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By building many warehouses before proving the idea works, they appear to also be repeating Webvan's greatest error.

by cjensen 14y ago

jlgreco 14y ago
According to wikipedia, Amazon has been operating Amazon Fresh since 2007 (the article draws a direct comparison: "It is reviving the business model of ordering groceries online for home delivery first popularized by such companies as HomeGrocer.com and Webvan in the late '90s.") and seems to now own Webvan. I'll leave analysis up to somebody else, but I find this interesting. http://en.wikipedia.org/wiki/AmazonFresh http://en.wikipedia.org/wiki/AmazonFresh http://en.wikipedia.org/wiki/Webvan http://en.wikipedia.org/wiki/Webvan
alanfalcon 14y ago
They are offering same day delivery in some markets today, including Las Vegas. I've used it twice, with the $10 same day delivery being less expensive than other expedited shipping options. It was very cool having a courier drop a package at my door with my purchase the same day I bought it. Even with $10 delivery the final price was cheaper than buying from a retail store at retail prices. I think with these test markets, Amazon has proven to themselves already that the idea works. I know that I'm very happy with the results so far!
timee 14y ago
They've had same day delivery (local delivery) for quite a few product categories in the Seattle area for some time with Amazon Fresh trucks. I've bought a book recently with same day shipping for an additional 3.99 (Prime) that was on my door step when I arrived at home. http://www.amazon.com/gp/help/customer/display.html?nodeId=200105970 http://www.amazon.com/gp/help/customer/display.html?nodeId=2...
Ixiaus 14y ago
I disagree here. Amazon has clearly proven the market with their Amazon Prime membership; Amazon has massive mind share (I don't even know what Webvan is/was); Amazon will also only improve operating efficiency by building these warehouses with the automated inventory fulfillment system (which has the nice side-effect of making customers really happy) which over a long period of time will pay for itself (not discounting the happy customers buying more and more products through Amazon).
MartinCron 14y ago
They've been working on making the idea work in Seattle for years now. It has been fascinating to watch the many different iterations and experimentations. To say that they're just building warehouses isn't even close to correct, they are proving their business model, startup-style.

By building many warehouses before proving the idea works, they appear to also be repeating Webvan's greatest error.

by cjensen 14y ago

By building many warehouses before proving the idea works, they appear to also be repeating Webvan's greatest error.

According to wikipedia, Amazon has been operating Amazon Fresh since 2007 (the article draws a direct comparison: "It is reviving the business model of ordering groceries online for home delivery first popularized by such companies as HomeGrocer.com and Webvan in the late '90s.") and seems to now own Webvan. I'll leave analysis up to somebody else, but I find this interesting. http://en.wikipedia.org/wiki/AmazonFresh http://en.wikipedia.org/wiki/AmazonFresh http://en.wikipedia.org/wiki/Webvan http://en.wikipedia.org/wiki/Webvan

alanfalcon 14y ago

They are offering same day delivery in some markets today, including Las Vegas. I've used it twice, with the $10 same day delivery being less expensive than other expedited shipping options. It was very cool having a courier drop a package at my door with my purchase the same day I bought it. Even with $10 delivery the final price was cheaper than buying from a retail store at retail prices. I think with these test markets, Amazon has proven to themselves already that the idea works. I know that I'm very happy with the results so far!

timee 14y ago

They've had same day delivery (local delivery) for quite a few product categories in the Seattle area for some time with Amazon Fresh trucks. I've bought a book recently with same day shipping for an additional 3.99 (Prime) that was on my door step when I arrived at home. http://www.amazon.com/gp/help/customer/display.html?nodeId=200105970 http://www.amazon.com/gp/help/customer/display.html?nodeId=2...

Ixiaus 14y ago

I disagree here. Amazon has clearly proven the market with their Amazon Prime membership; Amazon has massive mind share (I don't even know what Webvan is/was); Amazon will also only improve operating efficiency by building these warehouses with the automated inventory fulfillment system (which has the nice side-effect of making customers really happy) which over a long period of time will pay for itself (not discounting the happy customers buying more and more products through Amazon).

MartinCron 14y ago

They've been working on making the idea work in Seattle for years now. It has been fascinating to watch the many different iterations and experimentations. To say that they're just building warehouses isn't even close to correct, they are proving their business model, startup-style.