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The list of companies that have tried and failed to build a sustainable business in this space is large -- from Kozmo.com (1998-2001)[a], Webvan (1996-2001)[b],

by cs702 6y ago

The list of companies that have tried and failed to build a sustainable business in this space is large -- from Kozmo.com (1998-2001)[a], Webvan (1996-2001)[b], and UrbanFetch (1999-2000)[c] during the "dotcom bubble" to the likes of Grubhub, Instacart, and Uber Eats in recent years. So far, it seems that only tightly integrated operations with highly standardized food products for which the source/freshness/ripeness of ingredients is not an issue (e.g., boxed pizzas made from frozen manufactured components) have been able to make local on-demand delivery sustainable at a national or global scale. The only "exceptions" would appear to be FreshDirect (founded by an owner of NYC's Fairway Market) and Peapod (operated by Giant supermarkets)... BUT both have grown more slowly and deliberately than the latest crop of startups, while maintaining tight/integrated control over all aspects of operations. Moreover, neither allows consumers to order on-demand -- consumers have to choose a predefined delivery window in advance, sometimes days in advance.[d] [a] https://en.wikipedia.org/wiki/Kozmo.com https://en.wikipedia.org/wiki/Kozmo.com [b] https://en.wikipedia.org/wiki/Webvan https://en.wikipedia.org/wiki/Webvan [c] https://en.wikipedia.org/wiki/Urbanfetch https://en.wikipedia.org/wiki/Urbanfetch [d] https://nypost.com/2020/03/15/nyc-freshdirect-delivery-times-are-vanishing-amid-coronavirus-panic/ https://nypost.com/2020/03/15/nyc-freshdirect-delivery-times...

slowmovintarget 6y ago
My family has been depending on InstaCart for groceries. Two deliveries a week has kept us in fresh food (mostly) and household necessities without us having to venture to the markets. For us, it's been vital. (We're in the risk profile for bad COVID-19 outcomes, so we've been extremely careful).
- cs702 6y ago
  Without a doubt, these food delivery services have been a godsend for many during these crazy times. Whether these services can become sustainable businesses or not, we should feel grateful for their current existence -- and for the willingness of their backers to subsidize the cost of delivering food to our door. These services and their backers deserve a big THANK YOU!
nappy 6y ago
The largest exception is Domino's, which has outperformed essentially everything in the same time period.
- cs702 6y ago
  Did you actually read what I wrote above? I mentioned boxed pizzas specifically as an example of "tightly integrated operations with highly standardized food products for which the source/freshness/ripeness of ingredients is not an issue" and noted that only those kinds of operations "have been able to make local on-demand delivery sustainable at a national or global scale." Those operations include not only Domino's, but also other pizza delivery chains (Pizza Hut, Little Caesar's, Papa John's, etc.) as well as other standardized-food-product delivery chains (e.g., Jimmy John's).

by cs702 6y ago

slowmovintarget 6y ago

My family has been depending on InstaCart for groceries. Two deliveries a week has kept us in fresh food (mostly) and household necessities without us having to venture to the markets. For us, it's been vital. (We're in the risk profile for bad COVID-19 outcomes, so we've been extremely careful).

cs702 6y ago
Without a doubt, these food delivery services have been a godsend for many during these crazy times. Whether these services can become sustainable businesses or not, we should feel grateful for their current existence -- and for the willingness of their backers to subsidize the cost of delivering food to our door. These services and their backers deserve a big THANK YOU!

nappy 6y ago

The largest exception is Domino's, which has outperformed essentially everything in the same time period.

cs702 6y ago
Did you actually read what I wrote above? I mentioned boxed pizzas specifically as an example of "tightly integrated operations with highly standardized food products for which the source/freshness/ripeness of ingredients is not an issue" and noted that only those kinds of operations "have been able to make local on-demand delivery sustainable at a national or global scale." Those operations include not only Domino's, but also other pizza delivery chains (Pizza Hut, Little Caesar's, Papa John's, etc.) as well as other standardized-food-product delivery chains (e.g., Jimmy John's).