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ECT News Community   »   E-Commerce Times Talkback   »   Re: Online Grocers Check Out of Cities, Into Wealthy Neighborhoods



Re: Online Grocers Check Out of Cities, Into Wealthy Neighborhoods
Posted by: Michael Mahoney 2001-08-21 14:02:57
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If you live in an area where online grocery service does not exist, you might need to be
more patient than ever. In the new age of online delivery, Net grocery providers have become
extremely cautious not only about what cities they will venture into, but even which
neighborhoods within a given city they will try.


"We tend to still be thinking of online groceries in a mass market approach, but
you can't look at it that way," Gartner analyst Kevin Murphy told the E-Commerce Times.
"The demand is much spottier than that. It will be tested and rolled out store by store,
by chains that have the best collection of stores in upscale neighborhoods."


Re: Online Grocers Check Out of Cities, Into Wealthy Neighborhoods
Posted by: Mark Weindling 2001-08-21 21:31:48 In reply to: Michael Mahoney
The problem with all of the existing models of home delivery of groceries is the business model is WRONG!!!
Although I have been a voice in the wilderness as it pertains to this subject, I know why everything has failed to date.
Webvan came the closest to the correct business model, but got bogged down in the system--they created "A Field of Dreams" and lost sight of the true needs of the business.
Home delivery of groceries requires a change in consumer shopping behavior. State of the art distribution systems doesn't address this. Nor will the "limited" area delivery, as used by Ahold and others.
A recent Kiplinger letter discussed home delivery of groceries and they determined that a need continues to exist. Unfortunately, previous attempts by the likes of Webvan, Peapod, HomeGrocer.com, etc. didn't satisfy that need.
Traditional grocers will view home delivery as an add on business, never a stand alone business. They have billions of dollars invested in the existing business model, and have no desire to go into competion with themselves.

Unfortunately, Wall Street raised far too much capital on faulty business models. Wall Street became enamoured with names of individuals, e.g. Lou Borders, or highly automated systems, and they didn't do their homework.
...The result--no capital will be raised in order to make this concept the roaring success that it can be if done properly, and it will be a long time,if ever, that home delivery of groceries will be available to all, including those most in need (hint:it isn't the wealthy--check the number of taxis going to grocery stores and waiting)


Re: Online Grocers Check Out of Cities, Into Wealthy Neighborhoods
Posted by: Andrew 2001-08-21 15:28:21 In reply to: Michael Mahoney
Who is the online grocer in San Diego?

Re: Online Grocers Check Out of Cities, Into Wealthy Neighborhoods
Posted by: Eugene Johnson 2001-08-21 14:03:54 In reply to: Michael Mahoney
There is actually online grocery delivery available in Houston through GroceryDrop.com
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