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Uber starts same-day grocery delivery service in US

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Re: Uber starts same-day grocery delivery service in US

#51

It's hard to compete with grocery stores: 1. They're local. Most people have a grocery store within 5 minutes of their house. 2. They're well-stocked. You have ten thousand products to choose from. Who could ask for more? 3. They're timely. If you go to a grocery store, it will take you a certain maximum amount of time - the amount of time it takes to go down each aisle once. 4. They're accurate. You picked every ite…

I'm not sure this isn't satire. It reads like you did a search/replace on a defense of Blockbuster against the upstart Netflix.

To your specific points:

1. Locality is a huge competitive disadvantage. Real-estate, staffing, infrastructure, etc.

2. More-efficiently managing a wide selection and optimizing for product that frequently turns over is a key advantage of warehouse/delivery operations.

3. It makes no sense to compare an interruption of your day with an asynchronous order/delivery method. No-one uses Netflix the way they used Blockbuster. No-one misses Blockbuster.

4. Personally picking fruit directly off plants was more accurate than personally picking fruit in a grocery store. It's also something most people don't miss as a regular chore. Warehouse/delivery has a massive advantage here as well, as they'll be able to better manage inventory flow and don't have to suffer the same exposure to elements/contaminants as a grocery store.

They can even offer "ugly produce" at a discount, bringing the same implicit assumption of responsibility for odds and ends and generating sufficient extra revenue from the particular buyers, to effectively serve them and any returns.

There's no "niche" for this. The niche will be serving the people who enjoy farmer's markets and those who dropped a dozen eggs and will pay a premium for their replacement.

Re: Uber starts same-day grocery delivery service in US

#52
post #9

Why are Silicon Valley startups continually trying to get into the food and grocery delivery business? Is there research somewhere that shows that this is a lucrative market? I'm old enough to remember Webvan, I'm seeing COSTCO cede their delivery service to Google, and I realize that most food delivery business is minimum wage work. I don't see the money in it.

Uber outsources most all their costs. It's lucrative for Uber

Re: Uber starts same-day grocery delivery service in US

#53

It's hard to compete with grocery stores: 1. They're local. Most people have a grocery store within 5 minutes of their house. 2. They're well-stocked. You have ten thousand products to choose from. Who could ask for more? 3. They're timely. If you go to a grocery store, it will take you a certain maximum amount of time - the amount of time it takes to go down each aisle once. 4. They're accurate. You picked every ite…

Most people have a grocery store within 5 minutes, sure - but with 10,000 products? I've been living in London for the summer and if I were here any longer I'd be using a supermarket's delivery service. Sure I can find stores nearby but nothing like a tesco extra. And when the shop shrinks the things that go are the value items - and I end up paying twice as much for something that tastes the same and has a different…

American grocery stores do. Walmart grocery stores could fit a small town downtown in them.

I see your point though. It's interesting to be informed of all of these different needs I had not previously considered.

Re: Uber starts same-day grocery delivery service in US

#54
post #27

Earlier quoted context omitted.

Going to the grocery store is actually pretty time-consuming. That's true even though I live within a few blocks of one. I just did some back-of-the-envelope math and determined that the minimum time it could take for me to go to the grocery store and come back, from door to door, is about 40 minutes, and the maximum is about 2 hours. I took into account everything from walking to my car in the parking garage and get…

But you can go shopping only once a week if you have storage place at home. That's a pretty good amortised cost compared to your estimate of eating at Chipotle.

How long do you account for cooking and eating a meal?

Re: Uber starts same-day grocery delivery service in US

#55
post #26

I was just telling my wife that getting somebody to go to Costco for me would be a game changer. Somebody else takes my list and deals with all the people blocking the aisle to get their 5 cents of sample cheese or just because they rudely leave their cart in the middle? The stress reduction alone would be worth the money. I'm using Amazon Fresh and the savings from not eating out due to my laziness-based avoidance o…

What city do you live in? Instacart offers one hour Costco deliveries in my city (Boston) right now.

How can Instacart afford to be so fast and so cheap? ($5.99 delivery in an hour) I mean, there's at least about an hour of human labor involved in each one hour delivery.

Re: Uber starts same-day grocery delivery service in US

#56

Earlier quoted context omitted.

Most people have a grocery store within 5 minutes, sure - but with 10,000 products? I've been living in London for the summer and if I were here any longer I'd be using a supermarket's delivery service. Sure I can find stores nearby but nothing like a tesco extra. And when the shop shrinks the things that go are the value items - and I end up paying twice as much for something that tastes the same and has a different…

American grocery stores do. Walmart grocery stores could fit a small town downtown in them. I see your point though. It's interesting to be informed of all of these different needs I had not previously considered.

I mean we have lots of large stores.. but I wouldn't say everyone has one within 5 minutes. How many of these town-sized stores are there in a city out of interest?

Re: Uber starts same-day grocery delivery service in US

#57
post #36

I was just telling my wife that getting somebody to go to Costco for me would be a game changer. Somebody else takes my list and deals with all the people blocking the aisle to get their 5 cents of sample cheese or just because they rudely leave their cart in the middle? The stress reduction alone would be worth the money. I'm using Amazon Fresh and the savings from not eating out due to my laziness-based avoidance o…

Google Express has integrated Costco, although that doesn't help if you're outside the bay area.

Or in Manhattan.

Re: Uber starts same-day grocery delivery service in US

#58

Earlier quoted context omitted.

But you can go shopping only once a week if you have storage place at home. That's a pretty good amortised cost compared to your estimate of eating at Chipotle.

How long do you account for cooking and eating a meal?

The OP stated that they did not 'cook as much as' they would like to. This implies that perhaps cooking is something they may enjoy doing. Time spent doing something you enjoy is not equal to time spent doing something you don't particularly enjoy.

Re: Uber starts same-day grocery delivery service in US

#59

Earlier quoted context omitted.

American grocery stores do. Walmart grocery stores could fit a small town downtown in them. I see your point though. It's interesting to be informed of all of these different needs I had not previously considered.

I mean we have lots of large stores.. but I wouldn't say everyone has one within 5 minutes. How many of these town-sized stores are there in a city out of interest?

Depends on where you are. Springfield, MO for example has 5 Walmart Supercenters and 4 Walmart Neighborhood Markets. They also have at least one Hy-vee (They were planning on building at least one more, but I don't think it is completed yet). And that is just two companies with large stores. The town has several local and regional grocery store chains- and Dilons (Kroger). Many of these store do offer delivery service, too.

This all in a city that is less than 10 miles from one side to the other (160,000 population).

EDIT: I forgot- there are also 2 Sam's Clubs.

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