Third-party delivery aggregators have made on-demand grocery delivery accessible to millions of consumers. But for the grocery chains themselves, the economics are getting harder to justify.
The Aggregator Cost Problem
When a grocery chain fulfils an order through an aggregator, the fees add up quickly:
- Commission on order value: 15–30% of each order goes to the aggregator
- Service fees: An additional 3–5% platform fee is common
- Product markups: Aggregators often mark up product prices by 10–25% compared to in-store prices, which gets passed to customers and damages brand perception
A FinanceBuzz analysis found that groceries delivered through apps cost at least 24% more than in-person shopping when you combine markups, delivery fees, and service charges. For the grocery chain, even without the consumer markup, the 15–30% commission eats directly into already-thin grocery margins (typically 1–3% net).
The Math: Aggregator vs. Own App
Consider a grocery chain doing 500 delivery orders per day with an average order value of $65:
| Metric | Via Aggregator | Own App |
|---|---|---|
| Monthly revenue | $975,000 | $975,000 |
| Commission paid | $195,000–$292,500 (20–30%) | $0 |
| Platform/tech cost | $0 | $5,000–$15,000/mo |
| Delivery labor | Included in commission | $45,000–$60,000/mo |
| Net savings with own app | $120,000–$220,000/month | |
Beyond Cost: The Data Advantage
When you sell through an aggregator, they own the customer relationship and the data. You don't know who your customers are, what else they browse, or how to retarget them. With your own app, you gain:
- Customer email and phone for direct marketing
- Purchase history for personalised recommendations
- Repeat purchase patterns to optimise inventory
- The ability to run promotions and loyalty programs directly
The Shift Is Happening
The online grocery market reached $12.5 billion per month in the US in September 2025, growing 31% year-over-year according to the Brick Meets Click Grocery Shopper Survey. Globally, the online grocery market continues to grow at double-digit rates, driven by rising consumer demand for convenience and same-day delivery.
Major chains are investing heavily in first-party delivery. The technology is no longer a barrier — managed platforms can launch a fully branded grocery delivery app in 2–4 weeks at a fraction of what aggregator commissions cost over even a few months.
How to Make the Transition
- Start hybrid: Keep your aggregator listing for discoverability, but incentivize direct orders with exclusive discounts
- Launch your branded app: Use a managed platform to get live quickly
- Shift promotions: Gradually move marketing spend from aggregator-promoted placements to your own channels
- Track the delta: Measure per-order profitability on each channel and let the numbers guide your transition speed
Market data and commission ranges are based on publicly available industry reports and published aggregator terms.
