Contents:

    Listen to this episode on your phone here.

    The convenience delivery space is growing! These companies offer integrated and offer ultra-fast delivery – but who’s in the best position to dominate?  I chat with Matt Newberg, the founder of HNGRY, to talk about the grocery and convenience delivery spaces. We’ll talk about the traditional grocery players, convenience companies, and who could come out ahead.

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    Intro to Matt Newberg

    • Founder of HNGRY
    • Analyzes trends related to food delivery, technology and more
    • Been on RSG several times about cloud kitchens, pandemic growth, etc.

    Major Players in the Grocery Delivery Space

    • Mass retailers (Walmart)
    • Amazon
    • Instacart
    • Best position right now? Amazon!

    Convenience Delivery

    • 1-2 hour delivery – or even 30 minutes!
    • Vertically integrated – helps get companies to profitability
    • Not necessarily impressed by some of the newer companies!
    • Can be a tough and competitive space

    Convenience vs Delivery

    • Convenience historically has been planned – not a stock up, but a run out to grab X
    • GoPuff, DoorDash, newer services
    • Space is hot right now
    • Need to expand to succeed though, like grocery delivery – remaining in big cities won’t be sufficient

    Full Integration Model – Can it Be Profitable?

    • GoPuff already profitable
    • Basket sizes significantly higher!
    • Success will depend on building an emotional connection with the customer, not so much speed
    • Selection will be important, also entering smaller markets (not NYC!)

    Future for Convenience Delivery

    • GoPuff trending toward success
    • Focus on high AOVs
    • Brick and mortar may help foster that emotional connection

    Outro

    • Thank you to Matt for coming on the podcast! If you’re interested in this topic, make sure to check out Matt’s podcast, too

    Show Notes

    Harry Campbell

    Harry Campbell

    I'm Harry, the owner and founder of The Rideshare Guy Blog and Podcast. I used to be a full-time engineer but now I'm a rideshare blogger! I write about my experience driving for Uber, Lyft, and other services and my goal is to help drivers earn more money by working smarter, not harder.