3 ms·
> And, at the store I order from, prices are exactly the same as in-store so there's not much (if any?) profit they could be extracting on that side. They coul
by jon-wood 11y ago
> And, at the store I order from, prices are exactly the same as in-store so there's not much (if any?) profit they could be extracting on that side.
They could easily be taking a cut from the shop's profits - margins at some grocery shops are pretty good, and at least in theory Instacart are bringing in custom that they wouldn't otherwise have.
- mathattack 11y agoYes - if they're reducing the costs (real estate, cashiers, etc) of the store, they can get money from that side of the transaction. The same is true for food delivery: restaurants save a lot of money if they're not providing space, servers, dishwashers, etc. This isn't to say that many won't go out of business. Many will, and the market will consolidate.
- ececconi 11y agoGross margins are probably pretty good for some items at grocery stores, but in general their income percentages are razor thin.
- saosebastiao 11y agoMargins at most grocery stores are abysmal. Not even Whole Foods, which has the highest margins in the industry, could subsidize that delivery model.
- toomuchtodo 11y ago> They could easily be taking a cut from the shop's profits If its easy, why are they not doing so? Because there's only so much pain you'll tolerate as a supplier before setting up shop yourself to provide that service directly.