Dive Summary:
- Despite the memorable failures of Webvan and Amazon's grocery delivery services, newly-launched companies are seeking to create sustainable business models for the service.
- Fiona Dias, chief strategy officer at ShopRunner, says that grocery delivery services have yet to succeed because expenses have been too high and profits too low.
- While many view the grocery delivery business as a ripe market, startups must solve problems such as how to deliver the groceries, where to store the groceries, how to develop a good website and mobile app, and how to keep customers happy.
From the article:
"... This new generation of grocery delivery pioneers say they've studied the mistakes of those who came before and learned that they can't get too big too quickly and can't have too many expensive drivers and truck fleets. They say they can't deliver everywhere and anytime a customer wants, at least when starting out. They aim to be tech-savvy, keep a small footprint and tap into local food suppliers.
And, they say, they need a top-notch website and mobile app, which is why many of the new grocery delivery services were started by engineers in the Bay Area. ..."
