Great one, Kevin. Very interesting space that requires really rigorous process for operational output. We have some in Toronto, like Ninja. Fewer SKUs and well placed MFCs means a model that can work - in very dense urban centres. Grocery delivery is not the same as meal delivery, the latter can get slightly better margins. At what point does the consumer choose to just go to a store i.e. is the marginal convenience of delivery worth the fee / somewhat inflated prices? Quality is also key.
Thanks, Nick. Appreciate it. All great points. It will be interesting to see how this all plays out. My knee-jerk reaction is to be skeptical that others can be successful in cheap, quick grocery delivery if Amazon can't be, but these models are built from the ground up to try.
Great one, Kevin. Very interesting space that requires really rigorous process for operational output. We have some in Toronto, like Ninja. Fewer SKUs and well placed MFCs means a model that can work - in very dense urban centres. Grocery delivery is not the same as meal delivery, the latter can get slightly better margins. At what point does the consumer choose to just go to a store i.e. is the marginal convenience of delivery worth the fee / somewhat inflated prices? Quality is also key.
Thanks, Nick. Appreciate it. All great points. It will be interesting to see how this all plays out. My knee-jerk reaction is to be skeptical that others can be successful in cheap, quick grocery delivery if Amazon can't be, but these models are built from the ground up to try.