Friday, August 22, 2014

Amazon Fresh and Google Out Grocery Delivered by Uber


Technology makes for strange bedfellows.  Technology evolves so fast in real time even some technology companies can’t keep up.  So we ask which technology widget is best for grocery delivery?
When Uber announced that they were testing same day grocery delivery don’t you think that Amazon and Google were a bit stunned?
Amazon Fresh has spent billions building robotic warehouses that reduce cost and streamline fresh food delivery looking for the last mile solution delivering all things Amazon.  All the while Google grocery delivery is reportedly investing $ 500 additional in expanding its grocery delivery business.
Now we learn that Uber has technology that they are testing in the Washington D.C. area for same-day grocery delivery with no minimum charge or fee!  That makes it less than either Google or Amazon for grocery delivery. The new grocery service is called Corner Store. Here is how it supposed to work:
“The Corner Store service is within Uber's main app and will allow users to order over 100 items priced to compete with DC convenience stores.
Corner Store asks the customer to pick where they would like their groceries delivered and texts what's available for delivery. An Uber driver then calls to confirm the order before delivery. Customers pay for their shopping via their existing Uber account.”
Sounds great, and it is positioned to cost less than either Amazon or Google grocery delivery service. Uber is intending to use this as a marketing tool to attract business through the enticing offer of no delivery fees for the service. Goods will be available between 9am and 9pm.
One thing is clear, customers do not want to spend all day shopping in the grocery store. If Uber focus is on Ready-2-Eat and Heat-N-Eat fresh prepared food in addition I think they will have a hit.  Legacy food retailers may have found another competitor targeting traditional grocery and c-store customers.

For international corporate presentations, educational forums, or keynotes contact: Steven Johnson Grocerant Guru at Tacoma, WA based Foodservice Solutions.  His extensive experience as a multi-unit restaurant operator, consultant, brand / product positioning expert and public speaking will leave success clues for all. 



3 comments:

  1. Think you’re absolutely right that Legacy food retailers have a lot of new competition, but some of them are not losing business to Uber and Google Express. They’re profitably selling more product as a result of the partnership with these new online players. Those retailers who have a strong ready-to-eat and heat-and-eat offering should get even more out of these partnerships. Keep up the great work.

    Bill Bishop
    Chief Architect, Brick Meets Click

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  2. Whole Foods Market INC. and Costco are going to be among Google’s partners for the new service, whereas the corporate already offers delivery services of non-perishable groceries with markets. They are selling more products as compared to the new online competitors.

    Mark,
    Eatisto.

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