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Google Launches Fresh-Grocery Deliveries

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Re: Google Launches Fresh-Grocery Deliveries

#71

Post by rajacombinator »

Google Shopping Express (the superior name) is the best delivery service I've used. One of the best Google products too. For car-less city dwellers like myself, it is a huge time and effort (and potentially money) saver to get bulky and heavy dry goods delivered to my apartment. There is definitely profit to be made here if they cut out the middlemen (stores) and operated their own warehouses. Right now they're probably trying to piggyback demand data, if they're smart. When you add in Google's ability to make quality software and algorithms it makes sense where their edge can come from.

But sadly, it will probably be just another "me too" side project that gets axed.

Re: Google Launches Fresh-Grocery Deliveries

#72

Post by ionised »

lucaspiller wrote: post #62
Symbiote wrote: post #58

Earlier quoted context omitted.

The UK has a very competitive market for grocery delivery. It's existed using the Internet since 1997 - it's one of the first services I remember people being attracted to. Everything is available, and after almost 20 years they've obviously worked out how to deliver what people want (fresh / unripe / whatever). Delivery is still £1-5 or so, depending on time, and the supermarkets often have a minimum spend (or addit…

Tesco will deliver for under £40 (previously £25), but will charge £4 extra on top of the delivery fee. Although there are a lot of players, apparently they operate these services at a loss [0]. [0] http://www.dailymail.co.uk/news/article-2707071/Supermarket-...

They don't mention the one I use in that article, Ocado, which is an online-only grocery company.

Re: Google Launches Fresh-Grocery Deliveries

#73

Post by yitchelle »

ehudla wrote: post #57

SV: Supporting the Asperger life style since 1998.

Attaching "lifestyle" as you have used it imply that it is a choice for Aspergers. For many, this is simply not the case. As a dad with two Asperger sons, somedays I wished that it was a choice and can be consciously switched off.

Sorry for the vent.

Re: Google Launches Fresh-Grocery Deliveries

#74

Post by simonbyrne »

michaelt wrote: post #59
nickpsecurity wrote: post #27

Google usually operates in high-margin industries. This is the opposite. I've had the "privilege" of working in this one. You're talking all kinds of players working against each other for perceived self-gain with individual companies constantly pushing costs down to the point their staff can barely break even. And Google intends to compete with that using something with higher cost? Pretty crazy. I was unsurprised t…

And Google intends to compete with that using something with higher cost? The UK already has at least one mass-market grocery delivery company that is profitable (albeit barely - a pre-tax profit of £11.9m on sales of £1,202.9m). The CEO, Tim Steiner, believes in the long term they can be more efficient than bricks-and-mortar retailers by having a few large, automated warehouses fulfilling orders for the entire count…

UK is a very different situation: online grocery shopping is very well established and very competitive, with most major supermarket chains offering delivery and supposedly 3 in 10 people buying their groceries online [1].

[1]: http://www.foodmanufacture.co.uk/Business-News/UK-is-biggest...

Re: Google Launches Fresh-Grocery Deliveries

#75

Post by thenomad »

mmgutz wrote: 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.

This is clearly a key concern for a lot of people, judging from the advertising in the UK for delivery services. Just about all of them emphasise how careful they are when picking.

FWIW, I'm also rather picky, and whilst I don't always get groceries delivered, I can't recall ever having a problem with sub-standard goods being picked.

Re: Google Launches Fresh-Grocery Deliveries

#76

Post by toomanybeersies »

michaelt wrote: post #59
nickpsecurity wrote: post #27

Google usually operates in high-margin industries. This is the opposite. I've had the "privilege" of working in this one. You're talking all kinds of players working against each other for perceived self-gain with individual companies constantly pushing costs down to the point their staff can barely break even. And Google intends to compete with that using something with higher cost? Pretty crazy. I was unsurprised t…

And Google intends to compete with that using something with higher cost? The UK already has at least one mass-market grocery delivery company that is profitable (albeit barely - a pre-tax profit of £11.9m on sales of £1,202.9m). The CEO, Tim Steiner, believes in the long term they can be more efficient than bricks-and-mortar retailers by having a few large, automated warehouses fulfilling orders for the entire count…

It certainly does make sense if you're looking at places with expensive property, like London. A supermarket takes up a huge area, and usually in areas where land tends to be expensive. Nobody wants to go to a supermarket in the middle of nowhere.

I think that's where online supermarkets are going to win out over conventional supermarkets.

Personally, I prefer to go to supermarkets than shop online, even if it was cheaper, I'd still probably go to the supermarket, but that's usually because I decide what I want to cook for tea on the way home from work, so I'll stop by the supermarket and grab some stuff, I enjoy the experience.

Re: Google Launches Fresh-Grocery Deliveries

#77

Post by ehudla »

yitchelle wrote: post #73
ehudla wrote: post #57

SV: Supporting the Asperger life style since 1998.

Attaching "lifestyle" as you have used it imply that it is a choice for Aspergers. For many, this is simply not the case. As a dad with two Asperger sons, somedays I wished that it was a choice and can be consciously switched off. Sorry for the vent.

The joke wasn't on people with Asperger's. It was on people who don't, but prefer to reduce interaction with others (which they often deem inferior, maybe?) and who decided to appropriate the Asperger label. I hoped the sarcasm would come through. Sorry.

Re: Google Launches Fresh-Grocery Deliveries

#78

Post by ehudla »

kevingadd wrote: post #61
ehudla wrote: post #57

SV: Supporting the Asperger life style since 1998.

Grocery delivery is extremely important for people with disabilities, people without cars, and people who are otherwise not able to burn an hour or two going to buy groceries. It's not just something for rich programmers. When I order groceries from Safeway the extra fee on top is pretty small and their employee brings it up on a cart and carries it all inside. This means that it's much easier to buy a bunch of groce…

And you think these are the reasons google decided to go into this business?

Re: Google Launches Fresh-Grocery Deliveries

#79

Post by dagw »

mmgutz wrote: 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.

I wonder if some smart data analysis can give a score about how picky a customer is likely to be (do they often order 'obscure' vegetables, do they only order stuff that is in season, do they search for a lot of food and cooking related terms). Highly picky shoppers will get the good stuff, and those likely not to notice or complain will get the crap stuff.

Re: Google Launches Fresh-Grocery Deliveries

#80

Post by toomanybeersies »

jon-wood wrote: post #67
mmgutz wrote: 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.

At Hubbub we've never seen that happen. We're working with independent shops who know they're part of a marketplace where they're competing against other grocers, and if they try to palm off their rotting stock on a customer we'll refund it at their expense, and the customer likely won't buy from them again.

The quality of produce is not a binary thing though. When you go to the supermarket, there's the rotting produce, there's the premium produce, but then there's also the mediocre produce, which probably takes up 80% of the stock of produce.

Now, someone who cares about the quality of their bananas, or specifically wants bananas of a certain ripeness (maybe they want overripe bananas for a cake, or slightly unripe bananas for cooking), can go to a physical store and select the bananas they want. A picker at a warehouse isn't going to do that, I'm sure they'll avoid picking stock that's past it, but that doesn't mean they'll grab the best, or what you want.

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