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Instacart (YC S12) aims to be the Amazon Prime of grocery delivery

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Re: Instacart (YC S12) aims to be the Amazon Prime of grocery delivery

#51

I hate to be overly negative against this startup, but I have a couple of issues with this service, that haven't been addressed since Webvan in 2000: 1) The target audience is definitely those people who are too busy to get their own groceries. If they are too busy to get their own groceries, aren't they too busy to cook a meal? I would think that take-out or going out to eat would be their #1 competitor in this area…

Steve, thank you for your comments.

Our metrics to date seem to disagree with your speculation about people not having the time to cook. There are also a host of products that Instacart carries for occasions other than dinner, like sundries, snacks and beer. These are our most popular items. Also, I agree that it would be a terrible experience for the customer if items arrived expired or broken - which is why we take such great care to make sure that those things don't happen.

We've also found that a 3-hour delivery is very convenient for most customers, and it's by far the most preferred option. With regards to delivery from grocery stores themselves: please try ordering something from one in the next hour.

Re: Instacart (YC S12) aims to be the Amazon Prime of grocery delivery

#52

I hate to be overly negative against this startup, but I have a couple of issues with this service, that haven't been addressed since Webvan in 2000: 1) The target audience is definitely those people who are too busy to get their own groceries. If they are too busy to get their own groceries, aren't they too busy to cook a meal? I would think that take-out or going out to eat would be their #1 competitor in this area…

I went to a talk with one of WebVan's early employees, who actually went on to found Kiva Systems, the robotic fulfillment system Amazon just purchased for something like $750 million.

He seemed to insist the reason WebVan couldn't be profitable was because fulfillment was too expensive, which served as inspiration for Kiva. Having people walk around was too slow and too big a cost center.

Obviously this is biased, but still an interesting point to throw in here, since it doesn't look like something they've addressed.

Re: Instacart (YC S12) aims to be the Amazon Prime of grocery delivery

#53

I hate to be overly negative against this startup, but I have a couple of issues with this service, that haven't been addressed since Webvan in 2000: 1) The target audience is definitely those people who are too busy to get their own groceries. If they are too busy to get their own groceries, aren't they too busy to cook a meal? I would think that take-out or going out to eat would be their #1 competitor in this area…

It's really for people without a car. I have plenty of time to cook, but shopping for groceries without a car is annoying. Taking more than two bags at a time on the bus really sucks.

Re: Instacart (YC S12) aims to be the Amazon Prime of grocery delivery

#54

I hate to be overly negative against this startup, but I have a couple of issues with this service, that haven't been addressed since Webvan in 2000: 1) The target audience is definitely those people who are too busy to get their own groceries. If they are too busy to get their own groceries, aren't they too busy to cook a meal? I would think that take-out or going out to eat would be their #1 competitor in this area…

Don't forget about people who don't have cars.

I absolutely loved Ocado when I was living in London. Tesco's was four blocks away, and Sainsbury's a kilometer. Getting groceries home on the bus is no fun.

Damaged goods were refunded no questions asked (the yogurt pots had a habit of bursting).

If I could get the same service in this area, I'd do it at the drop of a hat.

Re: Instacart (YC S12) aims to be the Amazon Prime of grocery delivery

#56
post #49

Do you not have these services already in the US? In the UK every major supermarket will deliver to your home whenever you want. They all have mobile apps, etc. They have the leverage, surely the same would happen in the US?

I imagine is has to do with the comparative sizes and population densities.

Re: Instacart (YC S12) aims to be the Amazon Prime of grocery delivery

#57
post #2

Amazon has had, what, five years to expand its Amazon Fresh grocery delivery service? The fact that they have chosen not to implies that they haven't managed to make it cost effective. I think this speaks volumes about the feasibility of grocery delivery.

Are you familiar with FreshDirect? It's an incredibly popular (and profitable) service for grocery delivery in NYC. As the article mentions-- in big cities, this is a viable business.

Re: Instacart (YC S12) aims to be the Amazon Prime of grocery delivery

#58
I loved Webvan when it existed, and then Tesco's delivery service in the UK, but never got into the delivery options in the US since then. (I also ended up with >30 of their crates...)

I'd pay $50/wk for someone to go to storage freezer (deer, beef), the butcher in Alameda (other meat), Berkeley Bowl (produce), Tokyo Fish Market (fish, japanese stuff), Whole Foods (365 is a decent deal, failthrough for anything not at the above), Costco (specific bulk items, like ito-en green tea and san pelligrino), and Trader Joe's (frozen food) to get groceries. Unfortunately, I think I outgrew Safeway some time ago. The other problem is I often want to buy highly seasonal items, based on availability, price, and quality. I don't think there's a good way to get the quality I want at a single store at a decent price; Whole Foods comes closest, but is expensive. Add BevMo for liquor, too.

Webvan had basically one or two steps better quality than Safeway (on par with Andronico's), and all in one place.

A service to get stuff for a party during the party (e.g. if you run out of beer) in 1h for $10 would be awesome. I don't think I'd use 3h Safeway delivery even if free. I would use a higher end service with great quality food (by going to the right shops) if the ordering experience exposed current inventory status.

Re: Instacart (YC S12) aims to be the Amazon Prime of grocery delivery

#59

I hate to be overly negative against this startup, but I have a couple of issues with this service, that haven't been addressed since Webvan in 2000: 1) The target audience is definitely those people who are too busy to get their own groceries. If they are too busy to get their own groceries, aren't they too busy to cook a meal? I would think that take-out or going out to eat would be their #1 competitor in this area…

This is already very common in England, and a number of the major supermarkets offer delivery service (Tesco and Ocado/Waitrose are I believe the largest).

1.) The reason I get them delivered isn't necessarily that I'm too busy, just that pushing my way around a busy supermarket on Saturday afternoon is boring! Honestly, when we haven't done an online shop and end up having to go to the store I find myself wishing I could just "search" for items, like with the web/iPhone app.

2.) Ocado (the service I'm familiar with here) never chooses items near the expiry date, it's as simple as that. They must recognise that if people were consistently getting nearly-spoiled goods, they'd just stop using it. Products nearing their expiry date usually have their price reduced in their store, so it's not a problem shifting that stock.

3.) Agreed, Ocado lets you choose 1-hour slots and that's about the longest I'd want. Unless nearer the time they can be more specific based on the van's progress, e.g. send a text saying "we should be with you between 8.00 - 8.30".

Honestly, if I was building this service I'd be looking at someone like Ocado. For me, they've nailed the whole product (including awesome iPhone/iPad apps). If the InstaCart folks would like more info about them (guessing you can't use it outside of the UK?), let me know and I'd be happy to help.

Re: Instacart (YC S12) aims to be the Amazon Prime of grocery delivery

#60
post #54

I hate to be overly negative against this startup, but I have a couple of issues with this service, that haven't been addressed since Webvan in 2000: 1) The target audience is definitely those people who are too busy to get their own groceries. If they are too busy to get their own groceries, aren't they too busy to cook a meal? I would think that take-out or going out to eat would be their #1 competitor in this area…

Don't forget about people who don't have cars. I absolutely loved Ocado when I was living in London. Tesco's was four blocks away, and Sainsbury's a kilometer. Getting groceries home on the bus is no fun. Damaged goods were refunded no questions asked (the yogurt pots had a habit of bursting). If I could get the same service in this area, I'd do it at the drop of a hat.

I second that. We have a standing weekly order with Ocado.

For those who've not experienced Ocado weekly deliveries:

It's fantastic - they automatically create an order for us every week for delivery on Friday between 6pm and 7pm. The order includes items we've said to always include, excludes items we've said to never include, but other than that they create a "recommended" order based on our past shopping patterns. Usually it's a very close match and we just tweak some quantities if we've used less or more of something or want to wary our menu.

We then have until about 1am on Friday to amend the order via the web interface or their mobile apps as our needs change through the week. It cuts down my total grocery shopping time to about 5 minutes a week.

Everything comes sorted into color coded bags for the freezer, fridge or cupboards, and the invoice (and web site) lists the minimum number of days until the use by date of each item.

I hardly shop offline any more - between Ocado and Amazon, 99% of my shopping needs are taken care of.

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