Core issue long-term is that if Amazon doesn't own the "last mile" it will be at the mercy of those that do; clearly, Jeff knows this, though unclear how he's going to address this long-term.
Wal-Mart Plans to Test Grocery Delivery Through Uber, Lyft
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Re: Wal-Mart Plans to Test Grocery Delivery Through Uber, Lyft
#22Earlier quoted context omitted.
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.
I've been Single Income/Single, Dual Income No Kids (DINK), dual income with kids and single income with kids. Kids won't completely destroy your finances but 529 plans/day care alone can put a hurting on your finances.
You become much more financially responsible and less likely to pay for luxury services (for yourself) like HBO, Spotify, Netflix, Gym membership, high lease car payment etc after you have kids.
Re: Wal-Mart Plans to Test Grocery Delivery Through Uber, Lyft
#23Call me old fashioned but I still would trust UPS/FedEx more with my packages - as opposed to contracted amateurs. Granted, last mile delivery is always a challenge... How long until you can get a freight van through uber's subprime leasing program?
In the UK we have Yodel, which is essentially 'contracted amateurs' delivering in their own vehicles.
Re: Wal-Mart Plans to Test Grocery Delivery Through Uber, Lyft
#24This 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.
"Feeling lazy" and deciding not to prepare food is a different problem than not taking ingredients on hand and not wanting to go to the store because of any of a variety of reasons (teething baby, poor air quality day -- especially for asthmatics, or just disliking the in suite experience at the local grocery, etc.)
For you maybe there is no difference between having time and desire to prepare food and having willingness to go to the site, but you aren't the whole market.
Re: Wal-Mart Plans to Test Grocery Delivery Through Uber, Lyft
#25I'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.
To second this, I've had three or four conversations with Amazon warehouse employees and all told me it was a terrible experience. One worked at a major distribution point in Pennsylvania and explained that in addition to being compelled to essentially run back and forth constantly to pick items, they refused to provide air conditioning in the middle of summer.
Re: Wal-Mart Plans to Test Grocery Delivery Through Uber, Lyft
#26UK supermarkets are a bit ahead of the curve here. All the large ones have a home delivery service, including Walmart-owned ASDA. It's quite cheap too: £1-6 if you buy £40, for various time slots. They all use their own vehicles and staff, so I suppose Wal-Mart can reduce the risk by using Uber/Lyft. I wonder though, does this mean no active cooling on the way? Can you trust that the ice cream is still frozen when it arrives?
I have found home delivery very useful, especially after having a baby. I don't enjoy going to a supermarket after work on weekdays, but receiving a delivery is easy and means the weekend is free. The main psychological barrier is that it takes surprisingly long to choose groceries online, almost as long as walking around the store. They try to make it easier by suggesting things you usually order, but it's still something you have set aside time for.
Re: Wal-Mart Plans to Test Grocery Delivery Through Uber, Lyft
#27I'm always surprised grocery delivery is still a big deal in the US. All the major supermarkets in the UK do home delivery, next day, for a £3-5 delivery fee. You can go the site, fill your basket, and checkout. You also get a 1-2 hour delivery slot so you don't have to wait at home all day. We also have Amazon Prime Now doing grocery delivery within 1 hour in some cities. I can see how it would be a problem in some less densely populated areas in the US but how it's not done in all cities is beyond me. Any one know?
Re: Wal-Mart Plans to Test Grocery Delivery Through Uber, Lyft
#28This 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.
Sure and why would people use an app for a ride when they could just hail a cab or drive themselves?
Re: Wal-Mart Plans to Test Grocery Delivery Through Uber, Lyft
#29This 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.
UK experience suggests there's a decent market for delivered groceries: these stats (http://www.igd.com/Research/Shopper-Insight/Pushing-online-s...) from 2015 say that 11% of shoppers used online-shopping-with-delivery for their main shop, and 26% had used it at least once in the past month. So there is a decent demand there willing to pay delivery charges that can sustain a with-human-driver style delivery service.
Re: Wal-Mart Plans to Test Grocery Delivery Through Uber, Lyft
#30Earlier 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.
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.
Exactly. For my toddlers I also view it as training in some level of obedience (not running to the other side of the store), social interaction, dealing with disappointment (no you can't have the batman matchbox car set), learning about money (goes in hand with the disappointment factor!), helping me to pick out food, learning what stuff is called, a little hide and seek fun within the obedience bounds...it's like a little slice of life learning all in one place.
Overall it is a challenge for a parent though, so I'm not convinced that many won't just stay at home and order food from an app with the kids watching TV.