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Most of the fear of INSTACART is about a simple fact. Will it go to an Amazon direction or is it more Alibaba?
This post asks - what if it needs the alibaba route?
See Alibaba is a "pure marketplace" - it's not a private stock. All offered tools are not competing with its retailers. From Storefronts to the famous marketplace, up to the numerous supply chain companies. All these things that offer it as an advertising platform or as a service provider.
take into account a few interesting things:
The US retail market has been shocked over the rise of Amazon in the last 20 years.
As a result, their generals are still "to fight the last war. Sample adaptation is difficult. A very common instacart narrative is that you will be your own food dealer. That is, you will cut all your suppliers. Most of this feeling based on Amazon's heritage in the room. What if this story is wrong?
But that does not mean that consumers still do not prefer to buy from the marketplaces and that they have no scaling advantages.
When Amazon started again today, would it even store his own goods? Everything about 3p is better and more profitable.
And no, invested in automated fulfillment centers does not mean that it will start his own brands. It could easily mean - like alibaba - it needs them to deal with the quantity and efficiency needs of its consumer requirements. Why own the inventory if you do not have to have no border anyway. The margin is in advertising.
Amazon has fought with almost every brand, with the exception of the marked "basics". If there was a pure, non-competitive marketplace, which concerned 50% (marketplaces did this in any other category, in the US food volume in 10 years, how would it look like? This is a pretty valid foodwork by Instacart. Dan Bourgault had an interesting angle: "In my opinion, everyone in the grocery store should be a digital media company, and everyone should collect data as this is the only way to succeed as a media company. Not to be silent from the data In consumer behavior to increase a higher predictability before he happens, which is in many species of invaluable value. I hate to quote Bezos, but "We do not sell things, we make things easy to buy." That's the mentality of a soon 3,000 grocery chain chain chains that thought like a digital media company, the food forces are easy to buy. "
Mark Fairhurst Alley-Ooped Dans statement that reading on the possibilities: "What if instacart is really interested in being a digital media company as a marketplace and fulfillment provider? What if you are more interested in To collect HH ??Data and Consumer Eyes, creating advertising revenue on the back of brick and mortar dealers that risk the media mediation. A tough bargain to be sure for retailers. The main goal for the marketplace is to maintain access to so many consumers as possible; therefore, the branch is to other verticals of retail. The flip page of the business model is to limit exposure to labor costs as much as possible, thus speculation around MFCs. "
I'm not sure if I would go as far, but it's really interesting to consider. Let's not forget how important the data is in all of them - it's not just the food supply of load miles.
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