Will the instant delivery businesses survive?
Kozmo failed during Internet 1.0.
Now, InstaCart, Amazon Prime Now, and UberEats are trying to compete.
This NYTimes write up analyzes why these companies may succeed: that make it pricey for instant delivery. Hidden Costs
My tests began with Instacart, which bills itself as an easy way to hire a shopper to pick up groceries at a store and deliver them to your door within a day. I immediately found some price differences: On a recent visit to Costco, I picked up a large pack of dental floss for $12.99. In the Instacart app, the same package from Costco was $15.89, or a 22.3 percent markup. Many Costco items inside the Instacart app were inflated by at least 20 percent, including olive oil and a carton of eggs.
I don’t think we are going to continue to pay high fees and prices. We will see push back from consumers.
I think the real question becomes:
How many items require urgent, real time delivery for the average consumer that warrants a 22% markup? IMHO, only medicine.