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I think he's saying a customer will ask "is Instacart cheaper than Walmart" and the answer is "no", so there isn't a place for Instacart to fit, assuming Amazon
by ssharp 9y ago
I think he's saying a customer will ask "is Instacart cheaper than Walmart" and the answer is "no", so there isn't a place for Instacart to fit, assuming Amazon owns the high-end side with Whole Foods (although I wouldn't assume Amazon would settle for just that).
Walmart already has grocery warehouses with their stores, so bolting on pickup/delivery to those makes sense. I don't know how much pickup/delivery could potentially negate the need for the store, but I'd assume the pickup/delivery load of a store has huge room for growth before you start questioning why the store needs to be open to the public.
I haven't used their grocery delivery service but their pickup service is well-executed and convenient, in my experience, so I'm assuming they can figure out how to be competent in delivery as well.
- octernion 9y agoright now, whole foods is something like 1 or 2% of the grocery market in the US. we plan to be the partner to the rest of the nation -- my initial question was how on earth you can just assume amazon (by default) owns the rest of the high end market, and, why you think "bolting on delivery" is easy/trivial.
- petra 9y ago>> why you think "bolting on delivery" is easy/trivial For someone in the position of Walmart, and with the many startups that doing delivery, it seems realistic. As for why do i think Amazon will win the high end? really, the biggest reason is that it's Amazon. But yes, that's not a good enough reason, but still, they win an awful lot. But maybe there's a chance for instacart to win the higher end, especially by offering the largest variety any merchant can offer.