Food delivery as a necessity Luise Bergmann, Jana

Transcript:Food delivery as a necessity Luise Bergmann, Jana:
Food delivery as a necessity Luise Bergmann, Jana Weile, Jakob Roessling, Georg Mayer Instacart 2 How can Instacart be able to sustain its long-term growth while continuing to gain patronage from both, partners and customers? Today’s agenda 3 01 Recommendation 4 Your way to success starts with the transition process right away 5 1 2 3 02 Key issues 6 Two major challenges need to be solved 7 7 1. Sustainable Growth 2. Trustworthy relationships 03 Situation analysis 8 Understand the needs of your retailers in order to improve your relationships with them 9 Needs Knowledge and data of customers E- commerce infrastructure Retailer Revenue & growth Issues low margins/high costs Pressure from competitors Trust problem Customer needs are a major factor 10 Needs Fast/cheap delivery Pick up service Shopping Highly individualized suggestions Customers Information about products Issues High amount of advertising Overload by too many products Difficulties with apps/websites 11 Needs High margin digital business partnerships with reatiler Instacart Revenue & growth Issues Difficulties with stuff Pressure from competitors Loss of customers Whether the business model is promising or not depends on solving four main challenges Amazon Doordash Own warehouses Fast delivery Huge market power Difficulties regarding stuff Endanger local stores Own warehouses Fast delivery Dont offer cooporations with retailes Focus own revenue Competitors Retailers need to corporate with you in order to stay in the market 13 What is your unique added value for your partner? Win-win partnership Compete with amazon Same-side effects (advertising/customers) Ecommerce infrastructure Data sharing App Digital expertise 04 Strategic alternatives 14 For long-term success you have to make important decisions ensuring sustainable growth and trustworthy relationships 15 The first decision is whether to grow digitally or physically 16 Sustainable growth App Advertising integration Physical Digital Change focus of this alternative ~ Dark warehouses Own stores No own physical presence ~ Keep your focus on your online business, but start opening up own warehouses for efficiency gains 17 Digital Costs Physical Evaluation Evaluation ~ Poor Medium Good Feasibility Efficiency ~ ~ ~ ~ Profitability Enhance the strengths of your app and further integrate advertising 18 App Costs Advertising integration Evaluation Evaluation ~ Poor Medium Good Feasibility Efficiency ~ ~ Profitability Expand physically by establishing dark warehouses 19 Dark warehouses Costs Own stores Evaluation Evaluation ~ Poor Medium Good Feasibility Efficiency ~ ~ Profitability ~ No own physical presence Evaluation ~ Second you have to decide