Friday, August 21, 2015

Food Delivery Needs More Innovative Ideas to Grow

PlatedA big question in home delivery has been, when 
are groceries going to catch up with online books, 
clothes, and shoes? For a long time, the costs and 
logistics has kept the perishable food and beverage
 deliveries lagging other e-commerce efforts. 
Others have said, shoppers haven't gotten over 
the perceived hurdle that fresh groceries shouldn't be delivered. 
According to a recent Business Insider Intelligence report, only about 1% of all U.S. consumers do 
their grocery shopping online. 
Despite that, many start-ups have ignored the barriers, and have innovated their way onto shoppers 
tables -- By offering a service that brick and mortar is not. Companies like Plated, Blue Apron, and 
Sun Basket deliver all the pre-proportioned fresh ingredients for shoppers to cook chef-inspired meals
 in their kitchens. 
Perhaps these innovative offerings are part of the reason why online grocery sales are forecast to 
grow at a 21.1% compound annual growth rate between 2013 and 2018, to nearly $18 billion.  While 
traditional grocery sales are expected to grow only 3.1% annually during the same period based on
 the same report by Business Insider Intelligence. 
More competitive ideas in food delivery will accelerate food delivery growth. The question is: Will more 
traditional retail get in the food delivery game? And will shoppers see a time when food delivery is as 
normal as online shoe shopping? 

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