Grocery eCommerce Market

Part
01
of two
Part
01

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.

Shipt

  • 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.
  • 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

  • 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.

Takeoff Technologies

  • 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.


Part
02
of two
Part
02

Grocery eCommerce Market: Pat 2

Sedano's is a Hispanic-owned supermarket that has 35 different locations situated in Florida. Cleveron AS is a robotics-based entity that specializes in software and hardware services that facilitate parcel terminals, along with pick-up solutions. Alert Innovation is a robotics company that aims to utilize automation to transform customers' shopping experience and how retails typically operate.

Sedano's

Description

  • Sedano's Supermarket was first established in the year 1962 and is headquartered in Hialeah, Florida.
  • It began as a neighborhood grocery store, and today, it is the country's largest Hispanic-owned supermarket chain.
  • The supermarket chain functions as a family company with about 35 establishments in Florida.

Business Model

  • Sources of revenue for Sedano's include the sale of food items, personal care products, household products, and pet supplies.
  • Its intended customer base is Latin Americans and consumers with a desire for Latin taste.
  • The products offered to customers include homemade Latin meals, cafecito, and general grocery and household items.

Service Offerings

  • Sedano’s service offerings include a variety of Hispanic food items.
  • Its company website also offers customers and viewers traditional Latin recipes that can be prepared with products sold at one of its stores.
  • Through its partnership with Takeoff, the company also offers an online shopping experience for customers seeking to order online and pick-up their items at a Sedano's location.

Financial Information

Grocer e-Commerce Partnerships

  • Its partnership with Takeoff Technology enables online shopping and the introduction of the world’s first robotic supermarket.
  • Shoppers issue their orders through the mobile app supported by Takeoff Technology, and orders become available for pick up from the nearest store locations.
  • Takeoff's AI robots are capable of assembling orders consisting of a maximum of 60 items in a short amount of time, which is a fraction of both the cost and speed of manual selection.

Cleveron AS

Description

Business Model

  • Cleveron AS generates revenue through the sale of robotics-based parcel, as well as e-commerce collection and pick-up, solutions.
  • Cleveron’s customer base includes large wholesale and retail enterprises, such as Walmart.
  • Products and services offered to the market include robotics-based parcel terminals, click and collect pick-up solutions, outdoor automated parcel terminals, product design, and assembly and installation.

Service Offerings

  • Cleveron's specialties include software, support and maintenance, and hardware.
  • Products offered by Cleveron include automated smart lockers, parcel robots, and robotic based parcel terminals.
  • Cleveron’s service offerings include products design, hardware engineering, software development, assembly and installation, repair and maintenance, and warranty.

Financial Information

  • According to D&B Hoovers, Cleveron's estimated annual revenue amounts to $62.59 million.
  • The company is headquartered in Viljandi, Estonia.
  • The company provides wholesale and retail giants, such as Walmart, with innovative solutions to facilitate e-commerce and logistics.

Grocer e-Commerce Partnerships

  • E-commerce partnerships made by Cleveron AS include partnerships with Walmart stores.
  • Cleveron’s partnership with Walmart was partly driven by the need to tap into the US online retail market.
  • Walmart currently has over 700 automated pickup towers for shoppers to collect their online orders.


Alert Innovation

Description

Business Model

Service Offerings

Financial Information

Grocer e-Commerce Partnerships


Research Strategy:

Our research began by visiting Sedano's Supermarket's website, where we gathered information on a description of the company, how it generates revenue, its business model, customer base, and products and services offered. Additionally, we found a press release discussing its partnership with Takeoff technologies. We found information on Sedano’s finances, e-commerce grocers served, and geographic locations on D&B Hoovers and the press release of its partnership with Takeoff Technology, which also contained data on its e-commerce partnerships.

Next, we visited the Cleveron's official website and LinkedIn profile to gather a general description of the company, how it generates its revenue, its products and services offered, and its customer base. We then used D&B Hoovers to obtain data on Cleveron's revenue, and the company’s official website provided information on its geographic location, products, and e-commerce grocers served, as well as insights into its partnership with Walmart. To gather further information on the partnership, we conducted a general search and recovered a press release from Estonia World.

Finally, we searched Alert Innovations' official website, as well as Pitchbook and its LinkedIn profile, to gather data on a description of the company, services offered, etc. We consulted American Inno to find information on Alert Innovation's business model and found a press release on the marketing of its automated robots. Afterward, we recovered details on Alert Innovation finances, e-commerce grocers served, and geographic locations on ZoomInfo and the company’s LinkedIn profile, while we obtained information on its e-commerce grocer partnership from a press release.
Sources
Sources