How can retailers such as Walmart make grocery home delivery profitable? Do you see any retailer and/or service as the likely winner of the grocery home delivery competition?
Interactive Edge’s CEO, Zel Bianco comments:
It’s a tough problem that will take considerable trial and error to get right. It may never happen if the current model of having no cost to the consumer holds. I think that Peter Charness has a good point. Grocers do have a slight advantage to deliver cold items over Amazon due to the proximity of their stores as opposed to Amazon’s distribution centers, but will Amazon somehow open more, smaller distribution centers to fix this? It’s a logistical nightmare but one that Amazon has deep pockets to solve.
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