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From what I understand from these comments, it sounds like Instacart is going to leverage labor at union staffed stores, like Kroger, to fulfill on its business
by xrd 6y ago
From what I understand from these comments, it sounds like Instacart is going to leverage labor at union staffed stores, like Kroger, to fulfill on its business opportunities.
This seems like a clever form of arbitrage, or shall we call it, disruption?
Is this the new frontier (or perhaps I'm just late to the game in understanding it) where larger online businesses (like Amazon) shift away from full time employment (with the costs associated with it) and let some other "local" or "brick and mortar" legacy businesses try to keep those employees with living wages and healthcare employed while those same "frenemies" (purchasing from them, but also competing with them) avoid those costs?
I spoke to an accountant friend the other day who works for a local independent grocery store. They are really trying to keep their low wage workers on payroll, despite having revenues cut in half because of COVID. Everyone is shopping at Amazon+WholeFoods. If those workers lose their jobs, will they be homeless? I don't think consumers care or think about them, even though they might be their neighbors.
- windthrown 6y agoKeep in mind that after Prop 22 in California, some grocery chains (Vons, Albertsons) are replacing their employees with contractors: https://www.washingtonpost.com/business/2021/01/06/vons-albertsons-doordash-prop-22-layoffs/ https://www.washingtonpost.com/business/2021/01/06/vons-albe...
- darkwizard42 6y agoLess arbitrage and more benefit to Instacart/the stores. Who probably knows a store better: random Instacart shopper or employee of the store? In the end, Instacart gets faster fulfillment and more accurate fulfillment for a price (whatever cut Kroger etc. take to do this). The stores get direct access to the order data and can then stock their stores better, capture the extra demand, and keep their employees engaged in revenue generating work (Instacart probably pays the store for this service of in-house shopping)
- adamcstephens 6y agoNot all positions at Kroger are unionized. Amazon already outsources like this for last mile deliveries.
- fukmbas 6y agoKroger is straight up replacing instacart within 5 years. Ocado robotic warehouses will pick next day orders, local fulfilment centers will pick same day orders and pick ups, and traditional warehouses will continue to supply the stores. This also means Kroger will stop picking product from their own shelves for curbside and online orders, therefore solving a huge issue with out of stocks for those traditional brick and motor customers. Instacart is screwed
- electriclove 6y agoLet's get to this future state!