Thursday, May 21, 2020

AMAZON SAME DAY DELIVERY VS FOOD DELIVERY. ON DEMAND

Amazon vs Grubhub, DoorDash, and others. On Demand. Some talk about Amazon and food delivery as to being similar.  And while I am at it, what does this mean to UPS, FedEx, and USPS?

Amazon does not compare to food delivery. First, and most important, this is about customer expectations--not what a retailer or restaurant wants to do. Amazon already has volume/size as to orders and as to size of warehouses. It DOMINATES e-commerce. 

The shift has been to same day. Using technology to increase order throughput makes that possible as its model expands from two day, to one day, to same day. 

And remember, when they first said two day, they were questioned and mocked. But they did--using a new supply chain management. By doing it, they turned retail on its head and created a new business--e-commerce. No longer an ignored minor sales niche. 

Okay--that's Amazon. Grubhub and others are an on-demand model where there is no volume. A customer. A restaurant. An order. And that is the problem with gaining profitability. The Onesies. 

Amazon' large activity vs Grubhub onesies. An interesting thing to watch is how BigA handles the delivery shift--its own delivery service plus UPS & USPS to same day. How to blend it all--including Deliveroo? Or transition away from UPS/USPS for same day and eventually for most of it. Just some thoughts. 


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