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The Almighty Buck

Step 2, Groceries 291

prostoalex writes "Fortune magazine runs an article on New York - based FreshDirect, provider of high-quality groceries. Unlike Webvan, which failed with $1B of venture capital, FreshDirect seems to make pretty good money off online grocery sales - revenues of $225M are projected by 2004. The minimum order is set at $40, the company also charges $4 for delivery." If you want to check out their store, try zip code 10022.
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Step 2, Groceries

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  • by dameron ( 307970 ) on Sunday November 17, 2002 @04:21AM (#4689464)
    and begs the question: How can I get my product/service/ideology advertised on Slashdot for free?

    -dameron
  • by Blaede ( 266638 ) on Sunday November 17, 2002 @04:34AM (#4689508)
    Many people don't own cars there, because of hard to find parking. And when you don't own a car, buying groceries in mass quantities is difficult, not to mention time consuming. Try doing YOUR grocery shopping without a car for the next month, let's see how you fare. Unless the store is literally within 4 blocks, you will find that carting 2 typical bags back to your house is a very time consuming chore. The fee this company charges is minor, especially in New York! I would kill for such a service here in Memphis. I currently am without a car. A backpack can only carry so many items. Like I say, try doing it without your car.
  • Ingenious (Score:4, Insightful)

    by dsanfte ( 443781 ) on Sunday November 17, 2002 @04:36AM (#4689515) Journal
    Actually it's pretty smart. If it was just a popup add or banner, we could block it with an entry in our hosts file.

    Ad Placements^H^H^H^HStories are a little harder to block.

    Other news sites do this already, you just likely don't notice it. CNN does it all the time. I know CTV Newsnet in Canada does it on the air more than once per day.
  • by SlashChick ( 544252 ) <erica@noSpam.erica.biz> on Sunday November 17, 2002 @04:42AM (#4689537) Homepage Journal
    ...both Safeway [safeway.com] (might be IE-only) and Albertsons [albertsons.com] deliver groceries. Both charge a $9.95 delivery fee and deliver from local stores.

    I must admit, though, that I'd rather see a startup company doing this than the already-established grocery stores. I was a happy Webvan customer, and I still think the model is quite viable. (Plus, I love the FreshDirect site design.) Here's hoping FreshDirect or a similar company takes a stab at this here in the Bay Area!
  • by Evro ( 18923 ) <evandhoffman.gmail@com> on Sunday November 17, 2002 @04:53AM (#4689566) Homepage Journal
    How is this cutting edge? I guess you think that tacking on "on the internet!" to any business model is "cutting-edge"? I mean, how is buying groceries on the internet! cutting edge? Grocery stores have had home delivery for decades; this is really nothing new at all.
  • by Animats ( 122034 ) on Sunday November 17, 2002 @04:57AM (#4689578) Homepage
    What really makes this thing competitive is that it serves Manhattan, but it's in Queens.

    Manhattan is a special case in the US. Food is normally transported in semitrailers, but semitrailers are allowed in Manhattan only under severe restrictions. So stores in Manhattan need a distribution center somewhere nearby, where everything is transferred to smaller trucks.

    This outfit avoids that step, by putting their warehousing operation just outside Manhattan and filling customer's orders directly from it. That's a big win. But it doesn't have to compete with big supermarkets where semis pull up to the loading dock at night.

  • by h0tblack ( 575548 ) on Sunday November 17, 2002 @05:02AM (#4689587)
    Good point, except I very much doubt that the submitter has much to do with the company in question. If I'm not mistaken, he's Russian, I doubt he/she could even use the service, let alone be advertising it. (Although yes, of course, in these modern days with newfangled things like the Internet, geographical location has little to do with it).
    If things posted on /. had to go through a "does this have anything to do with a way in which someone could possibly make money" filter, I doubt there'd be much content.
  • by jedrek ( 79264 ) on Sunday November 17, 2002 @05:25AM (#4689644) Homepage
    After ordering and waiting a couple of days sorta contradicts It was cheap, fast and I didnt have to go outside.

    Don't get me wrong, when I order something like a TV or DVDs or whatever, I can wait the few days/weeks they take to deliver. On the other hand, when I'm ordering *food* I want it here within 2-3 hours, tops.
  • Nooooo! (Score:1, Insightful)

    by Anonymous Coward on Sunday November 17, 2002 @05:42AM (#4689680)
    Missing one CRITICAL geek grocery item:

    NO MOUNTAIN DEW! [freshdirect.com]

  • Re:Car independant (Score:3, Insightful)

    by Blaede ( 266638 ) on Sunday November 17, 2002 @06:58AM (#4689846)
    Taxi? That would entail a $10 fare, plus a tip. While my grocery stocking trip would only be a once a month activity, you can see where FreshDirect would be not only 1) cheaper and 2) use less of my time. If the delivery fee is a paltry $4 in high priced NYC, imagine how much lower it would be here in Memphis? I have no idea on what the local cab companies here think of carting a guy with 8 paper bags or groceries back to his place is. The oly time I've used cabs is for trips to the airport and bus terminal, and for being carted back home after wisdom tooth extraction.

    Friends? I would never impose on anybody for helping out with things like this, especially when I am able bodied. If I needed a large object moved, found it crucial for someone to assist me taking an arrow out of my arm, etc., then I'd call on friends. But for this, this is only robbing them of their time. What kind of a friend would I be then? And no, I never drive other people cars, especially for my benefit.

    Mass transit? "Luckily", there's a bus that travels in a direct route from Kroger to my apartment. Unfortunately it does this only twice a day, during working hours. Not only would I have to take much time, now losing income is factored in. Plus, a bus ride here costs 1/3 of what FreshDirect is charging in NYC. And even if I did take the bus, 2 paper bags (and a backpack's worth) would be my encumbrage limit.

    Bicycle? I'd been using my bike for this for 2 years, until just recently someone felt they needed it's rear wheel more than I did (yes, I'll lock that wheel as well next time). Truthfully, I enjoyed the biking, as I could get exercise AND quicky get the food. I've been investigating adding such a basket to my bike.

    Buying as I need? That would just rob me of time. It would be more efficient fiscally for me to work more to pay the minor delivery fee than to spend time going back and forth just for sustenance. Not to mention the added cost of buying the smallest portion for items. One example is sugar. I'll buy a 10 lb bag. Now that will take me 3 months to use (I love lemonade).

    It's not the effort that is my problem. I'm not slothful. But food gathering should not take 7 hours of my life each week, as one poster above thinks it should. When I had my car, this was an activity that I did monthly, and it took 1 hour, at the most, WHILE waiting for clothes to dry at the laundry. Even then, I'd still ride my bike for the perishables that would not keep for a month and had to be bought fresh.

    I've done the logistical math. For my particular situation, a service like FreshDirect would be great for me, not because I'm lazy, but it would cut this chore to a mere fraction of the time it would take me now, given my current vehicle situation and location to the store. And like I said, if it costs $4 in NYC, it'll probably be $3 here in Memphis.
  • by khuber ( 5664 ) on Sunday November 17, 2002 @08:26AM (#4690018)
    I bet food in a normal supermarket is handled and mishandled by more bacteria-ridden people than the warehouse of the delivery service.

    All you have to do is judge the quality of the food you receive from the online place. If it sucks, don't buy there. For many, it's convenient. Several people I know use a similar service here and are very happy with it.

    -Kevin

  • by Ilgaz ( 86384 ) on Sunday November 17, 2002 @08:42AM (#4690048) Homepage
    We, here in Istanbul/Turkey have an online grocery for 4 years!

    Its Koc holdings "migros" grocery (joint venture with swiss migros) and works well, they even deliver stuff 2-3 hours later, WITHOUT any fee.

    http://online.migros.com.tr/index_sanal.html (in turkish)

    Also they use those cool GSM credit card machines so you don't have to give your CC over the net.

    I don't understand the big deal. I mean, if it was a VRML or VR shop you bought stuff by actually walking around on browser (yes a UK company exist), it would be big news, but whats the deal with this one?

  • by zogger ( 617870 ) on Sunday November 17, 2002 @08:44AM (#4690052) Homepage Journal
    "Just in time" is ok for non essentials, but for necessities like food it is a tad more prudent to have more than a meal or two's worth on hand. Try having a few weeks minimum in case of an emergency or disaster, etc, along with some water. It might not have ever happened to you, not yet, but it's happened to unmpteen zillion people in the planet's history that unforseen things occur and you might not be able to "stop by" and grab that daily suply. At least have some basics that could last. This is sincere advice, it's my primary avocation, this subject. Survival/preparedness issues. It applies to poor and rich, nerds to luddites, it doesn't matter, never forget you are a carbon based life form with "needs" as opposed to "wants".

    We have here short term fresh foods, medium term storage "normal" grocery foods, and very long term stored food, in addition to our vegetable garden. and I've always had that-more or less-since my late teens,including times of no vehicle and either walking or taking ten speed every where. It's doable. Modern delivery and being able to use the internet for food is a good thing, and you can get excellent quality food delivered to your door, from major urban to out in the boonies, anyplace a fedex or ups or a UPS person can make it.

    The deal is you can do both, it doesn't have to be either/or. You can do daily light shopping for fresh, but for sure don't neglect basics and have at least some weeks or a months worth-a realistic month-on hand at all times.
  • VC and success (Score:2, Insightful)

    by Ninja Master Gara ( 602359 ) on Sunday November 17, 2002 @09:22AM (#4690120) Homepage
    It pisses me off in the worst way that WebVan got a billion dollars to last what, a couple years?

    And companies today that were around before the boom, and are still around today, have nightmares trying to get small reinvestments and loans cuz they're the dreaded "IT COMPANIES".

    Way to go on making it work FreshDirect.

  • Unless the store is literally within 4 blocks

    I have been wracking my brain, and I cannot think of a place in Manhattan where you are more than 4 blocks from a grocey store.

    More to the point, this service is really not in the best position. I'll use it, but I'm probably atypical. Almost every grocery store in Manhattan will deliver -- You can go, get your cart, wander around, squeeze the canteloupes, make impulse purchases, then when you check out, you just say "deliver this to 234 W 71st St. Apt 1A." Walk home without your 150 pounds of groceries, and still have them in about 60 to 90 minutes. Best of both worlds.

    I'm aware that the "people like physicality when purchasing" argument is a pretty tired one, but I think it applies to food, particularly.

  • by michael ( 4716 ) on Sunday November 17, 2002 @06:56PM (#4692846) Homepage
    I can't even use their service - and I live in New York City!

    I had to look up an "Upper East Side" zip code in the phone book in order to check out their store.

    And what percentage of Slashdot readers actually live in the Upper East Side of Manhattan? A hundredth of a percent? I would guess that Fresh Direct lines up most of their customers in the "traditional" NYC manner: littering their delivery area with flyers.

    For all the stories that we post, there are so many which better fit the "advertisement" criteria - ones involving technology products that are available nationally, for instance.

I tell them to turn to the study of mathematics, for it is only there that they might escape the lusts of the flesh. -- Thomas Mann, "The Magic Mountain"

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