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Old 1st December 2015, 12:43 PM   #1

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Imagine a business that would work with grocery stores to allow them to deliver? Pretty much just a bunch of drivers that take orders from grocery stores and take them to peoples houses for a 15% charge? I'll have a better fee later but that just shows how the business should work. Good idea? Bad idea? comments?

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Old 13th December 2015, 01:31 PM   #2

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I know there is a market out there for personal assistants. I have typically heard of them working with families of successful business men and women or professional athletes.

I think your idea may work for individuals/families that are not quite "high rollers" and in need of a full time assistant but may have the money to outsource some of the things that pull them away from the things that they enjoy.

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Old 13th December 2015, 05:37 PM   #3
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It might work in some locations. I already have Amazon and Safeway providing the same service and they have a big name behind them, so unless your prices are significantly lower I would not be a potential customer.

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Old 13th December 2015, 08:46 PM   #4
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It's not a bad idea but I think the problem lies in larger and more well-funded companies already moving on this. As was mentioned: Amazon and Safeway already are doing this to some extent.

Stop & Shop (not sure if everyone is familiar with them but they're a relatively large supermarket chain in the Northeastern USA) offer it as well- at least in some locations.

The idea is solid but I think the future of the service will lie more in the Supermarket themselves offering it rather than an independent service.

Before a ton of restaurants started delivering I would see companies sprout up from time to time that would offer to pick up food from local restaurants and deliver it to you for a small fee. I've seen less and less of that as more restaurants started offering free delivery.

The challenge lies, I think, in being able to offer the service at a price that's profitable to you but doesn't pass too high of a markup on to the customer. Take your example of 15%- That would mean that a $200 grocery bill (on the low end of the average weekly grocery bill in the USA) would net you $30. That $30 has to pay for the time it takes to go to the store, do the shopping, load the bags, deliver them, and the gas it takes to get everywhere. I'm not sure you could charge much more than a 15% markup before it gets to be restrictive so how much of that $30 is really profit? Not to mention that while that may be the average grocery bill there will be times when it's lower. You'd have to set a minimum of at least $100 I think.. so your share goes down to $15.00 in that scenario.

I'm sure the idea would be to have more than one order being filled at a time so it'd be volume-based and I'm sure you could probably make it work in certain areas but as more and more grocery stores start offering their own delivery services and with the increase in popularity of meals by mail (Blue Apron for example) I wouldn't put too much stock in the long-term future of the idea. At least in the way you're presenting it.

Last edited by MyLaunchKits; 13th December 2015 at 08:50 PM.
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Old 4th January 2016, 12:46 AM   #5
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There is a lot of such type of service which is common these days. The whole idea is to get the best plan and coordination into action. The employees should also be highly reliable. If you wish to get more insights on how to start, Piterion offers very good consulting for finance and PLM.

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