
- Stock management
Track your inventory efficiently with the sales and expenses to satisfy customer demands as it helps prevent going out of stock
- Track payments
Adding business payment details and tracking customer payments becomes seamless.
- Order reports
Get real-time information about the business performance to make necessary changes and wise decisions.
Now that you have studied the different panels of GrubMarket let us give you the approximate cost to build an app like GrubMarket.
GrubMarket App- Cost to Build a Similar App
Have you ever wondered what the costs could be to develop an app like GrubMarket? With all the features and functionalities mentioned above, it takes time to create a robust mobile application for any business. With aPurple, you will get end-to-end solutions and also post-app development maintenance support.
There’s a team of experts ready to discuss and decide the type of application you need- a native or hybrid app, a software solution- a custom-based model or ready-made clone apps. Let us give you an approximate price range for developing each app classified in the blog above.
| Mobile Application | Price in Dollars |
| Backend Development | $12,000 |
| Android App Development | $14,000 |
| iOS App Development | $15,000 |
| Producer App (Android) | $10,000 |
| Producer App (iOS) | $10,000 |
Conclusion
How much is GrubMarket worth?
“GrubMarket’s CEO- Mike Xu claims that the business is valued at more than $1.2 billion.”
To reach this value or beyond, your farm-to-table business will need an app that helps the customers, producers, and drivers to stay in the loop and perform efficiently. Apart from these features that each panel holds, play-store and app store registration, update and maintenance, marketing strategies, etc., will significantly impact the budget.
With aPurple, you can get an innovative platform that connects the farmers with the customers without disrupting the third-party vendors. It is a great opportunity for farmers to connect with the audience to a larger extent.
