Grocery eCommerce Market: Part 1
Shipt, InstaCart, and Takeoff Technologies are providing grocery solutions to help grocers and shoppers. Both Shipt and InstaCart focus on a membership business model whereas Takeoff Technologies focuses on e-commerce, retail partners, and grocery distribution facilities.
- It was launched in Birmingham, Alabama in 2014. Its mission is to "simplify lives and serve members, shoppers, and communities by offering convenience and freedom."
- Shipt is present in over 260 cities and works with shoppers who can set their schedules and are continually striving to enhance member experiences within a newly implemented rating system.
- Shipt is an online subscription-based marketplace in which users pay for a membership that costs $99 per year or $14 per month.
- However, in delivery cost, it is free for members on orders over $35 otherwise a $7 delivery fee is charged to equate the costs of shopping and delivery.
- Shipt members are also expected to pay $5 from their in-store purchases. A service fee is also added when buying from select retailers.
- Overall, Shipt generates sales through subscription and a fee-based system.
- They provide a mobile app and website for its members in which they can order products from their local stores.
- They also have an app that allows members to contact their local stores via text to make adjustments and get live updates from the store's aisles.
- The company reached $1 billion in revenue in 2018, which represented a 50% growth rate compared to the previous year.
- Shipt was acquired by Target for $550 million in 2016.
- ABC Fine Wine & Spirits, Costco, H-E-B, Piggly Wiggly, My Web Grocer, Mercatus, Meijer, Lowes Foods, and Winn-Dixie are among Shipt's partners.
- InstaCart was founded in 2012 by Apoorva Mehta, Brandon Leonardo, and Max Mullen. It specializes in delivery, delivery service, e-Commerce, grocery, and same-day-delivery.
- InstaCart has also acquired several other companies such as Unata and Wedding Party.
- Users pay a $149 yearly membership that includes a free two-hour delivery on orders over $35. Alternatively, members could also pay a $7.99 fee for a one-hour delivery and $5.99 for a two-hour delivery.
- The company also has a 5% additional fee for their service and a busy pricing delivery fee may apply whenever the company experiences high demand for delivery time.
- Instacart provides an online platform to help users to shop for items available in their local grocery stores.
- They also offer pickup services across the United States.
- The company registered a revenue growth of 233% between 2016 and 2017.
- In 2018, Instacart had 70,000 shoppers, 300 retailers, and 200 pickup towers.
- Instacart has partnered with over 300 retailers and serves 4,000 cities across North America. Their large retailer partners are Walmart, Safeway, Aldi, Kroger, H-E-B, CVS, SuperValu, Albertsons, Food Lion, Publix, Whole Foods, Costco, and Vons.
- Their small retailer partners include Pavilions, Giant, Zabars, Tony's, Jewel-Osco, and Plum Market.
- The company was founded by José Vicente Aguerrevere and Max Pedró in 2016.
- It specializes in ecommerce, retail, grocery, logistics, technology, and automation.
- Their primary revenue comes from its e-commerce, retail partners, and grocery distribution facilities.
- Bloomberg said that Takeoff Technologies is a distributor of consumer staples and wholesaler for food products.
- It provides an application for eGrocery, distribution, support pick-up locations, and give retailers the option to turn their existing stores into micro-distributio hubs.
- Takeoff reported that they generate between $30 million and $50 million in annual sales.
- The co-founder and president Max Pedró has noted that "by the end of 2020, Takeoff will have accumulated at least $2 billion in gross merchandise volume for our retail partners."
- The 50 micro fulfillment center project is expected to process $1.5 billion of e-commerce sales per year according to Takeoff Technologies' Lucia Brower.
- They partnered with Albertsons, Ahold Delhaize, Wakefern, and Sedano’s in the US. They also signed a partnership with Woolworths in Australia.