I have been active in the IT and startup industry for 3 decades. Meeting on an average of 2 entrepreneurs in a day is very common to me.
But rarely, I got an opportunity to meet failed yet inspiring entrepreneurs.
Recently I met such an entrepreneur who once owned a Big Basket clone app and soon he failed.
His failure will show you the path to success in the grocery delivery app market.
The following are some of the questions I asked him and the honest answers he gave.
Me: What inspired you to launch a grocery delivery app?
He: In March 2020 – yes during the pandemic – I launched the app in the city of Bengaluru. The thing which motivated me to launch such an app is the convenience it offers to people who do not want to visit a grocery store, bargain with the shop owner and lift the grocery bags all the way back home.
Yes, I was solving the real problems of the users. But unfortunately, many apps like mine were solving the same problem!
Me: Did you carry out a competitive analysis before developing a grocery app as you were launching your app in a highly competitive market?
He: I didn’t and that was my biggest mistake. I later realized that with competitive analysis, I could have come up with a better app, better customer service, and a better business model than my competitors. It could have provided me with solid business strategies.
Me: Let’s talk about the business. Which were the top user groups of your app?
He: Since I was selling groceries, the top user groups included women in all categories such as working women and housewives. However, unlike working women who easily became familiar with the idea of online grocery stores, housewives didn’t adopt it on a large scale.
Yes, I could have offered them an option to call and order groceries as Uber did in many cities in the USA for elderly people, but I again realized that too late. Probably, it was the butterfly effect – I did not define the user group, thus failed to understand user characteristics and requirements, thus failed to satisfy their (housewives) requirements.
Me: How much the capital cost you required to launch the Big Basket clone?
He: It was around $15000. The app itself costs me around $5000. I spent more $5000 on marketing, $3000 on human resources, and $2000 on other legal formalities such as company registration, trademark registration.
I must tell you that the app cost me less as I chose a clone. If I had selected the custom app, it would have cost me more than $20000.
Me: You said clone. Did your Big Basket clone app have all features the same as the native Big Basket app?
He: I was promised by the app agency that the clone app would look and work the same as the native app. But that wasn’t true. And I think it happens with every clone app.
The native Big Basket app has a very extensive feature set, advanced security measures, seamless UI, an ignorable page loading speed, AI-enabled algorithms, and many more.
Even in the parallel universe, an app agency can’t develop such a great app at the cost of $5000! There were many features missing in the admin panel too.
The very workable alternative of the clone app is the MVP version of the app. Both require the same investment. However, in the case of MVP, you can add your custom features, launch quickly, gather customer feedback, and then upgrade. This is the perfect strategy to develop a grocery app like Big Basket in 2020. It involves a very low risk.
Me: Did you ever try to understand the customer’s grocery buying behavior or pattern?
He: No, my apps lack algorithms that keep an eagle eye on user activities and understand their buying patterns such as people are buying milk, bread, and cookies together or buying essential products in bulk. I know this is very crucial and it helps to earn more revenue by suggesting to them the items based on their previous purchase or items stored in a shopping cart.
Me: How did you provide customer support?
He: I have done everything for ensuring remarkable customer support – from hiring customer support executives to adding dedicated ‘user queries management’ features in the admin panel. But in many reviews, users raised questions about our customer support. They weren’t happy.
Interestingly, all were complaining about the delayed response from the customer support team. To solve this problem, I added a chatbot in the app that gives answers to users within seconds. But it was too late. My company brand image had already vanished!
Me: Can you summarize the top reasons why your Big Basket clone app could not perform well?
He: It was because of the many blunders I made on the business, product, and administration front. I did not aim to deliver a better product than competitors. My app also lacked many crucial features and it had a very basic UI. I did not even identify user requirements. The AI-enabled algorithms and business intelligence modules to measure the buying pattern of the users were something I had never considered.
We at GED not only build MVP/Custom/Clone Big Basket app but build successful entrepreneurs.
You might have already understood that you don’t just need an app to succeed in the grocery delivery market.
You also need a robust business strategy including marketing and customer support strategy.
Thus, we help you build the startup from rock bottom – from ideation to execution and support.
We develop a custom or MVP version of the grocery delivery app. And we even provide a Big Basket clone script that is equipped with all features same as the native app.
We appreciate the efforts you put into your dream. To brighter it further without making you burn anything, we provide free legal, business, and technical consultation to all entrepreneurs.