When the global pandemic turned the world upside down and pushed people to stay indoors, the demand for on-demand grocery expedited like never before.
At that time, many retailers managed to keep pace with this significant transition in consumer spending behavior and many new players emerged to take advantage of this opportunity.
A recent study highlighted that the U.S. online grocery market was projected to generate sales of around $95.8 billion in 2020 and would hit $188.7 billion by 2024.
For those planning to enter this booming industry, here’s a list of the top 5 best online grocery delivery apps in the USA that are ruling the market. Read on to get into the details of these apps as per their Crunchbase’s profile.
Top 5 Best Online Grocery Delivery Apps In The USA
Our list of online grocery delivery apps in the USA includes those apps that have made ordering and getting groceries at doorsteps an easy walk for people.
We’ll help you explore some of the key details about these apps such as the total funding amount they have received till now, the number of lead investors, revenue, valuation, and among others.
Let’s now cut to the chase and take a peek at the top 5 best grocery shopping and delivery apps in the USA.
1. Instacart
Instacart is an on-demand pickup and grocery delivery platform that provides same-day doorstep deliveries of groceries in major regions of the USA. It connects retailers and stores with customers via personal shoppers who pick and fulfill the order.
As of 2020, Instacart reported to clock around 9.6 million active users and 500,000+ shoppers for order fulfilment.
- Founded: 2012
- Founders: Apoorva Mehta, Max Mullen & Brandon Leonardo
- Headquarters: San Francisco, California, U.S.
- Total Funding Amount: $2.9B (Over 20 Rounds)
- No. of Lead Investors: 13
- Revenue: $2B of 2017 (As per Forbes findings)
- Valuation: $39B as of 2021
- Area Served: Nationwide
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2.Gopuff
Besides delivering the order at doorsteps, Instacart even allows customers to pick up their pre-made orders from a local store.
Gopuff is one of the most popular on-demand delivery apps for every immediate daily need from groceries to late-night snacks and household goods.
How it is different from others is the fact that it maintains over 500 micro-fulfilment centers in more than 1,000 regions including the U.S. to facilitate the delivery in minutes. It is also known as one of the biggest on-demand delivery platforms in the United States due to its extremely fast delivery as compared to other players in the same space.
- Founded: 2013
- Founders: Rafael Ilishayev & Yakir Gola
- Headquarters: Philadelphia, Pennsylvania, US
- Total Funding Amount: $3.4B (Over 9 Rounds)
- No. of Lead Investors: 4
- Revenue: $1B (As per a recent study)
- Valuation: $15B (as of 2021)
- Area Served: 650+ cities in the United States
3. FreshDirect
FreshDirect is Northeast’s leading online grocery store that caters to consumers in the New York City, Washington, Philadelphia, DC metro areas, and surrounding regions in the northeast.
It facilitates the doorstep delivery of groceries, food, and alcohol. What makes them different other others is their direct partnerships with farmers and products and technology investment that enables them to deliver fresh groceries to their customers.
- Founded: 1998
- Founders: David McInerney, Jason Ackerman & Joe Fedele
- Headquarters: New York, New York, US
- Total Funding Amount: $280M (Over 3 Rounds)
- No. of Lead Investors: 2
- Revenue: $600M (As per TechCrunch’s findings)
- Area Served: Certain States in the North-eastern United States
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4. Shipt
Shipt is one of the prominent online grocery delivery apps in the USA. It offers same-day delivery of groceries and household essentials from various retailers it has partnered with to its consumers.
The company works together with many leading retailers such as Kroger, Target, and BestBuy – to name a few. It has a squad of over 300,000 Shipt shoppers who shop and deliver orders to customers.
Founded in 2014 by Bill Smith, Shipt was acquired by Target for $550M in 2017.
- Founded: 2014
- Founders: Bill Smith
- Headquarters: Birmingham, Alabama, US
- Total Funding Amount: $65.2M (Over 3 Rounds)
- No. of Lead Investors: 1
- Revenue: $875.9M (As per Growjo)
- Area Served: 5,000+ cities in the United States
5. Kroger
Though Kroger has now partnered with Instacart for its grocery delivery service, consumers place orders directly via its app or website.
Kroger’s grocery shopping and delivery app work quite like Instacart. It allows customers to order groceries online and then a Kroger associate (also known as a personal shopper) pickups and delivers orders at the doorsteps of the customer.
It even enables customers to pick up orders from a local store.
- Founded: 1883
- Founders: Bernard Kroger
- Headquarters: Cincinnati, Ohio, US
- Total Funding Amount: $550M (Over 1 Round)
- No. of Lead Investors: 1
- Revenue: $70B (as of 2020)
- Area Served: Nationwide
Conclusion
Keeping in mind the speed at which U.S. online grocery delivery market is growing, taking advantage of this opportunity is a smart move.
When planning to enter this era, it’s also a must to have a glance at key players who are ruling the industry as this will help you analyze what you can do to offer something better than already existing grocery delivery apps.
Through this post, we’ve covered the top 5 online grocery delivery apps in the USA but there are many more apart from the aforementioned list.
Here, we’ve highlighted some of those best online grocery shopping and delivery apps that offer same-day delivery and are driving millions of dollars in revenue.
