Instacart Taking On Amazon For Same-Day Online Groceries

Amazon is expected to begin one of its' most anticipated business ventures--online grocery deliveries. CNN Money recently reported Instacart founder Apoorva Mehta is taking online giant Amazon, as they both go full steam ahead towards revolutionizing the online grocery business.

How can this one man and his new company take on the world's largest online retailer? Mehta is an ex-Amazon engineer, therefore, he knows something about the online market and how to make it work. Being a former employee of Amazon more than likely has armed him to be able to make this big move. He is familiar with the cons of AmazonFresh and has the experience backing his company Instacart. If anyone has an edge and the knowledge to do it, it just might be Mehta.

Instacart's report more than likely comes in response to Amazon's announcing its' plan to expand AmazonFresh, which will incorporate the selling online food with high-margin item deliveries. Amazon says AmazonFresh has been tested for at least five years in hometown Seattle and is now ready to launch in other cities. The first two cities will be Los Angeles and San Francisco later this year. In Seattle, Amazon has utilized its' own fleet of trucks to perform deliveries of fresh food products.

Instead of building new warehouses in nearby areas like Amazon, Instacart is using an existing infrastructure, one that includes well-known supermarkets and 200 contracted personal shoppers across the San Francisco Bay, in which Instacart is available for its' customers.

Amazon appears to be taking an approach to the online grocery market that is, in Apoorva Mehta's opinion, is unwise. The online leader strategy is to gain their online food profits by selling other products, at the same time, that consumers already order online. Mehta's responded to this strategy in the article stating, "We were delivering Xboxes with your groceries. That may seem like an interesting idea, but how many times do you need to buy an Xbox?"

For the most effective method of delivery, online both Amazon and Instacart will have to have the online groceries arrive at a shopper's doorstep fast. Instacart may very well utilize contracted shoppers, however, Amazon stated they may utilize same-day couriers to handle their food deliveries. Competitors such as Wal-Mart and even Target, are already testing same-day delivery within several city markets in pursuit of online grocery deliveries.

Mehta's Instacart appears to have a good plan, however, the delivery aspect will be vital for its' online grocery execution. Same-day courier services like A-1 Express has a national footprint for same-day delivery and will be just the right fit to meet online demand. This San Diego Courier can partner with Instacart and develop an optimal courier logistics solution. A-1 Express has a high level of courier expertise and can provide quick implementation of food deliveries and keep up with company expansion, as the online food industry grows.

References: 6.18.13, CNNMoney, JP Mangalindan, This ex-Amazon engineer wants to outsmart Jeff Bezos