GrubMarket’s Strategy & Growth: A Foodtech Business Model Breakdown

Sanjay Singh Rajpurohit

Published: Mar 11, 2021 | Updated: Dec 29, 2025

Introduction:

Before talking about the GrubMarket Business Model, let’s talk about the basics. Consumers today are making conscious decisions about what they eat or drink. Since the wave of fitness has hit the world, people all around the world are looking to avail the best quality and organic food products. Along with this, the new age consumers also demand convenience and quick services.

The preceding requirements are best catered by the means of on-demand app development or on-demand grocery delivery app. One can order from anywhere and at any time. Online grocery delivery platforms are gaining attention all over the world, not only with the consumers but also investors.

As consumers have grown concerned about the food they eat, the “organic food” market has created its own economy. Adding to the farmer’s convenience, apps like GrubMarket have created a buzz in the food industry. The app offers delivery of organic and local food products at your doorsteps directly from local artisans and farmers.

This blog offers you insights on the GrubMarket food delivery platform and the important things that you can learn and inculcate in your online food delivery business.

Overview: GrubMarket

Let’s learn some facts about the GrubMarket app.

GrubMarket a San Francisco Bay Area-based business that was founded in 2014 by Mike Xu.
The platform has received funding worth 32.1 million USD till 2018.
Grubmarket promotes the local food markets and farmers and hence the platform is something more than a grocery “delivery service”.
Their app serves both, the consumers and the local sellers(local farms, fishers).
GrubMarket is spread across different regions such as Los Angeles, San Francisco Bay Area, Orange County, San Mateo, Contra Costa, and Alameda.

Here are some of the important lessons that you can learn from the GrubMarket app before you start developing your own grocery delivery app.

3 Lessons Worth Learning to build your own app like GrubMarket :

Choosing your Business Model Wisely:

Many grocery delivery apps have come and gone. You don’t know about them as what they were offering wasn’t required by the consumers. You must carry out research and analysis on the food industry you want to target and create a sturdy business model. Only a radical business model will yield you the best of results.

Consumers have grown prone to eating organic foods. It has been found as a collective need for a huge user base and hence the market has gained such recognition. GrubMarket has identified the pains of this niche and is serving the same by the means of an “app”. Here is a highlight of the services GrubMarket provides:

1. Offers fresh and organic products

2. Supports local food markets and farmers.

3. Cheaper delivery than local grocery vendors.

4. Convenient ordering and delivery.

There are two things that make GrubMarket’s business model a stand-out one. The first is that the platform is totally free for the sellers. Secondly, the platform functions on the B2B business model. Hence, it prefers dealing with schools, restaurants, and companies than with individual consumers.

If you too want to serve your consumers with healthy, organic, and fresh vegetables and fruits then creating a grocery delivery app is the right way to go.

Pricing Structure:

These platforms remove all the middlemen and offer groceries way cheaper than other brick-and-mortar grocery stores. The competitive pricing structure has hugely contributed to the success of GrubMarket. The company claims to offer its grocery rates that are charge up to 50% less than conventional grocery stores.

Yet the company pays high attention to the kind of quality it offers. Their goal is to offer the best of products at a low pricing structure. A low pricing structure offers a direct benefit to a consumer hence becomes a point of consideration while buying groceries.

Unique Approach:

GrubMarket entered the food industry when the concept of online grocery delivery was fairly new to the world. As opposed to other food delivery apps, GrubMarket targeted serving less exclusively to high-income consumers. This approach has offered immense success to the local farmers and separates GrubMarket from other platforms.

The approach to creating a grocery delivery app must evolve with time. In such progressive times, there is an evident change in the pains and wants of consumers. Hence, your grocery delivery app should be able to embrace new changes quickly. The app also allows its partners to manage the logistics of their business and makes efficient use of AI to offer its consumers the best online shopping experience.

Wrapping Up:

The valuation of the global food and agriculture industry is 9 trillion USD. So, the market holds huge opportunities for start-ups to target different niches and create high-revenue generating businesses from the same. There is a 50% increase in the use of grocery delivery apps as compared to the stats of 2017.

If you’re a budding entrepreneur willing to invest in the on-demand marketplace, then grocery delivery holds many untapped areas with tremendous business potential. Technource has 13+ years of experience working with on-demand apps. We have experienced and expert tech advisors that are familiar with the ins and outs of the on-demand app development world.

You can contact us easily by signing up for a free consultation on our website. We would happy to discuss your ideas, the past, present, and future of the on-demand market, and our app development process.

Sanjay Singh Rajpurohit

Mr. Sanjay Singh Rajpurohit is the Founder and CEO of Technource, a visionary leader with deep expertise in AI, web, mobile, and custom software development. With a strong foundation in education and over a decade of entrepreneurial experience, he guides his team in delivering scalable, innovative digital solutions across industries. He focuses on building future-ready products by integrating cutting-edge technologies and fostering a culture of continuous improvement. In June 2024, he was honored with the “Mister Ahmedabad Personality” title, recognizing his impactful presence beyond the tech world.

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