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Well, you can look over the pond to find out why. In the UK, which is much less car focused, we've had a successful instacart equivalent, Ocado, for a decade.
by mattmanser 10y ago
Well, you can look over the pond to find out why.
In the UK, which is much less car focused, we've had a successful instacart equivalent, Ocado, for a decade. They're presently turning over about £1 billion per year ($1.25 billion) [1]. Market cap on today's market is £1.5 billion ($1.85 billion)[2].
Now all the major supermarkets home deliver and have for 5+ years. There's been a massive shift in the big chains' store building, they now build small "express" stores in town centres and near offices allowing people to pick up minor things without having to do a full shop. As far as I know, no-one's building large stores at the moment.
And the American market is potentially worth more a lot more than the UK one.
[1] http://www.bbc.co.uk/news/business-31108569 http://www.bbc.co.uk/news/business-31108569
[2] https://uk.finance.yahoo.com/quote/OCDO.L?ltr=1 https://uk.finance.yahoo.com/quote/OCDO.L?ltr=1
EDIT: Other interesting note, in the UK, the markup for delivery is free or a fairly nominal charge (£5/$6), but only if you pick a slot in a few days. If you want it sooner, or in a prime-time slot, you have to pay more for those delivery slots. The supermarkets are building the costs into the prices.
Also, here gas costs a lot more and it's almost cheaper to pay £5 than it is to drive to the supermarket.
EDIT2: I should add the small stores have a regulatory reason they're small, UK law means only stores under a particular size can be open more than 7 hours on Sundays.
- qqg3 10y agoWhat you might not know? Ocado has built the backend for a lot of those major supermarkets offering online shopping. Another revenue stream for them as they are shopping the technology abroad too
- martinald 10y agoThat's not really true. They do it for Morrisons but noone else. They haven't been able to sell the technology abroad yet, and the CEO commented in their last annual report how this was a big disappointment. To be honest though, the technology is superb. Compared to Tesco, Asda or Sainsburys, deliveries are always bang on time and I have only out of dozens of order had one item that was out of stock, which is much better than the competition who always have to substitute random items in.
- martinald 10y agoTesco has actually been doing this forever. There is a mention of them doing online shopping in 1986! But they actually launched the product proper, in 1996, where they would give you a CD-ROM and it would then sync the diff of products available when it connected. Very ahead of its time - nearly 20 years. The US grocery market is so far behind on this it's pretty crazy.