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Why does Amazon and Google think they can succeed in the food delivery business, when Webvan and HomeGrocer proved it was not a viable business model?

  • What is different today compared to ten years ago? Admittedly, some grand assumptions are being made here and, of course, I don't expect Amazon or Google to respond in any official capacity.  I am therefore opening the question to speculation. http://en.wikipedia.org/wiki/Webvan and http://en.wikipedia.org/wiki/HomeGrocer were two well-funded companies in the late 90s that first tried a large-scale internet-based home food delivery business.  They both did not make it.

  • Answer:

    They are trying to get Americans the  level of service standard in Latin America for the last 20 years. Horst Paulman , a Chilean, came up with the idea of home delivery at the time that women entered the job market. He went from being a farmer to owning several hundred supermarkets all over South America. The fact that home delivery has never been a priority for most US supermarket chains plus 2 failed start-ups ignores the reality that people want this service and that it has proven itself in Korea and South America. In Korea subway stations have photo-realistic recreations of supermarket aisles and using your mobile you can scan items for same-day home delivery. I asked Whole Foods how much they wanted for home delivery and they stated $40/hr to find and collect my items,plus $40/hr for delivery plus the cost of the food. By contrast Google and Amazon have free or nominal  delivery.

Fred Landis at Quora Visit the source

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