scheduled grocery delivery – Whereas the average grocery delivery service used to be next-day or later, a growing number of chains are looking to provide a same day delivery service, to better compete with the leading grocers. What do the best grocery delivery services offer? Having to pick, stage and ship fresh produce and non perishables, refrigerated and frozen foods in all different shapes and volumes, while managing the exceptions that inevitably occur and maintaining, and doing all of this while meeting SLAs, is untenable using strategies and service standards from even a few years ago. With delivery volumes higher than ever, the challenges grow exponentially. As grocery delivery became a commodity overnight, focus grew on the quality of delivery: speed, convenience, product availability, safety, and costs. With online sales becoming an increasingly important revenue channel, chains that had limited grocery delivery services, or which relied on a single delivery provider, suddenly realized they needed to expand in quality and quantity: reach more customers, with more delivery services, with a greater number of fleets. Grocery delivery’s compound annual growth rate (CAGR) is now projected to grow by 29% from 2020 to 2024.It is estimated that the pandemic accelerated the food sector’s reliance on eCommerce by 3-5 years in just a few months. households now rely on eCommerce to purchase groceries. reached $9.3 billion in sales in January, according to one survey (Brick Meet Click / Mercatus). COVID’s impact on grocery delivery servicesĬOVID’s impact on grocery and online grocery delivery was immediate: And since online sales were a relatively small percentage of overall sales, chains didn’t focus on developing a better solution that put their fulfillment services under their control. The investment in new technology to create a reliable delivery solution was simply too great for all but the largest grocery chains, especially as demand was relatively low. Until recently, most grocery chains did not have many options for grocery delivery, unless they wanted to invest significant time or resources into building or contracting other solutions. grocery companies provided these services solely through Instacart. pickup, delivery windows, taking drivers and trucks into account to ensure accurate times, inventory in specific locations, etc.), to the order processing phase (who picks the orders off the shelves, where the packing and staging happens and when), to the actual delivery or pickup (having the proper fleet on hand, drivers, communication with customers regarding delays or changes, etc.).īack in 2019, market penetration for grocery delivery was as low as 4.5% in the U.S., and still in single-digits in most countries. It’s a complicated process that takes into account a wide variety of factors from the checkout process (delivery vs. Grocery delivery covers the entire process of fulfilling orders purchased online or in store, and having these items delivered to them. How have grocery delivery services changed?
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