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Google Launches Fresh-Grocery Deliveries

blogs.wsj.com

11–20 of 161 posts

Re: Google Launches Fresh-Grocery Deliveries

#12
Do the economics of food delivery change drastically when 1) there is no driver, 2) the car runs on electricity? Maybe this is their way to establish a food delivery brand ahead of what they to believe to be the inevitable driverless vehicle era.

Re: Google Launches Fresh-Grocery Deliveries

#15
I'm skeptical this will be successful. I just can't see these kind of operations selecting ripe and fresh produce like my mother taught me from the grocery store. They're concerned about their bottom line and will send whatever is available. Good for the stores, not good for wise consumers.

Re: Google Launches Fresh-Grocery Deliveries

#16
What does Google see that WebVan did not and Peapod and the USPS do not? Groceries tend to be low margin and relatively heavy goods.

[And, it takes me half hour to an hour to do my shopping, and that's knowing what I want to buy in advance, knowing the store. There is not much room for profit in this scenario, except charging value added rather than flat fee. I mean they are partnering with local grocers rather than automating food stores]

If anyone has the reach and network it'd be the USPS (although their fleet would have to be modified to carry perishable goods).

Seriously, they've been hemorrhaging money, why doesn't or hasn't the USPS looked into the growing same-day delivery market (beside their Amazon deals). Are their unions holding them back, because if they are, it's shortsighted. They should have logistics down to a science.

Re: Google Launches Fresh-Grocery Deliveries

#17
post #15

I'm skeptical this will be successful. I just can't see these kind of operations selecting ripe and fresh produce like my mother taught me from the grocery store. They're concerned about their bottom line and will send whatever is available. Good for the stores, not good for wise consumers.

That's a big reason I'm not excited about these services. But if you're buying a lot of processed food - and a lot of grocery carts in the US are mostly processed food - then it's not a big deal.

Re: Google Launches Fresh-Grocery Deliveries

#18
Woolworths and Coles have been competing on this in Australia for some time now.

You shop online in the same categories as the shelves in a real store, then arrange a 3-4 hour delivery window.

So much better than going into the store, plus they do stuff like 'you bought this last time'

Re: Google Launches Fresh-Grocery Deliveries

#19
Imagine the advertising opportunity they have on this service. CPG companies spend billions of dollars on advertising in stores and via coupons and have no real way to measure ROI. This service could change everything, not only can they measure ROI - they can target coupons to specific people based on demographics. I think the potential is huge, no surprise that Google is loosing money on Google express and probably this service too, but if they can manage to get millions of users on this service - they can make up for all that in no time. Google has deep pockets to afford this service. This is similar to how they invested heavily in YouTube and now its a cash cow. I think this opportunity is bigger much much bigger
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