Strategies Employed by Online Grocery Services to Deal with Competition

Online grocery services are experiencing a fast-paced growth in the United States as consumers become more comfortable with purchasing grocery products via an online platform. However, companies specializing in the selling of grocery products are facing competition and trying to cement a top position in the market by adjusting their business models.

Dealing with stiff competition

Online grocery companies such as the New York City-based Instacart are slashing hours for its cashier. Previously, the shoppers picked items while cashiers dealt with the checkout process. However, with the slashing of cashiers’ hours to minimize cost, buyers will handle the picking, packing, and checkout process.

Postmates reduced its minimum order size that qualifies for the subscription. Throughout history, Postmates Plus has delivered purchases from Postmates Plus Partners valued more than $30 free of charge. The cost of subscription is $9.99 each month. The current minimum for free delivery is $25. The aim of this reduction is to attract new clients.

AmazonFresh, an online grocery service is now available in Boston. The service will be available to VIP members for $299 on an annual basis. Nine markets in the US are already enjoying the AmazonFresh service. The service also officially launched in London a couple of weeks ago. Despite its remarkable expansion, the high yearly cost of AmazonFresh might have driven some of the prospective clients to close competitors such as Postmates and Instacart. This article was originally published on Business Insider

Services adjustment

Currently, companies offering online grocery services are adjusting their services to address the high demand in the United States. The findings of a report carried out by Brick Meets Click indicate that as many as 41 percent of US shoppers have bought groceries online once or twice.