3 ms·

I'll be honest, I'm skeptical. And I'm sure investors are skeptical too after spectacular failures like WebVan and Kozmo. Sure these sites were different than

I'll be honest, I'm skeptical. And I'm sure investors are skeptical too after spectacular failures like WebVan and Kozmo. Sure these sites were different than what you are trying to accomplish (Online --> Deliver to your door vs Online-->Pickup at local store), but they still have similar problems. Groceries operate at razor-thin margins, and being a warehouse of food will only take you so far (just ask WebVan). How do you know if your "Ernies" associate will pick a ripe apple vs a bruised one? How can Ernies be "friendly" if all the interaction is ordering online/pickup at the store? The biggest question for me is, what is to stop the competition from implementing this if it sees initial success? Order online --> Pick up at store already exists for many types of businesses, if Meijer or Publix or Acme Grocery co sees success, they'll probably add this to their options, at a much easier cost than you will (as they will already have retail stores). What competitive advantage can you use that can fight against this?

ghotli 15y ago
The competitive advantage I see is rooted in the background of the individual corporations. The user interface involved is the dealbreaker and I generally have little faith in large, culturally non-software companies getting user experience right.
rsbrown 15y ago
"Groceries operate at razor-thin margins" Groceries operate at razor-thin net margins. Ernie's will operate at double-digit net margins. If you take a look at the books for any supermarket chain, you will see that the vast majority of gross profits gets eaten up by running those large storefronts. Webvan (and other home delivery attempts) simply replaced the large storefront cost with a large logistics cost. Ernie's eliminates those costs, all while reducing the chore of shopping for the consumer. It's a win-win.

ghotli 15y ago

The competitive advantage I see is rooted in the background of the individual corporations. The user interface involved is the dealbreaker and I generally have little faith in large, culturally non-software companies getting user experience right.

rsbrown 15y ago

"Groceries operate at razor-thin margins" Groceries operate at razor-thin net margins. Ernie's will operate at double-digit net margins. If you take a look at the books for any supermarket chain, you will see that the vast majority of gross profits gets eaten up by running those large storefronts. Webvan (and other home delivery attempts) simply replaced the large storefront cost with a large logistics cost. Ernie's eliminates those costs, all while reducing the chore of shopping for the consumer. It's a win-win.