Instacart's logistics are redundant. It makes no sense to deliver goods to a high-rent location (a grocery store) that is optimized for merchandising, not picking, and then make a second delivery in an unrefrigerated vehicle to a customer's home.
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What you want to do is use a big warehouse in a low-rent location that is optimized for efficient picking (unlike a grocery store) and then use many refrigerated trucks to deliver to neighborhoods. The higher the density of orders, the cheaper the cost. UPS, but with a fridge.
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That said, it doesn't work in all markets. NYC is unique. The more car-oriented transport is, the less dense, the cheaper land is, the fewer rich people (salaries must be many times greater than deliverers), the less well this model works, today.pic.twitter.com/FqCJcsFaNs
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Instacart may well be purchased by some company with too much money but in the long run, what Instacart does will not work.
It's terrible logistics propped up by too much vc money.