How 'Dark Stores' Are Speeding Up Grocery Deliveries | WSJ 

So basically it's kind of Ghost Kitchen but for grocery.

selecting my own fresh produce is one of my favourite things

The prices are like 30% higher then in the grocery stores ... so you should buy from local grocery stores to sustain the LOCAL economy ...

Dark stores? Sounds ominous like drug dealers… when I was growing up my mom could get groceries delivered to her doorstep within two minutes. It was called “run over next door and see if Elsie has two eggs (or a cup of milk, or half cup of flour)”... but then a day or two later after mom visited the grocery store, I’d be taking the same item back to Elsie to repay it

The video would have helped with comparisons of items. For instance, how much does one apple cost in a conventional grocery store and how much does it cost in one of these stores? This could have been done with milk, cereal, etc. It would have helped give a sense of how durable this business idea is.

Meh, I still prefer going myself. I don't like paying 50% more for already expensive groceries.

If I'm able to shop for myself, I will. I find it enjoyable to pick what I want, when I need. Plus the money saved on delivery can purchase more of what I need or want.

Lol they'll just keep pumping vc money till they are the last ones standing, then IPO at an absurd valuation and then keep running the unprofitable business.

“Dark store” sounds like it’s on the darkweb 🤦‍♀️

I still like going into the grocery store myself

groceries are inherently a low-margin business except for items like alcohol will really depend on whether they can get enough selection and hit large average basket values (like at walmart / whole foods)

This definitely exsits where I'm living in Europe. The local food delivery app has an "express" option. They will literally deliver in 10 minutes. However, it's a lot more expensive and only good if you need something right now. I often go for a local grocery store instead because it's cheaper.

Never once during this pandemic did anybody deliver or shop for my groceries. The only change in my behavior was no more leisurely browsing--something which I recently resumed.

Why does anyone need a stat order of cereal and a can of tomatoes in 10 minutes?

Interesting, never heard of this. Learn something new everyday, i will have to look further into this.

Why do we need "superfast" delivery? Do I really need next day shipping for a pair of headphones or a toaster? What's the price to society and the environment? Oh wait...this is the Wall Street Journal.

A very similar concept to Honestbee (no longer in operation) which has footprints in few Asian cities. It fulfills orders via neighborhood grocery stores. (Delivery time within 2 hours) .

Talk about free promotion! These companies just won the jackpot with the WSJ informing their 3.1M Subs! CHA-CHING!

Depends on the premium I have to pay. If you ask me to pay 20-30% premium for an apple in 10m, I'd rather take my supermarket price delivery within 3-5 days. There isn't any rush to get that apple. It's all relative

I don't see this working in cities in US outside of NYC .. but at the same time New Yorkers love their bodegas. Can't imagine this being big in the UK right now with gas prices up by 90%

This happened before anyway? Supermarket delivery was always picked in large warehouses for delivery. It sucks that this is meant to happen in such a short time tho.

So why is this called a dark store when its literally small warehouse?

This is the classic type of business that will never generate meaningful profit but the last or 2 last survivor's business will have a huge evaluation. Just like Uber, AirBnb, Doordash,etc these businesses will never generate any money but their founders all got rich.

This is a bubble just waiting to burst.

Something quite aligned to alibaba's Hippo. But, profitability would be huge question!

Hope the best for these startups. Amazon and those other conglomerates need competition

I keep seeing more ideas originate from Asia these day. Funny thing is they keep invent a new word for investor. Good luck if it works.

Dark stores sounds cool. Urban retail warehouse (what it actually is) does not.

Nice video.

ten middle men are better than one?

This is similar to what SkipTheDishes is doing with Skip Express Lane!

Admire their hustle.

We already have Meituan, Eleme, Jingdong to home in China

I don't know why, but whenever I see videos like this, all I think is how they're all built up on the backs of employee exploitation. You mention a big player in this field, Amazon, and it's not like they're known to borderline torture their employees (amazon warehouses and fulfilment centers)

Everyone is betting on the next Amazon, Uber, or Tesla for grocery deliveries. They don't call them Unicorns for no reason. Good luck to the investors.

How they're also skipping out on state and local taxes, by using holdings companies carry leases, while business licenses are held by other shell companies and the actual profiting business is nothing more than a consultant/vendor to themselves. It's anti-competitive to cheat and claim legal loop-holes are fine, state and federal lawmakers need to act now!

i'm old enough to remember Kozmo!

I would be interested in knowing what is a comparable service like this in the states. I know Go Puff is stateside, but they advertise snacks on demand not groceries. I like the idea of having large, heavy items delivered to my door like cat litter, laundry detergent, or charcoal briquettes. Not my produce! I wouldn't trust the quality.

New Zealand has been doing this for years

I enjoy grocery shopping not everything has to be app orientated Sheesh, some people like going out and having interactions

These companies obviously make a significant mark-up on each item they sell. Can't see how that can go wrong unless they spend crazy on unnecessary things

I think another reason is chain supermarkets jack up some of their prices way too much. So I guess some customers notice that difference and chose to buy in smaller shops. Same or lesser price with ultrafast delivery, why not?

We are slowly going to mimic the people in the movie walle.

Transactional analysis is painstakingly ignored...... That makes me wonder when the WSJ will hire journalists again? BTW what is the past history of this niche? (A journalist would find out) I recall the first brand I ever saw in this category about 30 years ago. No, it did not make it. In the Grocery business the center store, GROCERY department with cans and boxes makes about 1%. Store branding is the key to that department making better money than 1%. The outer departments around the perimeter, Produce especially, make the money and keep the store open. (Most floor designs walk you straight into Produce, the money maker.) How do these companies handle produce, dairy, meat, frozen, and alcohol? What GM products do they sell? What is their departmental ratio compared to 'regular' stores?

I enjoy the exercise of walking or running to a local store, save money, and pick fruit better. Purposeful exercise feels better and some data shows builds better body faster because brain-body knows it is developing muscles for a purpose.

Dark stores are the 2020's equivalent of Webvan.

Yet few will deliver to my non-metropolitan area.

So stupid: if you can't plan for a meal in 6 hours how are you able to plan your life in 6 months? Also, it takes me 10 minutes in the produce section alone just to pick the best looking veggies.

Wait until Amazon acquired this

The idea which appeals to a limited market, that you can't patent, and has lots of competition. What's not to like?

What about use by dates? You want at least a 6 month gap for chocolate to still taste good. Do you have that option here?

How much do they pay the employees?

This will disrupt retail

I own a delivery company in Ethiopia ...can you give me some advices on how to increase our sales and attract more customers??

Printing out a receipt for a digital order? Yeah, don’t see a problem there. LOL! I see some growing pains already.

1:20 while many …. Hm Amazon.

Go puff sucks! Every time I tried to use them it says no drivers available

We’re going back to the way it used to be done.

I don't trust anyone that pauses on the word "of"

This will not be profitable. "Dark stores" that rely on robot pickers and can fulfill many online orders spread over a huge metro area will displace these. Ten minute grocery delivery isn't even needed. Getting a daily grocery delivery with the order put in a day before is *much* more cheaper and feasible than this model. Fresh is good, but even spinach will keep for a week in the refrigerator. Depending on your family daily grocery delivery isn't efficient even.

Man lack patience don't we?

I don't understand why big chains don't outsource there delivery to these dark stores.

Early mover (not necessarily geographically) will always have an edge over the competition. Players with largest data gathered from multiple mega cities will eventually win the market; venture capitalists know this and try to pick and feed the winner.

The voice is so soft.

Update 2024; Getir just bailed on Chicago.. the 3rd largest city in the US.. this model is failing.

Amazon will buy them up. They’ve been doing Prime Now for years, they buy these up, they’ll be even faster and already have the drivers and platform

Other nearby shops will suffer

I would’ve called them ghost stores

But they are more expensive than buying it yourself!

Only companies that are profitable should be allowed to list on stock exchanges. This way small investors won't get burnt.

So basically this is like amazon prime now?

Completely ignored Getir, which is the biggest player in the field in Europe and one of the first companies to operate in the sector...

The goal is not to make a profit. The goal is to sell it to a large company (to get an exit). We're no longer in a profit driven economy. It's a asset valuation economy.

Or you could just plan ahead and buy what you need once or twice a week... Nah... Would rather spend 30% more.

Vcs pouring all this money into these startups bc they know Doordash is eventually going to buy them out.

The prices are ridiculous I just used their promo to get £40 worth of shopping for free then deleted the app

Didn't they try this with dominos pizza. 20 minutes or it's free?

Girl drops what looks to be a cookies box at around 1:53. Careful with those items, guys... LoL, just kidding...

Amazon, Square,…. We don’t think these companies business’ models will be profitable 🙄

I think it doesn’t make sense to many, because they are seeing it as a grocery store competitors. They’re not. They’re in a totally different industry. They’re not selling you groceries. They’re selling you time. Your time. AI powered fridges are already out there and as the tech gets better, this business model will soar. Just picture this: • the ai will tell the store near you that you used the last two eggs this morning, and that your favorite drink is on sale. when you’re back home from work, a fresh carton of eggs and a cold drink is already on your fridge, courtesy of those ghost stores. • you order takeout for the friends and family every Sunday. Instead of spending time on the app, the ai fridge asks you if you want it to order for you, and every Sunday, it’s done. The ai knows everyone’s favorite dish or snack, so no more need for Uber eats or door dash. Now I don’t have to spend the extra 10-15 minutes of going through traffic or long lines at a store. Or 10 min on an app. I can spend that time with my dog or my family. And those little moments add up. Just like the electric car vs the gas motor car, A new industry is trying to be born. And and old industry is struggling to stay alive.

i don't think the speedy grocery is a great idea as there's usually not a major need for groceries to be delivered speedily unlike say takeaway

Instacart delivery hubs?

I pick up my own groceries. 🙂

This is a great modern version of the milkman. How can you say it will not be profitable? People, especially the elderly, will use this service until the end of their days. There is a fixed demand in the market for these services. If you add convenience and an app, you have a winning combination!

what you want are sari sari stores

That's a great idea, I hope it is successful. I live in a more rural area, so I don't know if I will see it anytime soon, but I'm rooting for it!

I like the idea but i wouldn’t order my groceries in a app…most likely they would give u the oldest stuff so they won’t lose $ …and expiration dates on items ..I’m lazy but not that lazy

And no shoplifting 👍

D2c is saving them time

Does consumers really GET SAVINGS in competitive supermarkets.BARGAIN prices ?

So it's basically a warehouse, but in the city.

sure this kind of business is needed just cant too many players so eventually it will end up just few player which the strongest survive and will dominate the market.

This would be great in the bronx an poor area of Brooklyn

The amount of time this saves is ridiculous. I've been ordering 85% of my groceries online since 2017 way before the pandemic. Instead of spending 2 hours (on large family grocery hull, driving sorting hulling etc) i spend maybe 30 min on the app while lounging and another 10 to organize it from my door to fridge/pantry. Its a time efficiency matter. 40min vs 2 hours. Its usually free do to my order size but I would still do it as longer as its no more then 2-3% of the order sum. I wonder how much they make though.. doesn't sound very profitable. I don't think its a pandemic thing. Its here to stay. Just a question of cost vs profit. That said, I will order from the place with the biggest warehouse with the best selection is stock. Not the fastest to deliver. Don't need it in 10 minutes. Need it to have everything I need.

Indonesian was like, "yaelah go-mart doang"

they're a little like Dunzo

So you spend time stocking the store... and pay for the rent on the store... I don't get it

I guess it's for handicapped people. Other people need exercise, and shopping is one way people can avoid being too sedentary. I certainly wouldn't want to order groceries online. I cook fresh. I don't want strangers choosing the meat and vegetables I feed my family. Who dreamed this up? Ridiculous!

Zapp..zepto..hahaha

Delivery startups are not a sustainable business