Instacart (YC S12) wants to be Amazon with 1 hour delivery
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Re: Instacart (YC S12) wants to be Amazon with 1 hour delivery
#52Re: Instacart (YC S12) wants to be Amazon with 1 hour delivery
#53Re: Instacart (YC S12) wants to be Amazon with 1 hour delivery
#54This looks great. Today I'm sick WFH and could really use some meds delivered. I signed up for an invite... what is the process/wait time like? I may have to try something else if I'll need to wait too long.
Re: Instacart (YC S12) wants to be Amazon with 1 hour delivery
#55I'd love to have this service at home, so I'm (selfishly) hoping Instacart becomes hugely successful! That said, I can't help but wonder whether the company will find a business model with sustainable economics. A lot of really smart people have tried and failed to accomplish this sort of thing before. For example, Amazon invested $60 million in Kozmo.com back in the late 90's, and they couldn't make it work. (Kozmo.…
Real-time operations are costly to manage even though the software has become easier to build. Not being Amazon and not being able to control inventory, and access to that inventory, hurts. However, probably a bigger issue is establishing consumer habit - triggering that need to order at the moment the user wants it. This comes down to establishing a brand (expensive) and also evolving consumer behavior (more expensive). And, these consumers will have to be in the You could say Uber is a counter example of succeeding in this space. I would argue that they replaced an existing consumer habit with a better one. I don't see that in the same-day delivery space - thus the need for education.
There have been a few generations of these services (Webvan / Kozmo; Licketyship; Ecourier / Shutl; Postmates). Eventually, the cost of tapping into consumer habit vs the small margins of brokering a delivery will create an amazing opportunity. In the meantime, the cost of educating and acquiring users is a big deterrent and if you can build the kind of company innovative enough to solve this problem, its likely you have a prohibitively high opportunity cost.
Re: Instacart (YC S12) wants to be Amazon with 1 hour delivery
#56Re: Instacart (YC S12) wants to be Amazon with 1 hour delivery
#57Re: Instacart (YC S12) wants to be Amazon with 1 hour delivery
#58I'd love to have this service at home, so I'm (selfishly) hoping Instacart becomes hugely successful! That said, I can't help but wonder whether the company will find a business model with sustainable economics. A lot of really smart people have tried and failed to accomplish this sort of thing before. For example, Amazon invested $60 million in Kozmo.com back in the late 90's, and they couldn't make it work. (Kozmo.…
While I agree that a lot of smart people have tried this before (Kozmo.com, WebVan, etc), I believe that there are significant differences in the approach that we are taking. Specifically, Kozmo.com was founded in an era where you could IPO without having profits. Having that mentality from day one allowed them to make huge concessions to users such as give them free delivery on everything, and not have a minimum ord…
"I can get it in 2 days free with amazon, or $4 today... is that worth it?" People will spend huge amounts of time and effort to not pay delivery charges, even when the total price ends up being the same!
Re: Instacart (YC S12) wants to be Amazon with 1 hour delivery
#59Deatil of what I see (on the left) vs what I probably should see (on the right, after zooming manually):