Should Amazon Be Afraid of Instacart, the $4.2B Startup? - A Case Study for Entrepreneurs
Вставка
- Опубліковано 29 вер 2024
- Should Amazon be Afraid of Instacart, the $4.2B Startup?
Case Studies with the Biz Doc on Valuetainment- The #1 Channel for Entrepreneurs
Instacart is an American company that operates as a same-day grocery delivery service. Customers select groceries through a web application from various retailers and delivered by a personal shopper.
About Valuetainment: This channel is about providing a hybrid of information and education for entrepreneurs. Every video is created with a purpose of providing value and entertainment, hence Valuetainment.
Visit the official Valuetainment Store for gear: www.valuetainm...
InstaCart's 10% Service Fee is no longer optional. After being a customer for over a year, I renewed my membership only to find out that the service fee is now mandatory, although I had not been previously notified of this at the time of my renewal. When I asked InstaCart about this, they avoided the fact that there was no notification for this new charge, and suggested that I simply just not tip the shoppers in order to make up for the service charge. InstaCart shoppers are already typically not people you'd want to let in your front door; they replace cheaper items with the more expensive, or pricier, larger sizes, and they make many mistakes on your order. I don't know if Amazon may not be as quick to deliver, but I'm betting they are a darn site better by way of their service, period. Also: InstaCart does not tell you that if you've renewed your membership, but haven't placed an order within 30 days, you still have time to cancel the service. I'm glad I pestered them until I found all this out, but if you don't ask, InstaCart does not offer any information. InstaCart is a questionable company at best. Amazon wins.
2019, teachers come to you via Amazon lmao
I'm working on educating people about autism, and hope to teach the methods from this channel to educate autistic people about entrepreneurship.
I praise your efforts. The “Biz-Doc Babe” - my wife - teaches kids with learning differences - she is on a mission!!! Thanks - Tom
You should have mentioned that Amazon UK have partnered with Morrisons for grocery shopping. Some are saying Morrisons have signed its death warrant, some say it's the only way for them to survive against a future grocery focused Amazon. But, some are saying that Morrisons might be a nice buy for them.
Love your videos. Easily one of the most valuable channels I came across recently. PLEASE DO UNDER ARMOUR!!!
Under armor is on my list along with major league baseball advanced media and Shopify thanks -Tom
Amazon Flex is the service that works with independent contractors on delivery. It's just another gig like uber or doordash.
Thanks for that - I bet it was a flex service that delivered my battery. Thanks, Tom
GREAT JOB !!!!! ALWAYS LOOK FORWARD FOR EPISODES! !!
Hello again Manuel! ALWAYS great to hear from you. - Thanks, Tom
Watching this in 2023, and damn did you call it.
Sounds like amazon fresh aww wait. Dammm
Amazon bought Whole Foods??
Yep - late last year. Thanks, Tom
The problem with Instacart is that they are screwing over their shoppers. Each week our rates have been going down a solid 50 cents per delivery and we only get paid 40 cents per item (not per unit). So someone can order 10 cases of water and we will only get paid for one. They keep over hiring shoppers and jobs are thinning out. There are some cities out there that are only paying a measly $1.50 per a delivery order! They definitely need to settle their work force because no one will work for pennies! I as well as many other shoppers are getting extremely fed up with their antics.
Oh, not to mention, they recently found a ... "bug" that has been making some shopper's tips disappear mysteriously. This company needs to get it's poo together.
I’m very sorry to hear that. I wish I could’ve had access to some of that hidden information because I would’ve added it to the case study. I truly hope it sorts out for you and I thank you for leaving a comment so that everyone can understand more about the company. Thanks - Tom
If you ever do a follow up video to this or anything, I'll be here. :) There's also a subreddit all for InstaCart shoppers that has a lot of info. Thank you for making this video, I didn't know that they've been around as long as they have. Very informative!
There is a Facebook Group where all of these issues regarding how poorly Instacart treats its Workforce are regularly discussed. The struggle is real. If you get to a point that you'd like more such Workforce info we'd be happy to have you on the page: "Instacart Shoppers (National)".
This is so true. I'm fed up with the decreasing commissions and the piss poor logistics that has shoppers driving 30+ minutes to deliver orders for less than $5 for full service shops (or $2.30 for deliver only). This commission does not even meet the cost of a gallon of gas. I refuse to pick up orders for less than $5. Right now a shopper can barely break even with expenses or it costs them money due to tips going down or missing with the recent changes to the app.
Aimee Musselman You can always go back to doing your own shopping🤗
It's like asking should Amazon be afraid of Alibaba,shopify?
In what market? Thanks, Tom
Valuetainment in e-commerce My Lovely Valuetainment
Ali Baba for sure! Ali Baba handles even more of the purchase than Amazon and they have a CEO (Jack Ma) with class and integrity to my knowledge. He also has a work force that adores him, and is humble. THAT is a force you don't mess with.
I don't think Amazon should be afraid of Alibaba or Aliexpress because people who live out of China are only buying from these websites to sell it on Amazon for a profit or either they make their own website. Also Amazon and Alibaba are two different platforms, can think of it as retailer and wholesaler. I might be wrong btw :)
Tom, you always leave us better than you finds us. Thank you for this case study and for the structured, calm and gentle way of presenting all of the case studies. You're like the teacher that we never had in shcool, and yes I dare to say "we" because I'm sure there are a lot of guys and gals here that feel the same way but maybe don't get the chance to write it in a comment :)
Have a wonderful week-end!
Hi Florin! Thank you for the kind words - Tom
Florin - I sooooo appreciate your comment. My goal is definitely simple: leave you better than I found you. Thanks - Tom
Thanks, this is a very nice autograph that gives me energy since I got some work for the week-end.
Oh, oh... Almost forgot. I really love your branded shirts!
Florin Necula - I couldnt have said it better. I wholeheartedly agree. I subscribed to Valuetainment because of these videos. I kind of wish Tom had his own channel so I didnt get all the other valuetainment vids clogging my feed.
Amazon fears no man but GOD lol jks 😅
True but the whole grocery industry is now “on one side” in the fight. Thanks - Tom
They keep reneging on deals do you really think people are going to continue working with them or would they rather work with people/companies that operate with integrity?
Keep in mind what does Amazon make? They provide logistics and a place to buy it.
UPS would be perfect competition. Already have massive trucks, longer history, better experience with partners, built relationships on a personal level, brand recognition, factories. Give it a pretty face that's easy for people to purchase from and they can really take a bite out of Amazon. Oh and they have the funds.
UPS & Fedex are Amazon's partnered shipping system. lol
And Amazon has already set the precedent that partnerships don't mean much. So what's that mean other than if UPS decides to compete against Amazon they'd be chopping them down at the knees.
"Lol" indeed.
Another great episode, thank you.
I'm sorry, standing there wearing a shirt that has so many logos I react that you are saying what you are being paid to say and I can't take it seriously due to the possible hidden agendas. Not saying it's there, but it's really distracting me. Considering unsubscribing....
Smart to take everything with a grain of salt, but I do think he gives the viewer some insight if a person is interested in a particular company or area of business.
It's like going to college without the unnecessary filler and payment .
OR STUDENT LOAN DEBT!!! - Thanks, Tom
I'm just a 9 to 5 guy, i don't even know anything about finance, investments or business, but i love this guy's video series.
I appreciate that very much!!! Thanks, Tom
Amazon wouldn't charge the customer for the delivery, they would squeeze the providers to bear the cost. Not only that but once it dominates the market, they will push for lower grocery values. Deep pockets almost always win.
I do not disagree with you. We will see how this one comes out. Thanks - Tom
The valuations are insanely high considering a lot of super-markets have their own home delivery system(at least in portugal, a european semi-backwater country, meaning than most western europe countries have even higher percentage of super-markets with that service)
Just think some years ago everybody was worried about Walmart LMAO!
Amazon fears nothing, you do not mess with Amazon
True that - but they have a shot. Thanks - Tom
So long as Amazon continues to prove they can't be trusted in a partnership their downfall is inevitable.
Every giant has it's kryptonite. You'll never know
Stop being sicophantic
Tom, wow, you're a fellow believer in Christ! Blessed Resurrection Sunday!
Sir, when will you make a case study on Berkshire Hathaway.
Which part? A lot of angles in there. Thanks - Tom
Amazon is taking out everything bloody hell
So it seems - but I think Instacart and the grocery industry are getting wise. Thanks - Tom
This is like a world movie.
Raphael 1984...
Rumour on the street, Amazin been trying to get into pimpin business
Bring back case studies!
in the netherlands we already got grocery delivery, the supermarkets do it themselfs
riddler ? Funny thing is here in the US they do have order online and pick up whole order at this time. Not all but some players. Probably to much logistics to deliever themselves for more bigger cities
Amazon delivery doesn’t work with lyft. They have their own delivery company called amazon flex. It has 2-3 shifts per day 7 days a week.
Probably will not be a customer of food delivery. Some things are ok but, fruit and vegetables must be perfect in that the thought of someone choosing individual pieces for me will fail on the the first delivery that contains poor or bad quality in either damaged, under or over ripe, fruit or vegetables. In the case of the other items such as bread, there is the sell by or use by date. Again, if the purchase by or use by date is the date of delivery or soon there after then a failure is introduced into my experience and a discontinue of the service will probably occur.
how hard is it to get in to Y combinator?
Obviously I think my idea is the best idea in the world along with everyone else that applies but anyone know their acceptance rates?
I just adore this show. Thanks for putting them out.
Thank YOU for watching!! - Tom
What's with the PDVSA logo on the shirt? Do you have Venezuelan criminal government as sponsor????
I love these companies but I'm always curious . . . What the heck are you doing with millions of dollars in a start up? I understand valuations vs actual investments but these seed funds always make me wonder . . .
Early building lease and early teams prior to revenue take a ton of money... your instincts are correct, though. Thanks, Tom
Amazon buys earth.
#Simple
Their website sucks - I believe they will not have lots of success, at least for now. matt
As an Instacart delivery driver, I can tell you Instacart is a complete failure. Customers and drivers complain non stop. App problems almost everyday if not 2 or more times a day. Apu doesn't give a fuck about his business. 🤣
Good One! On another note, Pinduoduo started in 2015 and it's IPO is coming soon. mkt cap pegged around $22bn. damn!
This industry, e-commerce in general is a pretty ugly battle to get into as a startup with Amazon and other e-commerce giants. Unfortunately, it's the industry with most of the market.
@ Valueteinment > It will be nice if you can also Research and talk of Germany Top Companies/ startup
Nice of this guy to take time off from his full-time job on a NASCAR pit crew to make this video.
They will get competition soon, biz tycoons will not sit idle and just watch one company fly.
Agree with you - that’s why they are driving to make partners with other grocery stores. Thanks - Tom
Valuetainment have they gotten partnerships with stores like publix or food city? In both of the areas i live in, they are some of the biggest stores out there aside from Wal-Mart.
I hope for the success of instacart... i want to see Jeff besos shit bricks over competition of his brand new pet project with whole foods.
@@VALUETAINMENT It take BALLS of steel to even think about and carry out a venture like this going against the biggest giant in the world its 2020 & Mehta is worth over 400 million.
instacart doesn't stand a chance. i just checked, they're not available in my location and they forced me to create a fake account to find that out.
Delivery drivers should get paid $100 an hour for moving all the crap out there these days.
Another great one why don't you do a case study on the UFC Dana and the Fertita brothers extraordinary things and they had battle with the government to legalise it and cooperated with the government and they are now at the forefront in battling PED use in sports. It's a good one.
Please make the video on Lendingkart a fintech company in india growing eavery year in double digit
I gotta get me a "DAMN!!" T-shirt.
Do they exist? Lol
Coming soon to the Valuetainment store. Thanks Tom
Yes they exist you can find it in Amazon.com LMAO 😂
Finance class!!Finance class!!Finance class!!Finance class!!
Next!!Next!!Next!!Next!!Next!!
I hear you - coming soon. Thanks, Tom
I've been getting groceries delivered once a month by a semi local grocery store chain (supplemented by another delivery service for bulk frozen goods) for a decade or so. so helpful for disabled people like myself.
Amazon will just buy them if they are a real threat. Probably the exit strategy anyway is to sell to Amazon
i am your fan tom ,thankyou for valued content :)
Thank you sir!!! Thanks - Tom
Everyone should afraid of ninja cart, flipkart
Do you think the same thing will happen to Amazon as Bell corporation (AT&T) back in the day???
At some point in time Amazon will 100% dominate one market segment and it will not be good for the consumer. But remember, over the next 20 years AT&T got put back together again. Thanks - Tom
Can you do a case study for CGG? The stock is worth almost nothing now.
I find it odd that in 2018 grocery delivery companies are a new thing. We have been having groceries delivered in the UK for 10 years.
Market is always changing and available elsewhere
Fabulous video with terrific insights. Thank you!
They don't stand a chance competing with Amazon lol
grocery delivery is not new in my country. its been around longer than instacart
Instacart tried to screw their employees but they screwed themselves.
What about Postmates, aren't they do a similar service?
We are all waiting for the Lamborghini case study!
Don't pretend you are not hearing us!
No pretending. Thanks Tom
Thank you, Tom!
Please do mcdonalds past 20 years. Or barkbox or another large subscription box
Walmart is also looking to invest upto 10 billion USD in Flipkart which is Amazon's competitor in india
Siddhant Kumar flipkart is useless
So basically Amazon is acting like a mafia.
I'd prefer the mafia or Amazon over Instacart's current management.
What is he wearing? He looks like a stock car driver : )
Great video!! Make a video about Shopify!!
I like that idea. Thanks, Tom
I would NEVER EVER use any online grocery delivery service because I don't trust anyone else other than myself to handle my food!
eddsterrr b you do know that your food is handled like five times from farm to store, right.? How ever picking fruits ripe or expired is out if your hands
Amazon should worry about anythingandmore.com
How much instacart % from grocery store.
Does anyone think that Amazon one day will turn into a Monopoly?
Funny how they're already destroying Walmart (a monopoly itself).
You only have to capitalize the M on monopoly if you're talkin about the board game.
@@MafiaGameVideos now Walmart are getting back and have a good shot
I learn this channel more than on what they teach University
How is this company worth 4.2B? It's so easily copied and not only that but it has no potential anywhere else, grocery delivery has existed for ever... it's really not so great, maybe we are heading towards another bubble.
L Chen agree with ya, Amazon's already breaking into the market and can offer free delivery with same day overnight or 2 day shipping. Valuations are just a headline press release. Here today, gone tomorrow. But I can see how grocery delivery is a very live fresh market waiting for some seamless brand to unify all stores.
postmates wasn't mentioned and I'm not sure of their financials but these ideas have been around forever so there already is a heavily competitive market. Grocery delivery service is not new but with the advent of Internet based technologies it will be interesting to see how it changes the landscape for available services. It really could create another household name and a strong competitor if they play their cards right. A few years ago nobody even used the word "uber".
The unicorn valuations are pretty crazy. Now they have to execute and maintain. That’s why say DAMN when I see $4.2 billion valuation! Thanks - Tom
They won't be able to maintain if they keep underpaying their workforce. If they don't revamp the compensation model, they're doomed.
Your case studies are amazing! Thank you so much Tom
amazon will own it or burn it for sure...they did it to billion dollar companies toys r us, wholefoods , target etc..!!
May people agree with you - time will tell. Thanks, Tom
Wow amazing sir... Hats off to your works
free market capitalism is a beautiful thing
I think this will be a great long term short opportunity. Ala $SNAP.
First they need to file S1 so that we can review it ahead of the IPO. Probably another nine months before we see that but then you may be exactly correct. Thanks - Tom
Kindly do a study on Grab Taxi
we have that same service in our local.
Great! 1 million is going to happen soon
lol he quitted because he was bored
What is a two billion dollar run rate?
Instacart's last-mile model is more cost effective than Amazon Fresh which channels everything through its gargantuan fulfillment centers, even when it's locally sourced. But Instacart's crowd-sourced courier model is proving unreliable. And when people pay for goods online, you better deliver, and get the order right.
Great content learnt alot about strategy
Is that a mustache?
It’s a very very very very very small mustache. Thanks, Tom
Amazon's scorched earth worker abuse will be its downfall. Instacart, esp with similar pricing/service, is insta-winner.
Amazon is delivering it's own packages in major cities with independent contractors. Something like 30 cities. The packages are fulfilled then freighted to local delivery stations then dispatched to costumer via contractor personal car. Prime now and logistics. They pay they're drivers better, they do it better, this move greatly increases profits by minizing shipping costs. In Louisville they deliver up to 20,000 packages a day. Amazon will crush them. They are incredibly innovative and effecient.
You are correct. But Instacart has the relationships with the major grocery stores right now and none of those want to do business with the devil = Amazon. Time will tell how all of the shakes out. Thanks Tom
Valuetainment
agreed, i mean, we only need to look at what happened with toys r us to see how doing business with a major giant can turn out (once they understand the logistics of anything, they turn around and destroy you at your own game)
I don't get it, why would you pay someone to get your groceries for your from the store you usually go to. They normally all ready have their own delivery service and the service is normally free, given that they order enough (which they normally do). What makes instacart so different?
A lot of misinformation in this one.
That sunday delivery was from Amazon Flex, Amazon's Uber-like delivery app/gig.
Hey Tom, could you do a case study on the Xbox Kinect and why it was such a failure, despite Nintendo's success with the Wii.
Tom i found your video today, i am really much into tech startups, businesses and what works and what not, your channel is going to be my go-to-place on youtube!
Yes, home delivery services are growing. However, the smart grocery chains are turning their stores into "shopping experiences ". We have two grocery chains in our market that offer this, and remember, a delivery service can't offer that.😊
Surely you're already aware of the Dropbox IPO. I'm curious if you're going to make an analysis video.
Same-day battery delivery? DAMN!!!
Yes it happened - amazing stuff. Thanks, Tom
Please do one of Rappi please
This is ridiculous. So much... So much, too.much money just to start and maintain a business? Why?
Shipt is another company that is like Instacart though they are recently got bought by Target Corporation that is kind of interesting considering that Shipt still has contracts with Target grocery and general store competitors.
Tom this is another company that has rapid growth. Another great case study. Was the notes where too much work to make? Seems like having that on your website would bring in some views by making the content of the
show notes searchable on search engines. Take care and hope to see that MLBAM case study.
I use to work at WebVan
This is great video and a great account there is no account out there Like this hope you guys get to 1 million and to more and more subscribers this account is literally giving free high quality advice on entrenprenureship and many other case studies. There is no other place where you can get this high quality valuable entertainment
lol love the videos. I dont know why but when i look at his mustache it reminds me of someone who just went into a blizzard and their mustache froze.
The peril of white whiskers. Thanks - Tom
LOOOLLLL WTF