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Wal-Mart Plans to Test Grocery Delivery Through Uber, Lyft

bloomberg.com

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Re: Wal-Mart Plans to Test Grocery Delivery Through Uber, Lyft

#11

Post by maxerickson »

lujim wrote: post #9

This is going to take a bit of magic to pull off. Groceries are very low margin items and people just opt for pre-made restaurant food when we are feeling lazy. When I'm motivated enough to prepare my own food I'm motivated enough to go to the grocery store. This is the domain of driver-less delivery vehicles of whatever kind.

The typical grocery delivery service bumps up the margins.

Re: Wal-Mart Plans to Test Grocery Delivery Through Uber, Lyft

#13

Post by lujim »

rimantas wrote: post #10
lujim wrote: post #9

This is going to take a bit of magic to pull off. Groceries are very low margin items and people just opt for pre-made restaurant food when we are feeling lazy. When I'm motivated enough to prepare my own food I'm motivated enough to go to the grocery store. This is the domain of driver-less delivery vehicles of whatever kind.

There are also moms (and sometimes dads) at home with a small kids. And they may be highly motivated to avoid journey to a grocery store.

Agreed, and I'm in the boat. However those same people tend to have less disposable income and seem to be less apt to pay monthly fees or premiums for luxuries. When you think families think more bulk generic costco toilet paper and less "convenience fee" of any kind

Re: Wal-Mart Plans to Test Grocery Delivery Through Uber, Lyft

#14

Post by prplhaz4 »

maxerickson wrote: post #11
lujim wrote: post #9

This is going to take a bit of magic to pull off. Groceries are very low margin items and people just opt for pre-made restaurant food when we are feeling lazy. When I'm motivated enough to prepare my own food I'm motivated enough to go to the grocery store. This is the domain of driver-less delivery vehicles of whatever kind.

The typical grocery delivery service bumps up the margins.

The typical grocery delivery service also has the luxury of batching orders (controlling cost) and delivers with refrigerated vehicles (consistent product)...seems more sustainable to me...but what do I know - to me, the Uberization of most markets (other than ride sharing) never seems to have a clear win on cost/benefit...

Re: Wal-Mart Plans to Test Grocery Delivery Through Uber, Lyft

#16

Post by lujim »

maxerickson wrote: post #11
lujim wrote: post #9

This is going to take a bit of magic to pull off. Groceries are very low margin items and people just opt for pre-made restaurant food when we are feeling lazy. When I'm motivated enough to prepare my own food I'm motivated enough to go to the grocery store. This is the domain of driver-less delivery vehicles of whatever kind.

The typical grocery delivery service bumps up the margins.

I kind of question how much additional margin the average person will tolerate though. Will the same mom that spends time clipping coupons (or printing them) be willing to pay what it takes to make this worthwhile for Walmart? That's the demographic you want to entice if you want to make grocery delivery successful, not Johnny Ramen College kid.

Re: Wal-Mart Plans to Test Grocery Delivery Through Uber, Lyft

#17

Post by fattylite »

rimantas wrote: post #10
lujim wrote: post #9

This is going to take a bit of magic to pull off. Groceries are very low margin items and people just opt for pre-made restaurant food when we are feeling lazy. When I'm motivated enough to prepare my own food I'm motivated enough to go to the grocery store. This is the domain of driver-less delivery vehicles of whatever kind.

There are also moms (and sometimes dads) at home with a small kids. And they may be highly motivated to avoid journey to a grocery store.

I understand what you meant, but a trip to the grocery store can also be a perfect way to get their energy out if the kids are particularly bananas that day. So, some parents relish that trip.

Re: Wal-Mart Plans to Test Grocery Delivery Through Uber, Lyft

#19

Post by lujim »

nebulous1 wrote: post #12

I'm torn between wanting somebody to compete with Amazon and it being Walmart

Walmart has a notoriously bad rap, but they are pretty progressive for a big evil company. Amazon seems to get a bit more slack even though I have read that working there is a horrible experience.

Re: Wal-Mart Plans to Test Grocery Delivery Through Uber, Lyft

#20

Post by jerf »

lujim wrote: post #13
rimantas wrote: post #10

Earlier quoted context omitted.

There are also moms (and sometimes dads) at home with a small kids. And they may be highly motivated to avoid journey to a grocery store.

Agreed, and I'm in the boat. However those same people tend to have less disposable income and seem to be less apt to pay monthly fees or premiums for luxuries. When you think families think more bulk generic costco toilet paper and less "convenience fee" of any kind

While I agree there's an inevitable correlation there, since children are (reductionistically, financially) an expense and households that have an additional expense will be poorer than their equivalent household without that expense, I think you may still be overstating the poverty-inducing effects of children a wee bit.
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