Consolidation is indeed coming for the retail delivery sector.

I've always thought that the 15-minute delivery startups misunderstood their customers' needs and motivations.

My read on the growing demand for rapid home delivery is that it was in response to the rigidity of major supermarket delivery offerings.

Here in Australia, grocery delivery offerings typically have 4-hour delivery windows (slots). That is, you can expect your delivery between the hours of, say, 9 am and 1 pm or 12 pm and 4 pm.

Some companies allow you to pay (slightly) more for a 2-hour delivery window, but they are usually the ones that fill up first, so they aren't available to most customers.

2- and 4-hour delivery slots are quite inconvenient - not only are they mainly available on a next-day basis, but you need to be available to take delivery during those hours (possibly longer, if drivers are delayed).

These offerings don't match well with consumers' busy lives.

The demand for 15-minute delivery, IMHO, is driven by consumers' desire for greater control and delivery flexibility: what consumers seek is delivery at a point in time that is convenient to them.

Some consumers may truly need immediate delivery, but I suspect what most consumers are solving for is ensuring their grocery delivery occurs within a much narrower delivery window of their choosing.

#retail #retailexperience #retailtech #innovation #businessmodels
#startups #customerexperience #productmarketfit

https://lnkd.in/gks6dRBj