Recently, shopping services that deliver goods ordered online have been gaining in popularity with many emphasizing the idea of same day delivery. This has been especially important in the grocery business. Costco announced their own grocery service in October and Target said in December it would purchase the same day delivery service Shipt. Notably, Amazon acquired Whole Foods last year and earlier this month said that they would begin a same day grocery service in 6 cities. With so many corporations fighting to get into the industry, Walmart has also decided to expand its grocery deliver services from 6 cities to around 100 cities across the US. They plan to use the stores as places to fulfill customer requests and also plan to partner with Uber and other driving services for delivery.
Questions:
1. Do you think Walmart will be able to compete with Amazon in the grocery delivery industry?
2. Is Walmart's planned partnership with Uber and their large amount of stores give them a leg up in the race to control the grocery delivery industry?
3. How much of an impact will these new delivery services have on physical stores?
8 comments:
I think that a lot of people will take advantage of this delivery system because everyone is always so busy an need all the help they can get to save time. I'm not sure if Walmart will be able to compete against Amazon but I think that going with Uber will help them a lot. I think this is a good thing but it will hurt all the businesses that don't have delivery.
I agree with Julia that having Uber's help will aid Walmart in accessing more people. Furthermore, the fact that Walmart has such a large number of stores, should certainly help them out as well. I think that eventually, delivery service will cause physical stores to become more like warehouses, where it is only accessible to the suppliers (delivery service people), who then give it to consumers. I think this is going to be the case because considering the extensive amount of traffic, and the hassle of carrying bags of grocery items from the store, to your car, to your house, people will prefer the easy way out which is these delivery systems.
What with the closing of major toy retailer Toys R Us, I think we've already know the downward spiral that real life stores are headed into. Walmart getting into the delivery game now instead of later is a smart move. Establishing delivery networks now, while the physical store is still generating profit, will give them a better chance later to compete down the road.
Personally, my family gets a lot of regular day purchases from Targets home delivery system, and it is as good, if not better, than Amazon. Many items have complementary one-day shipping, which is definitely in the realm of possibility for Walmart to have as well.
With these already massive corporations planning to create a grocery home delivery service, many local grocery stores would probably start to have a very tough time with attracting customers. Walmart would probably become pretty successful with its grocery delivery service albeit less than Amazon. Partnering with Uber seems like a good idea, but I do not think that this relationship will last long. For this partnership to last long, both companies need to profit, meaning that the price of the groceries would increase. As we learned in economics, an increase in price would lead to a decrease in demand. But depending on the price, Walmart and Uber could create a profit.
I don't really know if they will be able to compete with Amazon because this hasn't really started yet. It's too soon to tell. Uber's help will aid Walmart in accessing more people. Just like Uber eats and Doordash, they will be able to serve more people. I think that it'll benefit people who don't have cars to have their groceries delivered. Not a lot of Stores deliver groceries, and also it can take up to a day to have your groceries delivered, but if Walmart is partnering with Uber n all, then they can get their groceries in about an hour or 2, so it will give them a leg up in the race to control the grocery delivery industry. I don't think that it'll have a big impact because there are some people who like shopping, and there are people who do last minute shopping, so they will obviously go themselves to the store.
Like previously mentioned, I think Walmart will be able to compete with Amazon, although Amazon will likely be more popular. I suppose Walmart has to potential to do well if they have a planned partnership with Uber, because I'm relatively certain that Uber Eats has done pretty well. I think that there is definitely a demand for fresh delivered groceries because shopping for groceries requires a chunk of time. In regards to Alex's point that the demand may decrease if prices go up, my perception is that people will be willing to pay a higher price in order to save some of their own time and energy.
I think that Walmart will not necessarily compete with amazon, but will be able to profit off of this service. The people that already use Walmart as their department store of choice, will continue using it, and will use the online delivery service, although I do not think that Amazon and others will lose customers to Walmart.
Like what everybody else already mentioned, Walmart's delivery service won't really hinder Amazon's services since they are already expanded well beyond Walmart's reach. I think Walmart benefits more by having a local side to their delivery service which is helped even more by a potential option of Uber for transportation, but other than that, amazon takes the cake in the end. I think that as the number of delivery services per store increases, stores will likely start to shut down since customers will find the convenience of shopping for groceries from your home a lot better than driving to stores for them.
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