Google announced yesterday that they will begin delivering groceries to consumers. This has been tried before. Publix has experimented with this and may do it again. I’ve seen local grocery clerks deliver bags of groceries to the elderly, like my grandmother, in Queens.
Google has made a lasting impact on our lives with their search engine, ad words, Google Earth, the list goes on. Groceries are totally different. A lot of things have to fall in place.
Google Express will have to make sure Whole Foods, and Costco the grocer, partnering with Google has the product. Will the truck get to the store when its scheduled? Will the clerk be ready to stock the item. Will there be enough product, especially for a sale item. A lot of things can go awry during the process and I can’t wait to see how effectively it plays out over the next sis months. Mother Nature plays a role too and can easily push back truck deliveries. Never mind the small margins. Then the trucks have to be unloaded from all the stores participating like Target, Costco, etc., which can be a dance too especially if grocery clerks are new and inexperienced.
Grocers will benefit from lower gas prices, which lowers transportation costs. That being said it will be interesting if food prices rise, when, and I do mean when, gas prices go up again, They also have brand recognition and I’m sure have planned for all situations to arise. I will be adding more of my analysis regarding grocery deliver and see if this will be a disruptive service.