\"Can Instacart Deliver?\" (p. 370) Questions: 1-Will this company succeed? 2-Wo

Question

"Can Instacart Deliver?" (p. 370)

Questions:

1-Will this company succeed?

2-Would you consider using this service yourself?

3-Please identify the issues, then take a position, pro or con and justify your position.

INTERACTIVE SESSION: ORGANIZATIONS Can Instacart Part IlI: Key System Applications for the Digital while Me The online grocery store Webvan was perhaps t most well-known flop of the dot-com boom 2001 failure led many pun clude that the online grocery business m now set of each sive drop-down menus either on the website or in the app, is organized by merchant and aisle to provide di ts -maximum order fulfillment efficiency. Invento variable I was is tracked for all of Instacart-affiliated merchants. As a personal shopper skims an aisle, bedecked in ever, W ebvan's downfall was due g a first-mover advantage strtey. Instaca becaus mainly a bright green T-shirt flaunting the Instacart leo brig over SI billion to build distribution arehouses, bought fleets of delivery trucks, and nvested heavily in marketing. Then, it offered ree deliveries on any size order, at virtually any our, at prices that trumped its brick-and-mortar cgy. It items can be selected for different orders placed at ge distribution different times. The software can also plan delivery c retailer rout and predict future customer orders. iPhone users can even connect to the Instacar ally ap from Yummly, the largest recipe search engin competitors. This was not a formula for ing profits in the world, and have the ingredients delivered in enerat time for dinner. The Instacart app is integrate with Google Now cards so that Android users can place orders for either delivery or pickup using a In recent years ot r companies are testing the waters again for online grocery sales. FreshDirect New York City has succeeded by combining token generated within the app. fresh local produc and custom-prepared Instacart's core competencies thus dictate its e, organic and kosher items, target market: the price-insensitive, convenience shopper. At first, item prices were marked up (20 percent in one sampling) and a $3.99 delivery fee charged. An Amazon Prime-like service called Instacart Express requires a certain volume of business and a $99.00 yearly fee in exchange for free meals with standard grocery tore fare. Established brick-and-mortar firms (the online entit took over as pure play online firms perished ertson's, Safeway and Peapod.com y for both Stop & Shop and Giant) The newest entrant, Instacart bypasses of warchousing and transportat ng dent contrac- be able to turn a profit by providing quality and selectio tors. These personal shoppers receive orders via the one app, fill them from grocery re aisles, and use their own vehicles to deliver e fellow "sharing at rock-bottom prices-w Instacart smartphone to to boot. Instacart is instead catering to shoppers who are willing to pay a premium to have both quality and selection economy" firm Uber, Instacart minimizes labor costs by requiring its personal shoppers to pay for By mid-2015 Instacart had 200 employees and 4,000 personal shoppers in New York, Los their own auto and health in Security contributions. Purportedl S15 and $30.00 an hour, depending on how quickly they can fill and deliver an order, most Inst shoppers work part-time on flexible schedules. and Social Angeles, San Francisco, San Jose, Washington DC y paid between Chicago, Boston, Austin, Seattle, Philadelphia ston, and Portland Oregon. It continues to grow. Grocery purveyors, Atlanta, Boulder, Denver, Hou EO Kroger, Super Fresh, Trader Joe's and Whole Foods to local specialty shops, such as Mehta believes Instacart's competitive advantage ld n Organic Grocer &Caf;é in LA, Marczyk single vendor and can combine items from multiple stores on one order, so product selection is truly customized. (Instacart uses special software that can track inventory across multiple supermarkets.) And since personal shoppers are on call around Fine Foods in Denv Green Zebra in Portlan are now welcoming Instacart as a way to expand their customer bases ahead of the full national roll out of Amazon subsidiary Amazon Fresh Instacart's 2014 revenue grew more than te the clock, customers neither ha hours in advance of delivery nor wait for a delivery window. In fact, customers can have their grocer list filled and delivered in under an hour! er 2013, with fourth quarter s dou le many analysts predict that match bling. Whi ng Walmart is unavoidable, Instacart is instead modi fying its business and Tomlinson's Pet Instacart's app provides a detailed map of each local establishment including store aisle contents The customer's grocery list, compiled using exten hint of addition

Explanation / Answer

1-Will this company succeed?

Yes, This company would definitely succeed, because-

2-Would you consider using this service yourself?

Yes, I would consider using this service myself, because-

3-Please identify the issues, then take a position, pro or con and justify your position.

Issues-

These are the con, because-

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