Amazon Fresh: (New York, Berlin, Tokyo, and London )

Amazon gained notoriety when it began field-testing online grocery delivery in 2007 in downtown
Seattle.

roll-out to other US cities began six years later, in 2013.

the company went from an annual fee that bundled Amazon Fresh with the popular Amazon Prime
membership, to a slightly cheaper monthly fee that includes unlimited deliveries and requires Amazon
Prime membership, which must be purchased separately. This means that, to use Amazon Fresh,
consumers must have an Amazon Prime membership.

The goal is for the thin gross margin of sales to cover slightly more than the fixed costs (rent, utilities,
store employees), for a profit.

The more orders there are, the more a company has to pay for picking, packing, transport and delivery.
There are few avenues to profitability.

he company has a supply chain configuration that is different to its competitors. Other players generally
send order pickers into stores, who pick directly from store shelves, either in partnership with, or as
business units of, grocery chains. Amazon Fresh uses replenishment centers just outside urban centers.
This allows Amazon to potentially complement the usual offer catalogue with up to 500,000 non-
consumable items for delivery with Amazon Fresh.

Amazon can potentially leverage Amazon Fresh in ways competitors cannot, by helping to absorb the
warehousing costs and sending more full trucks on the road.

The service that is starting in Bengaluru on 23 August will soon be rolled out to customers in other cities.
Amazon Fresh lets customers place orders across a selection of over 5000 fruits & vegetables, dairy,
meat, ice-creams, and dry grocery like staples, packaged food, personal care and home care.

Through the Amazon Fresh store on Amazon.in, Prime members will get exclusive access to the fastest 2
hour delivery slots for ₹49. All customers get convenient 2-hour delivery slots from 6 AM to midnight
with free delivery for orders above Rs. 600. Orders below Rs. 600 will be charged a delivery fee of ₹29.

These ultrafast deliveries are powered by Amazon’s Prime Now service which was earlier available only
on the separate Prime Now app. The Prime Now app, will continue to serve customers in Delhi/NCR,
Mumbai, Bengaluru and Hyderabad

Unlike US,No additional membership fees on top of Prime Membership in India

Delhi-NCR, Mumbai and Hyderabad next month.

Consumers can choose an “Attended Delivery,” where groceries are delivered in plastic bags and must
be received by the consumer, or an “Unattended Delivery,” where the food is delivered to a consumer’s
doorstep in temperature-controlled tote bags.

Amazon’s own warehouses are strategically placed, moving closer and closer to main metropolitan areas
and city centers. As a result, it uses a pure push strategy for the products it stores in its warehouses.
. Absorbing brick and mortar locations in major metro areas across the United States provides Amazon
with resources within miles of a large portion of their consumership, but that doesn’t solve every issue.

Amazon Flex allows people to sign up to pick up Amazon orders that they can deliver en route to their
destination, similar to UberRush.

Walmart:

Delivery Right into the Fridge"

Spark Delivery is a crowd-sourced (Uber-like) delivery platform that allows Walmart to learn even more
about the full last-mile delivery process.

The pilot uses an in-house platform that provides drivers with the ability to sign up for windows of time
that work best for their schedule as well as Grocery Delivery order details, navigation assistance and
more. Components of Spark are powered by Bringg, a leading delivery logistics technology platform.

Walmart’s team of personal shoppers are an important component of the overall process as they
meticulously shop for customers’ orders. Spark Delivery engages the services of independent drivers
who partner with Delivery Drivers, Inc, a nationwide firm who specializes in last-mile contractor
management, to complete deliveries.

Across Mexico, a mixture of owned delivery vehicles and delivery partners allows Walmart’s many
formats to deliver to customers almost anywhere. But Mexico isn’t the only market with such a broad
reach. South Africa’s Massmart also uses a network of third-party and owned vehicles, including
crowdsourced provider Wumdrop, which operates in 16 Makro stores in Cape Town, Johannesburg,
Pretoria and Durban to deliver to its customers.

In Canada, Walmart and Penguin PickUp launched co-branded locations in urban areas, making grocery
shopping easier with pickup stations conveniently located for customers who are several miles from a
Supercentre.

Walmart China works with the logistics team at Dada-JD Daojia to offer the speedy delivery service,
which transports groceries directly from a warehouse-like depot system to customers’ doors. As of
January 2019, Walmart China operated more than 30 depots with additional locations on the way

ASDA in the United Kingdom is stepping up its delivery pace by launching same-day delivery to over 270
stores. But, the team isn’t stopping there. The British retailer is testing a service in partnership with Just
Eat that delivers 100 essential products in 30 minutes or less.

Walmart is also partnering directly with Uber to facilitate on-demand grocery deliveries. This Uber
partnership may be a strong one for Walmart; there is a Walmart within five miles of 70 percent of the
U.S .population, making it fairly feasible and cost-effective for Uber to make deliveries without having to
deal with long distances, which reduces what would otherwise be high on-demand delivery costs.

The new Spark Delivery service is a crowdsourced platform which provides another way for Walmart to
deliver groceries to their customers. It uses Walmart’s existing team of 25,000 personal shoppers to
fulfill orders, which are delivered by independent drivers recruited by Delivery Drivers, Inc, a nationwide
firm that specializes in last-mile contractor management. Bringg powers the technology behind the
service, which uses an in-house platform that provides drivers with the ability to sign up for windows of
time that work best for their schedule as well as grocery delivery order details, navigation assistance and
more.

Drivers are paid by the delivery. They also have access to helpful services and information through DDI,
including assistance in understanding order flow, group discounts and a Contractor Entrepreneurial
Program that helps drivers establish their own small businesses.

Softbank backed GROFERS

Grofers – earlier operated on marketplace model- where retailers take care of the last-mile delivery

Now shifted to 70% inventory led business where it sources products from different brands directly and
30% from marketplace.

2016-------------------------------

In Delhi NCR- 90% of Grofers’ volume is serviced through its own warehouse. Still has marketplace
model but transferred the burden of delivery on retailers

Built multilevel warehouses in markete including Delhi, Mumbai & Bengaluru. Created 4.5lakh sq. ft
warehousing capacity in country

In 2018, Grofers launched its membership/subscription-based service ‘Smart Bachat Club’, and has since
got half a million subscribers. The members of the club can shop for their daily groceries by paying as
low as wholesale prices.

Grofers has also partnered with local businesses like kirana stores, gyms, beauty parlours, etc., to carry
out its last-mile delivery. Customers can pick up their orders from these small establishments or get it
delivered home.

Shifted from 90-min delivery to next day delivery to incorporate large ticket size & to bring cost
efficiency to logistics

Out of Grofers’ team of 450, about 150 are into tech. Its technology helps these partners with stocking
up the right products and automates prediction of what will be in demand in a locality (and get the
partner to stock it). Albinder claims that 500 million such projections are made daily (on inventory
deployment).

Albinder says that Grofers has such partners within 500 metres of every registered customer address.
“This network has 6,500 stores, so we don’t need delivery personnel. We even have partners in Dharavi
(Mumbai slum area). They are paid on either monthly or per-delivery basis,” he says.

Out of Grofers’ team of 450, about 150 are into tech. Its technology helps these partners with stocking
up the right products and automates prediction of what will be in demand in a locality (and get the
partner to stock it). Albinder claims that 500 million such projections are made daily (on inventory
deployment).
Albinder says that Grofers has such partners within 500 metres of every registered customer address.
“This network has 6,500 stores, so we don’t need delivery personnel. We even have partners in Dharavi
(Mumbai slum area). They are paid on either monthly or per-delivery basis,” he says.

Online grocery platform Grofers is working on converting about 200 brick-and-mortar stores into its own
branded outlets over the next few months as it looks to expand its business and push its private label of
products.