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Here in Minneapolis we have Simon Delivers. http://www.simondelivers.com/

I see their trucks quite often, so no, home delivery of groceries isn't dead.

I always wondered how these places stay in business. Do you really think the vendor's actually put a lot of thought into finding the perfect tomatoes, freshest eggs and milk, and softest loaves of bread?

Or do they sell whatever the oldest crap they can get away with selling?

The quality of meat and produce have been quite high--much higher than if they just shoveled in whatever was on top of the bin at the local SuperMartWiggly. I suspect that they either reject a lot of stuff or throw it away, which seems to be the secret of the high-end grocery stores, at least in Minnesota. A neighbor works at a warehouse and he says that the cheap places and the expensive places get the same shipments--the expensive ones just throw away the bad stuff (and mark up the remainder to make up for it).

• Cost: on a per item basis, significantly higher. I estimate that we spend 5% more, on average, per item than if we were shopping brick and mortar. We'd be spending even more if we weren't watching for sale items - it still pays off to "stock up" on pantry items when they go on sale.
  
• True cost on a weekly basis, significantly lower. Purchasing from my desk at work or at home in the office, I only buy what we need. We don't buy junk food any more. We get really good produce, with little wasted, as we tend to buy less each week. (I don't know why this is... It's as though you feel pressured to buy more in the brick and mortar grocery store. Is it because of the effective visual marketing, or because of the desire to eliminate a return trip next week? I hope I never find out.) Traditional grocery shopping used to be 3x per month, at $185 per trip. (Thanks for the stats, Quicken.) Simon Delivers is 1x per week (every Thursday night) for $80. Meet the $80 minimum, and delivery is only $5.00. We usually have to buy a few canned goods to get it up to $80. Where did all that extra money go? We used to buy junk food. And we used to throw out a lot of produce. Now, our refrigerator looks bare, but there's always enough quality food in there for the week.
  
• Time no brainer here. We spend about 1/10th the time grocery shopping that we used to. After a couple of months, everything you're ever going to order, you've already ordered. It's on your "favorites" list. Just browse down your favorites list, noticing items on sale for stock-ups, and click to add to the shopping cart. Literally, ten minutes later, you're done.
  
• Delivery Simon Delivers brings the groceries out in big totes, with both refrigerated and freezer versions. They'll leave the delivery if we're not home. Cold/Frozen foods stay that way for about six hours in those totes. The following week, they pick up last week's totes. Couldn't be easier.
  

Forgot the URL - its http://www.simondelivers.com/

Many people in the Twin Citeis area have found satisfaction with SimonDelivers.

Their interface is great and the prices aren't bad. I see SimonDelivers trucks all over the place every day. They must be doing OK. In fact, I need to go finish up this week's grocery list. MMMMMM..steak.

Troy

I don't know what kind of revenue they pull in but Simon Delivers has been doing this same kind of thing in the Twin Cities metro area (Minnesota) for a few years now. They have fast delivery, their products are good quality, and they accept coupons...delivery groceries seems to work pretty well, IMHO.