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Old 06-26-2014, 08:27 AM
 
651 posts, read 1,557,279 times
Reputation: 342

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this wont work during $3.69-$4 gal gas prices.



if webvan failed during $0.99 cent gal gas.

even if you paid drivers min wage $8hr.
van insurance + cost + overhead.

it just wont be profitable.
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Old 06-26-2014, 08:55 AM
 
989 posts, read 1,737,205 times
Reputation: 690
Quote:
Originally Posted by ehoez View Post
this wont work during $3.69-$4 gal gas prices.



if webvan failed during $0.99 cent gal gas.

even if you paid drivers min wage $8hr.
van insurance + cost + overhead.

it just wont be profitable.
You need to think outside the box. I think has a chance. Here is why.
1. Webvan actually owned the grocery warehouse, there problem was the low margins on grocery stores, spoilage, etc.
2. This company is shopping at grocery stores, they are paying the drivers a commission based on orders and tips by the customer.
3. Imagine if you are an Uberx driver, this a great source of revenue with minimal cost. Drive around people and deliver groceries.

As I type this in my cubicle... sigh.
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Old 06-26-2014, 09:04 AM
 
2,411 posts, read 2,766,333 times
Reputation: 2027
Quote:
Originally Posted by ehoez View Post
this wont work during $3.69-$4 gal gas prices.



if webvan failed during $0.99 cent gal gas.

even if you paid drivers min wage $8hr.
van insurance + cost + overhead.

it just wont be profitable.
I think that's the point of a limited delivery area--it's dense enough and wealthy enough to make multiple deliveries in one trip work. For smaller deliveries, you might not need a big van--a Prius V might work.
I imagine Costco and Kroger are paying for a significant amount of the overhead to capture market share from Publix and Sam's.
Also, during the dot-com era, a lot of companies (like Webvan) did a lot of silly things ---peeing through cash just to get their name out there--with no real plan on how to be profitable. Just because something was done poorly before (or just had unfortunate timing before), doesn't mean it can't work now.
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Old 06-26-2014, 09:11 AM
JPD
 
12,138 posts, read 18,228,397 times
Reputation: 8004
Quote:
Originally Posted by jeoff View Post
I think that's the point of a limited delivery area--it's dense enough and wealthy enough to make multiple deliveries in one trip work. For smaller deliveries, you might not need a big van--a Prius V might work.
I agree with this, but I'm glad I wan't driving a Prius last weekend when I went to Costco. The stuff they sell is huge. Maybe Costco will offer grocery store sized items for the delivery service, rather than the mega-packs they offer in-store.
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Old 06-26-2014, 09:24 AM
 
23 posts, read 37,969 times
Reputation: 22
Quote:
Originally Posted by billl View Post
We loved webvan. Used it all the time. Too bad they couldn't make it work.
I loved Webvan, too. I was very sad when it went out of business.

At the time, I had a 2 year old and a newborn and we lived in Midtown with minimal street parking. Nothing was worse then hauling two small kids to Kroger or Publix only to return with a car full of groceries and no where to park. It was so nice to place an order online while they were sleeping and have it delivered the next morning.

The demise of Webvan was the impetus for us putting in a driveway... which unfortunately was often blocked by idiots parking on the street, especially during Dogwood Festival and other big weekends.
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Old 06-26-2014, 12:04 PM
 
Location: Odessa, FL
2,218 posts, read 4,354,010 times
Reputation: 2942
Quote:
Originally Posted by GoingGrey View Post
It was so nice to place an order online while they were sleeping and have it delivered the next morning.
Yeah. Or to have an entire shipment of groceries delivered hours after returning from a long trip.

I really liked that you could pick you delivery window to within (as I recall) half an hour.
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Old 06-26-2014, 01:25 PM
 
2,685 posts, read 6,028,760 times
Reputation: 952
We can analyze from afar that it won't work but many markets have several such services as the article mentioned so someone seems to think they can make money off this. Lots of things in our economy you would think wouldn't work but people are willing to pay to make their busy life simpler.
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Old 06-26-2014, 02:44 PM
 
31,995 posts, read 36,572,943 times
Reputation: 13254
Fantastic! I really miss webvan.

The anti-car crowd will love it, too.
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Old 06-26-2014, 02:45 PM
JPD
 
12,138 posts, read 18,228,397 times
Reputation: 8004
Quote:
Originally Posted by arjay57 View Post

The anti-car crowd will love it, too.
How do you figure that? A fleet of cars or delivery trucks will be required to make all the deliveries.
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Old 06-26-2014, 02:47 PM
 
31,995 posts, read 36,572,943 times
Reputation: 13254
Quote:
Originally Posted by JPD View Post
How do you figure that? A fleet of cars or delivery trucks will be required to make all the deliveries.
Well, anti-car folks will be able to get stuff from Costco and Kroger without driving.

And a delivery service should be more efficient than all those shoppers driving individually.
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