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Step 2, Groceries

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.

28 of 271 comments (clear)

  1. This sounds much like an advertisement... by dameron · · Score: 3, Insightful

    and begs the question: How can I get my product/service/ideology advertised on Slashdot for free?

    -dameron

    1. Re:This sounds much like an advertisement... by mfn · · Score: 3, Funny

      well, the first step seems to be get your product/service/ideology featured in fortune

    2. Re:This sounds much like an advertisement... by h0tblack · · Score: 3, Insightful

      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.

    3. Re:This sounds much like an advertisement... by cscx · · Score: 3, Informative

      My supermarket has been doing this for years now. Yes, online! This is hardly new, and I see it as a complete waste of my time even reading on the article.

      Also, I hear this dot.com thing might really take off. I think I'll start selling books online, yeah that's it!!

    4. Re:This sounds much like an advertisement... by prostoalex · · Score: 5, Informative
      Huh?

      I am the one who submitted this story, and you're correct about my Russian origin, although currently I live in WA state. Now, Slashdot lists me, as submitter of 58 stories total. They're related to different events, as well as different companies, including Intel, Microsoft, Sony, etc. If all my postings went through some crooked schemes that included fat checks those companies sent me to submit stories to Slashdot, I'd have my own island.

      I learned about FreshDirect from Fortune magazine today and I cannot use, let alone have incentive to advertise, their service.

    5. Re:This sounds much like an advertisement... by michael · · Score: 3, Insightful

      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.

  2. I truely am frightened by Crasoum · · Score: 3, Interesting
    That we are becoming more and more lazy. We can now order our groceries, work, and pay our bills all in front of our computer....

    Next thing you know we'll be able to order our dates online

  3. Boy! that'll screw with their stats! by PopeAlien · · Score: 5, Funny

    All of a sudden they have tons of potential new customers in area code 10022.. At least thats what the web log says.. Hope they aren't filling warehouses based on that info, or they could suffer the webvan fate.

  4. Um, you've never lived in New York, have you? by Blaede · · Score: 5, Insightful

    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.

    1. Re:Um, you've never lived in New York, have you? by nomadic · · Score: 3, Funny

      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.

      Believe me, in New York, even when you DO have a car, you never use it because you don't want to lose your parking place.

      No, I'm not joking.

  5. fyi by mrpuffypants · · Score: 5, Informative

    newsweek had a similar story in last week's issue about more traditional brick 'n mortar grocery stores going online

    the thing with them, though, is that they already have a ton of locations and are in no rush to scale up their web orders: they already are in the black on the retail front and want to slowly and cautiously roll out the web strategy

    they also have an edge over the online start-ups through name recognition: it's a lot easier getting somebody who already shops at your store to try something new, rather than risk it on some company they've never heard of.

    i couldn't find the link at the Newsweek site, but the issue may still be on shelves at stores around the country until monday or tuesday

  6. I've tried similar by acehole · · Score: 5, Interesting

    I lived in Sydney, Australia, a couple of years ago. I tried a service called 'ShopFast'. It was the first time i'd used such a service, the main reason i was giving it a try was because i was too lazy to go and get groceries myself.

    After ordering and waiting a couple of days, It was delivered and what impressed me was that I could pay by EFTPOS by use of a mobile EFTPOS terminal.

    It was cheap, fast and I didnt have to go outside. Perfect for the geek that I am.

    --
    Be you Admins? nay, we are but lusers!
    1. Re:I've tried similar by jedrek · · Score: 3, Insightful

      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.

  7. Ingenious by dsanfte · · Score: 4, Insightful

    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.

    --
    occultae nullus est respectus musicae - originally a Greek proverb
  8. For those of you on the West Coast... by SlashChick · · Score: 4, Insightful

    ...both Safeway (might be IE-only) and Albertsons 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!

    1. Re:For those of you on the West Coast... by BrookHarty · · Score: 4, Informative

      Theres also Schwans they are all over, a few bucks more. They also have allot of butchers who will deliver meat if you buy in bulk, and its cheaper than the stores.

      Myself, I prefer costco(warehouse store). You buy in bulk, but the cost is about 30% cheaper than the stores. Buy an executive account, and you get 2% of your money back at the end of the year.

      An example, Milk is 3.60 at the normal store (3.99 online order), its 1.99 a gallon at the quickie mart, at costco its 2 for 2.70. I have a family of 6, and we drink almost a gallon of milk every 1-2 days, need to shop and save money.
      -
      Save a little money each month and at the end of the year you'll be surprised at how little you have. - Ernest Haskins

  9. Re:Step 2? by scott1853 · · Score: 3, Funny

    Probably something novel like "Collect Money From Customers".

    Yahoo just realized that if they actually charge for their services, they make money.

  10. I work at Freshdirect.com by aliens · · Score: 4, Interesting

    Ok, so I'm just a "Brand Ambassador" but I have been around the office and such. Their $50 free food promotion really catches people off guard. We really are just giving you $50 to try us free with no delivery charges.

    While there are brick and mortor grocery stores that delivery, I gotta say the food I've been picking up from the warehouse beats anything else. I guess there is some truth in the fact that what they get does cut out the middleman making things fresher. The pastries are great. MMMmmmmm pastries, especially the fruit tart.

    Plus I like getting the already cooked meals by gourmet chefs at rather dirt cheap prices.

    Anyway, just thought some would like to know how the food is coming from there.

    Also we're rolling out very slowly, we're not trying to cover the entire city at once. This was Kosmo's mistake as well as Peapods. It looks like we'll be doing well in the future, just wish it was going to be publicly traded. Oh well, I'll settle for the food I've been getting.

    --
    -- taking over the world, we are.
  11. Car independant by decipher_saint · · Score: 4, Informative

    Ok, I'm legally blind, so I will never be able to drive, ever and I hate hearing people whine about how life is impossible without a car. Ok now that that's out of the way, from the sounds of things all you've tried is nothin' and you're all out of ideas. Have you considered:

    -A taxi cab?
    -Calling your friend for help?
    -Mass transit?
    -A bicycle with a rear storage bin?
    -Buying your groceries as you need them?

    For me a trip to the grocery store is almost a daily occurrance. If I can't walk or bike to where I want to go I get a bus, or if I'm in real need a taxi. Of course this means you have to keep a running inventory of your groceries so you know what you need before it runs out.

    My solution to this problem was to write a little app that allows me to record what I have and when it entered the system. From there I generate a report that I can print out for myself that includes information on useage frequency, average quantity purchased, average price, item importance and critical low stock notification. Yeah, I spend more time sorting my stuff when I get back from shopping, but I don't often run out of anything and the system was capable of supporting at least four people.

    New features I might add are an internet-based interface and WAP device capabilities so If anyone else goes to the store I can get a new report on my phone or before I leave work thru the net! (Also, since I buy a lot of the same products over and over I could monkey around with a barcode reader maybe).

    So to sum all this junk up:
    Just because you don't have a car doesen't mean you aren't allowed to use your brain to solve a problem :-D

    --
    crazy dynamite monkey
    1. Re:Car independant by Blaede · · Score: 3, Insightful

      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.

  12. Common in the UK by veg · · Score: 5, Interesting

    In the UK most of the major supermarkets have internet shopping. For 5 quid you get it delivered to your door in a refrigerated van.

    Despite how cool this whole idea sounds, we still trudge down to the actual store, pick the stuff by hand and get a cab back (which costs about 4 quid).

    Why ? Well we tried it several times from different supermarkets and each time something was wrong - things missing, food with a same-day sell-by date and the van turning up hours late...a right bugger if you were staying in to wait for it. The missing items were either just missing or marked "out of stock". We refuse to believe that the supermarket has run out of bread and bananas.

    So we'd have to go to the shops anyway to pick up the missing stuff anyway.

    Also, they will select replacement items if something is out of stock if you wish. However the selection is usually made by the store surrealist and not too helpful. Sorry, we're out of cheese, so we have selected some curry powder and a mop as a replacement.

  13. Um, you've never lived outside the US, have you? by CrystalFalcon · · Score: 4, Interesting

    The United States is _designed_ so you need a car to go shopping, which few exceptions (Manhattan being one of them). Where I have lived, I have always been able to get my groceries on foot, and we're not talking 7-11s here, we're talking real grocery stores.

    I have not only done my shopping without a car for a full month, but for, say, ten years. Sure, it's a ten-minute walk to the store. So what? It takes me longer to get to and from the garage anyway.

    The real killer is grocery stores in the subway stations, where you can pick your stuff up on your way from work without a minute of detour. I haven't used them, though, as I prefer to walk to a store, even if it's a mile or so away.

  14. tesco.com by Tet · · Score: 5, Informative

    I'm surprised no one's mentioned tesco.com yet. It's the world's largest online grocery delivery service, with revenues of over $560m last year, and it's running an operating profit. They've just started expanding out of the UK and have launched in the US in a partnership with Safeway. The unique thing about them is that rather than have a huge distribution centre somewhere, they make use of their existing bricks and mortar infrastructure. When you place an order, it gets sent through to your nearest store where a member of staff goes and picks it off the shelf for you, and it's delivered the next day (within a 2 hour timeslot you request, too). I've been using them for a while now, and have few complaints (other than a few IE-isms on the web site).

    --
    "The invisible and the non-existent look very much alike." -- Delos B. McKown
  15. Re:Grocery store business is dying, except for WMT by DennyK · · Score: 5, Interesting

    I do all my grocery shopping at Wal-Mart these days. It's a little farther to drive than the other stores, but it's a heck of a lot cheaper. The same stuff (almost literally, same brands and all) that costs $100 at Publix costs about $70-75 at Wal. Winn-Dixie is closer to Wal's prices, with the "value card" (yeah, yeah, privacy, blah, blah...but they don't do address verification, you just fill out the sheet and get your card right there, so as far as they're concerned, I'm Joe Smith from 123 Main St. in Boise, Idaho... ;) ) but it takes twice as long to shop there since half their inventory is a week past the expiration date (I swear to God one of their salamis tried to bite me once. Luckily it hadn't managed to grow any teeth. Yet...) Wal's also open 24 hours, which is nice for a night owl like me. Only downside is the aisles are crammed with pallets and carts of inventory at that time of night, so it can be rather hard to navigate...I had to walk half the length of the store one time when I found myself on the wrong side of the aisle and every space between the middle islands was blocked by pallets...

    The other downside to Wal-Mart is their selection is somewhat limited, but they usually carry everything I'm looking for, so it's not a big deal for me. Oh, and they can't sell beer after midnight. Damn blue laws...

    DennyK

  16. UK situation by mccalli · · Score: 3, Interesting
    Genuine question here, as I don't know the answer. In the UK, it's the norm for supermarkets to offer online shopping. Places like Tescos, Sainsbury's, Waitrose etc. do a reasonable business from it, with Tesco's being the most successful. I use the Tesco service regularly in fact.

    Is that not the case in the US? Don't the main supermarkets do this as standard?

    Cheers,
    Ian

  17. MN has SimonDelivers by Yort · · Score: 4, Informative
    I haven't used it myself, but I've heard of many people here in MN (Minneapolis/St. Paul) who love SimonDelivers, which has no delivery fee for orders above $80, otherwise $2.95. I don't know their financials, but they seem to be doing ok, and I certainly see their trucks all over the place!

    Troy

  18. Whats the big deal? by Ilgaz · · Score: 4, Insightful

    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?

  19. JIT for necessities by zogger · · Score: 3, Insightful

    "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.