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Comment by free2rhyme214 | Hacker News Reader

Why Instacart over Amazon Fresh or Google Shopping Express?

I saw their product when it first launched but I didn't see a distinct advantage.

I think it's pretty obvious that Instacart's exit strategy is to make some great technology that either Amazon or Google will buy-out.

There is no way they will survive as a company long-term trying to compete against either of those two. It's a low-margin business with expensive, labor-intensive components that won't scale efficiently over time. They just need enough money to last long enough to convince Amazon or Google to buy them at a premium so that the investors make their 10x.

Not the best strategy in my opinion.

"I think it's pretty obvious that Instacart's exit strategy is to make some great technology that either Amazon or Google will buy-out."

I think they will make a play to open up their shop and delivery service via API to eventually allow stores to use them as a full end-to-end delivery service and sales channel.

The other play is to do what DoorDash is doing with focusing on the core logistics/driver infrastructure and route/scheduling optimization software. Doordash is generic enough to go beyond restaurant delivery and become an open alternative to last-mile courier services in the market today. It's basically Uber cargo but I think they could do so much more by making it an open service that any business could use to handle on-demand delivery to their end users. If Trader Joes wants to provide delivery, they just need to be able to ping DoorDash with an address and have a box ready when a driver arrives. This offloads the liability and capital costs associated with having your own drivers and delivery trucks, etc.

That's not our exit strategy. We're building a long term business here.

My reason is simple. I use Instacart frequently. When I first evaluated Google Shopping Express, it didn't seem possible to buy basic perishables such as milk and orange juice (and I don't mean the canned kind that sits on shelves at room temperature). That's pretty much a killer if I can't buy fresh milk and orange juice.

And then when they offer those products at lower prices?...lol

Not everyone is driven by price. Sometimes convenience trumps price. I use the delivery services so I don't have to waste an hour at Staples to buy one item.

Faster delivery

Bigger selection

Speak directly with your shopper

The only way I can see this as profitable is at a huge markup or they start stocking items themselves just like a grocery store does. I think people care less about what grocery stores the shopper goes to than getting the correct items. They should just have a food warehouse and stock stuff.

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