Promoted How grocery stores compete with Amazon/Whole Foods (1 Viewer)

  • Welcome to the Roundtable! If you have an account already, please sign in, otherwise feel free to register. Note that you will be unable to post or access some boards and information unless you sign in.

Linda

Sweetheart of the Rodeo
Staff member
Global Moderator
Administrator
Board Moderator
Jul 20, 2016
6,572
20,209
Earlier this year I wrote about my experience with online grocery shopping, using Instacart. I could order groceries online from my local store, and the order was filled and delivered by employees of Instacart. The fees are reasonable, especially when I consider the time I would have spent in the store. Also, the employees I've spoken with are people people who want part-time work such as moms and students.

When Amazon purchased Whole Foods and entered into the home delivery business, grocery chains across the country turned to Instacart.

The San Francisco-based delivery service has long positioned itself as the “de facto ally of American grocers against Amazon” as Alison Griswold wrote for Quartz. By hiring shoppers to pick out and deliver orders from existing supermarkets, the $3.4-billion startup founded in 2012 gives on-demand service to decidedly low-tech grocers.

That was a much tougher sell before Whole Foods was bought, says Instacart CEO Apoorva Mehta. “The day of the Amazon announcement, my phone was ringing of the hook,” he tells Quartz. Instead of pilots and multi-year roll-outs, Mehta says retailers were calling to launch immediately in as many stores as possible. Everyone in the space needs a delivery solution,” he says.

The “Amazon Effect” is accelerating the move to online shopping across retail. It will likely claim many victims that fail to compete. But among the beneficiaries are grocery-delivery startups like Instacart and Shipt, which Target has agreed to purchase for $550 million.


I strongly believe in local businesses. For example, our grocery store makes an effort to source products from local producers. If you are ordering from a big retailer like Amazon, that is less likely to happen.

https://qz.com/1156121/amazons-acquisition-of-whole-food-was-the-best-thing-that-ever-happened-to-instacart/


(Laron) This thread has been promoted to the front page of transients and therefore also exists as an article, linked in here. All comments/replies will show in both locations.
 
Last edited by a moderator:

Pucksterguy

Elder Entity
Jul 28, 2016
1,992
6,519
I grew up in a family grocery business. I know it inside out. We had a huge customer base set up because customers could walk in and we'd deliver their food. As a compliment to that customers could just phone in their orders and for a fee we would pick their orders and deliver them. Customers included local restaurants , school and daycares. As well as busy housewives. It made our business recession proof. I can see how that can work.
 
OP
Linda

Linda

Sweetheart of the Rodeo
Staff member
Global Moderator
Administrator
Board Moderator
Jul 20, 2016
6,572
20,209
We had a huge customer base
Like an extended family, right? I feel that this is an important aspect of our lives here - being able to see others as people, rather than something anonymous. One of the points made in this article is that small local businesses will be able to compete with giants like Amazon by using a pick and delivery service.
 
  • Like
Reactions: Lila and Stargazer

Pucksterguy

Elder Entity
Jul 28, 2016
1,992
6,519
I did a lot of the deliveries so I knew all the customers personally. If they wanted a new product I'd make sure we got it. A lot of friendly banter. It was a fun job talking to people.
 

Pod

Collected Consciousness
Staff member
RT Supporter
Board Moderator
Jul 19, 2016
3,456
9,779
Scotland
Very interesting Linda. I know Tesco does a home delivery services, and I think one can get organic veggies delivered to the door but as we are, a much smaller country, people like to shop in person I think. Though one can even buy meals that you only need to cook.
 
  • Like
Reactions: Lila

Users Who Are Viewing This Thread (Users: 0, Guests: 1)