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I loved Webvan and when they failed, I think the company I was working for was able to snag some of their conference phones and Aeron chairs. I remember orderi

by mergy 3y ago

I loved Webvan and when they failed, I think the company I was working for was able to snag some of their conference phones and Aeron chairs. I remember ordering produce for delivery and they allowed different ripeness of bananas so I would order one of each (green, ripe, etc ) just to see if they came and looked differently. This was back in the day of web commerce so fun to play with. Good times. I remember Pac Bell Park had all their seats with Webvan cup holders and scoreboard ads for Webvan too at the time.

Fire-Dragon-DoL 3y ago
Did the bananas arrive any different?
- infofarmer 3y ago
  For the record, I'm currently in Saigon, and whenever I order delivery from the local Tops Market (around USD 1.5 fee, within two hours from order placement) they call me to say that bananas are either too ripe or too green and confirm if I still want them. Would love them to digitize this interaction. In response to another comment, the pickers have access to the backroom and frequently deliver better produce than would be available in-store.
a5seo 3y ago
I bought Webvan stock on their IPO day. Lost around $5k. (I was 22). Amazing service. Terrible business model: boil the ocean, premature scale, hire the head of Andersen Consulting as CEO. Every bad, nonsensical decision. And yet, the core was valid: a lot of people want their groceries delivered. When I went to business school a couple years later, the CMO of H-E-B spoke to my class (later, President) and I asked when they’d offer delivery. His response: “we believe people enjoy the experience of walking the aisles.” Well, Scott, whose parking lot is now 50% curbside pickup? Who spent 9 digits to acquire Favor? You’re welcome, you rich bastard. It’s a good thing the grocery business had enough margin for error for these people to come around to learn the correct lessons from Webvan.
- bruce511 3y ago
  Curbside pickup, and delivery are quite different economically, but I agree that "enjoy walking the isles" is nonsense. I'm not sure the economics of delivery (in a general context) work. Sure, there are folk who are time-poor, and cash-rich, and for them it makes sense, but for the rest the price either has to go up to reflect the cost, or the delivery cost has to be subsidised. Curbside pickup is a happy medium ground. Picking the groceries is cheap, and the expensive part (delivery) is handled by the customer using their time and their car.
  - hotpotamus 3y ago
    I enjoy walking the aisles (at HEB no less) to get ideas for what to cook and to pick out my own produce. Pick up is certainly a nice option too.
  - Jakob 3y ago
    Amazon Prime is a good counter-example that delivery does not need to be subsidised as the pro rata delivery cost decreases if 1. more people order, or 2. people order more items Both, 1 and 2 can be influenced by marketing and delivery can become a revenue instead of a cost center. Bonus points if that means that you can deliver from a cheap warehouse instead of an expensive supermarket.
    - michaelt 3y ago
      Prime delivery is subsidised by the margin on the goods, how else would 'free delivery' get paid for?
      - Jakob 3y ago
        Delivery cost increases logarithmically (one package more in the same truck) while revenue increases linearly when more people order / people order more. Increase in revenue outpaces delivery cost even for low margin items. Amazon makes more money with people on Prime, not less.
  - 3y ago

by mergy 3y ago

Fire-Dragon-DoL 3y ago

Did the bananas arrive any different?

infofarmer 3y ago
For the record, I'm currently in Saigon, and whenever I order delivery from the local Tops Market (around USD 1.5 fee, within two hours from order placement) they call me to say that bananas are either too ripe or too green and confirm if I still want them. Would love them to digitize this interaction. In response to another comment, the pickers have access to the backroom and frequently deliver better produce than would be available in-store.

a5seo 3y ago

I bought Webvan stock on their IPO day. Lost around $5k. (I was 22). Amazing service. Terrible business model: boil the ocean, premature scale, hire the head of Andersen Consulting as CEO. Every bad, nonsensical decision. And yet, the core was valid: a lot of people want their groceries delivered. When I went to business school a couple years later, the CMO of H-E-B spoke to my class (later, President) and I asked when they’d offer delivery. His response: “we believe people enjoy the experience of walking the aisles.” Well, Scott, whose parking lot is now 50% curbside pickup? Who spent 9 digits to acquire Favor? You’re welcome, you rich bastard. It’s a good thing the grocery business had enough margin for error for these people to come around to learn the correct lessons from Webvan.

bruce511 3y ago
Curbside pickup, and delivery are quite different economically, but I agree that "enjoy walking the isles" is nonsense. I'm not sure the economics of delivery (in a general context) work. Sure, there are folk who are time-poor, and cash-rich, and for them it makes sense, but for the rest the price either has to go up to reflect the cost, or the delivery cost has to be subsidised. Curbside pickup is a happy medium ground. Picking the groceries is cheap, and the expensive part (delivery) is handled by the customer using their time and their car.
- hotpotamus 3y ago
  I enjoy walking the aisles (at HEB no less) to get ideas for what to cook and to pick out my own produce. Pick up is certainly a nice option too.
- Jakob 3y ago
  Amazon Prime is a good counter-example that delivery does not need to be subsidised as the pro rata delivery cost decreases if 1. more people order, or 2. people order more items Both, 1 and 2 can be influenced by marketing and delivery can become a revenue instead of a cost center. Bonus points if that means that you can deliver from a cheap warehouse instead of an expensive supermarket.
  - michaelt 3y ago
    Prime delivery is subsidised by the margin on the goods, how else would 'free delivery' get paid for?
    - Jakob 3y ago
      Delivery cost increases logarithmically (one package more in the same truck) while revenue increases linearly when more people order / people order more. Increase in revenue outpaces delivery cost even for low margin items. Amazon makes more money with people on Prime, not less.
- 3y ago