I noticed that I can get almost anything on the Internet. But there is no major online grocery store. Sure there are a few here and there. What do you think are the challenges in this market?
When I was flatting in Australia a few years ago we used to buy groceries online as we had no car or nearby supermarket.
The biggest problem I've seen is that people don't trust someone else to shop for fresh things for them. Vegetables, fruit and especially meat have this problem. Tins and boxes of dry food are easier to trust.
In the UK the largest supermarket chain operates the largest online ordering/home delivery service. It has several rivals. The wide distribution of stores (able to supply the delivery component of the service) and the (relatively) low distances between store and customer's homes makes this a viable business opportunity.
assuming the question comes from the US - perhaps similar conditions apply in larger urban conurbations - but a national service might prove tricky.
Tesco (the supermarket in question) has some nice features. The online ordering site is linked to your loyalty card profile, and recent purchases either in store or online are made more prominent. Sainsbury's (also a large chain) may do the same with their loyalty programme, but I don't have experience.
Ocado is also worth looking at. Set up by 3 investment bankers, it sources its produce from one of the smaller, premium supermarkets (Waitrose) but has a (rather funky) purpose built distribution centre from which deliveries are made - rather than having a fleet of picker/drivers at retail stores across the country. Of course, this also limits their geographic coverage somewhat.
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[ 3.3 ms ] story [ 21.8 ms ] threadThe biggest problem I've seen is that people don't trust someone else to shop for fresh things for them. Vegetables, fruit and especially meat have this problem. Tins and boxes of dry food are easier to trust.
assuming the question comes from the US - perhaps similar conditions apply in larger urban conurbations - but a national service might prove tricky.
Ocado is also worth looking at. Set up by 3 investment bankers, it sources its produce from one of the smaller, premium supermarkets (Waitrose) but has a (rather funky) purpose built distribution centre from which deliveries are made - rather than having a fleet of picker/drivers at retail stores across the country. Of course, this also limits their geographic coverage somewhat.