1. Comment
August 23, 2018

Has the future of grocery food delivery arrived?

Autonomous grocery food delivery system has arrived, but will it be able to transform the way consumers do their weekly food shop and how businesses operate?

By GlobalData Consumer

Autonomous grocery food delivery system has arrived, but will it be able to transform the way consumers do their weekly food shop and how businesses operate?

Free Report
img

What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

Kroger, an American supermarket chain, has begun a trial of its autonomous grocery delivery service in Scottsdale, Arizona with the goal to save consumers time and create convenience. The service currently offers shoppers same or next day delivery with no minimum order requirement and will only cost a flat fee of US$5.95. After an order has been placed, the driverless vehicle will deliver the groceries directly to the consumer where they simply go to the parked vehicle, enter a unique numeric code and take out their groceries from the opened compartment. Since this service is still in trial, the format has not been finalised yet and may change after its main launch.

This is an innovative take on food delivery but the autonomous factor is unlikely to have any major affect on how consumers do their online grocery shopping. The majority of the benefits will be reaped by the supermarket chains instead.

The use of autonomous vehicles avoids the need for drivers which creates two main benefits: cost savings and expansion. It allows grocery retailers to save on hiring and paying drivers. It also provides the opportunity to increase the number of possible deliveries since the retailer is not limited by the number of drivers they have on a particular day but by the number of vehicles they own.

Although cost saving is one of the benefits, high investment cost is also a major drawback. The initial investment in a fleet of autonomous vehicles will be incredibly high, as will the insurance required for it. Alongside this, not every state in the US – and countries worldwide –are as open to autonomous vehicles, and the public’s opinion is not always positive, hindering retailers ability to implement this service elsewhere.

Despite these drawbacks, it is likely that in the future autonomous vehicles will be the main source for all deliveries, and not just grocery food. The drawbacks mentioned will become less problematic overtime; the continuous development of this technology will eventually convince the public to accept it as well as reducing the risks involved. In the next five to ten years’ time, it will not be surprising to see fleets of autonomous vehicles delivering consumer goods to everyone’s doorsteps.

Free Report
img

What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.