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That is insane and unreasonable. The bubble has lost it.

MegaButts 10y ago
People have been saying that for years. The question is how crazy can things get before the bubble bursts?
gkoberger 10y ago
Why? Grocery shopping is extremely inefficient and has to be done weekly by almost everyone in the world. It's not a small problem that they're solving, so large amounts of cash (and a high valuation) makes sense.
- oculusthrift 10y ago
  One doesn't deserve a high valuation just because the problem they are solving is hard. The company he came from, Amazon, has more cash than anyone could raise. They have logistical expertise and are perfecting same day shipping at a national scale. They also offer Amazon "Fresh" which is essentially the same service except they don't skirt labor laws by classifying their employees as contractors. And non-tech people actually trust Amazon and order quite a bit from them. For them to succeed outside of a few big cities would require gross negligence and incompetence by Amazon, which isn't impossible. But seems unlikely.
  - envy2 10y ago
    > They also offer Amazon "Fresh" which is essentially the same service except they don't skirt labor laws by classifying their employees as contractors. At least in DC, the Amazon Fresh (and Prime Now) drivers are definitely just random people in their own car, the same as Instacart.
- matthewowen 10y ago
  Because it's a terrible way to solve it and this company doesn't seem to be executing particularly well on it. I actually agree that online grocery shopping should be great. It's mystifying to me that it isn't: if you go to the UK, the experience is fantastic: order direct from the grocery store, easy to order, cheap and efficient delivery. I don't really understand why US chains can't do the same thing.
  - JBReefer 10y ago
    We do, it's a very successful service called Peapod that you haven't heard of because it's not used by people in SV. It's exactly what you're describing, but doesn't have a hugely PR engine because it's a profitable arm of an existing store that doesn't require a 10x exit.
    - ghaff 10y ago
      And Peapod is actually the only delivery service I can get where I live. I've used it when I was on crutches for a few months because of a broken foot. I didn't love it but it was better than trying to do a full grocery shopping when I couldn't walk. In general, in the US, people mostly use delivery services if they can't easily go to the store and shop. Or if it's just a hassle because of kids, etc. I'm not sure if there are cultural differences from other places or it's just because, for most people in the US, hopping in a car and parking in the large supermarket parking lot just isn't a big deal. In any case, it doesn't seem like a market that's ripe for disruption except in the minds of Silicon Valley types. Adequate services exist. It's just that very few people have an interest in using them.
dang 10y ago
Unsubstantiveness and name-calling make for a bad kind of HN comment. If you have a substantive point, you're welcome it to make it thoughtfully. If you don't, please don't post here.

People have been saying that for years. The question is how crazy can things get before the bubble bursts?

Why? Grocery shopping is extremely inefficient and has to be done weekly by almost everyone in the world. It's not a small problem that they're solving, so large amounts of cash (and a high valuation) makes sense.

oculusthrift 10y ago
One doesn't deserve a high valuation just because the problem they are solving is hard. The company he came from, Amazon, has more cash than anyone could raise. They have logistical expertise and are perfecting same day shipping at a national scale. They also offer Amazon "Fresh" which is essentially the same service except they don't skirt labor laws by classifying their employees as contractors. And non-tech people actually trust Amazon and order quite a bit from them. For them to succeed outside of a few big cities would require gross negligence and incompetence by Amazon, which isn't impossible. But seems unlikely.
- envy2 10y ago
  > They also offer Amazon "Fresh" which is essentially the same service except they don't skirt labor laws by classifying their employees as contractors. At least in DC, the Amazon Fresh (and Prime Now) drivers are definitely just random people in their own car, the same as Instacart.
matthewowen 10y ago
Because it's a terrible way to solve it and this company doesn't seem to be executing particularly well on it. I actually agree that online grocery shopping should be great. It's mystifying to me that it isn't: if you go to the UK, the experience is fantastic: order direct from the grocery store, easy to order, cheap and efficient delivery. I don't really understand why US chains can't do the same thing.
- JBReefer 10y ago
  We do, it's a very successful service called Peapod that you haven't heard of because it's not used by people in SV. It's exactly what you're describing, but doesn't have a hugely PR engine because it's a profitable arm of an existing store that doesn't require a 10x exit.
  - ghaff 10y ago
    And Peapod is actually the only delivery service I can get where I live. I've used it when I was on crutches for a few months because of a broken foot. I didn't love it but it was better than trying to do a full grocery shopping when I couldn't walk. In general, in the US, people mostly use delivery services if they can't easily go to the store and shop. Or if it's just a hassle because of kids, etc. I'm not sure if there are cultural differences from other places or it's just because, for most people in the US, hopping in a car and parking in the large supermarket parking lot just isn't a big deal. In any case, it doesn't seem like a market that's ripe for disruption except in the minds of Silicon Valley types. Adequate services exist. It's just that very few people have an interest in using them.

dang 10y ago

Unsubstantiveness and name-calling make for a bad kind of HN comment. If you have a substantive point, you're welcome it to make it thoughtfully. If you don't, please don't post here.