

Instacart (YC S12) is now not just easier, but cheaper  - kevingibbon
http://blog.ycombinator.com/instacart-yc-s12-is-now-not-just-easier-but-cheaper-than-buying-groceries-from-the-store-too

======
kevingibbon
"While Instacart founder Apoorva Mehta would not explain exactly where these
groceries come from, he guaranteed they are cheaper."

Is Instacart getting into the shoplifting business?

~~~
product50
It is not really difficult to imagine this. For example, Safeway near the
Caltrain station in SF has exorbitantly priced groceries than Costco or
Safeway in Sunnyvale. They maybe using this to their advantage. Hence, for a
SF user, it might be cheaper still to use Instacart which in turn gets its
groceries from other cheaper stores. And since they do this in bulk, the
economies of scale sides with them.

~~~
minimaxir
Even in bulk, the cost of transport from Sunnyvale to SF is not trivial.

~~~
product50
$200 - if I am getting groceries for 100 users (and making $5 per order), it
should be good.

------
nlh
A thought: When prodcuts go "white label", it's often because the company (or
supplier) behind them wants the benefit of the sales without the hit to the
brand.

So my guess is that they struck a deal with either a particularly eager
Safeway/Walmart/Costco/etc. store manager(s) to move increased volume at
slightly lower margins or as another commenter suggested, a deal with one of
the associated distributors.

The key seems to be the lack of details, which means someone doesn't want us
to know where the goods are coming from. This is why I'm guessing an eager
manager, etc. who would get heat from "corporate" or "national" for
undercutting other stores, or something like that.

Anyway, once again, competition happens, consumers benefit. Good for them/us!
:)

~~~
keenans
The milk and packaged seafood are clearly showing Kroger's brand, so perhaps
they quietly struck a deal with Ralphs/Kroger.

------
tptacek
Every time I'm out in SFBA, people I meet up with will not shut up about
Instacart.

~~~
wilfra
Are you an investor in Instacart? Or otherwise affiliated or connected with
the company?

If you are, you might want to disclose that fact when speaking publicly about
them.

~~~
tptacek
What the fuck are you talking about?

~~~
wilfra
I've seen you go to great lengths to defend and assist Instacart on HN[1]. I'm
asking why you do that.

[1][https://news.ycombinator.com/item?id=5482154](https://news.ycombinator.com/item?id=5482154)

~~~
tptacek
Could you be more of a tool? Literally: the only way you can conceive of
someone disagreeing with you on HN is that they must have an undisclosed
financial interest? Go fuck yourself.

~~~
wilfra
"the only way you can conceive of someone [defending a company and later
posting positive statements about that company] on HN is that they must have
an undisclosed financial interest [or other connection or affiliation to the
company]?"

Certainly not. That's why I phrased it as a question. A question you have
still yet to answer.

~~~
HorizonXP
You should look through my comment history too then. I clearly have a
financial interest in BlackBerry and Instacart based on your logic.

------
greghinch
Guessing that either a) they moved themselves up the supply chain or b) they
are selling at a loss to try an boost sales (to try and get to A). B worked
for Amazon, but it's also been the downfall of a lot of co.'s.

Regardless I wish them best of luck, really like the product!

------
GraffitiTim
I tried it out today and it worked great. They call it "Instacart Plus" and it
shows up as one of the store options in the dropdown menu, along with Trader
Joe's, Costco, etc. The delivery arrived at 1:00pm sharp for the 1-2pm
scheduled delivery window.

------
kevingibbon
my theory on this "secret" price savings.

Instacart asks if an item is out of stock if it ok to replace with similar
items (might even default to this). Instacart has negotiated deals with
product manufacturers directly. Instacart replaces "out-of-stock" products
with the discounted products. The manufacturer issues coupons that can be used
at the till. Instacart takes most of the savings themselves but also shares a
little with the consumer. Win-win-win.

2nd Theory. Apoorva has developed the largest coupon clipping operation to
date. Puts "extreme couponing" TV show to shame.

~~~
HorizonXP
Apoorva's got enough hustle to make the 2nd theory viable. However, he's also
lazy like most of us, so that casts doubt on that theory.

------
ruswick
I can understand why Instacart may be of value in suburban or rural areas
where people likely don't have trivial access to grocery stores, but it seems
entirely superfluous for city-dwellers.

Grocery stores are fairly abundant in cities. Within a four-block radius from
my house, there is a Jewel, a Whole Foods, four corner stores, and a Trader
Joe's under construction. I honestly don't know how Instacart maintains
business in San Francisco proper.

~~~
nairteashop
Well, I live in SF. As you say, I have several grocery stores within 0.5 miles
of my home. The problem? I live on top of a hill; the stores are at the
bottom. There is absolutely no way I'm lugging grocery up the hill on foot or
on my bike. What about public transport? There is a long wait (muni sucks, esp
where I live), and then there is still a bit of lugging to/from the bus stop.

Grocery shopping is literally the only reason I still own a car and pay
ridiculous city insurance rates. I don't use it to go to work, meet friends
for dinner/drinks, or anything else for that matter.

And then of course, there are times when I couldn't be arsed to go grocery
shopping :)

~~~
HorizonXP
I'm currently in Palo Alto, and I do not have a vehicle, except for a bicycle.
I will see how long I can hold out, but so far, I've bought all of my
furniture and household items through Amazon and a local dealer, and had them
delivered. Groceries come from Instacart.

Tomorrow, I need to go to Ikea to get some other items, since I wasn't a fan
of what's available on Amazon, or the pricing on other sites. I plan to use
ZipCar.

Instacart is one of the many services that are helping me to lead a car-free
lifestyle here in Palo Alto. I'm from Toronto, and I wish I could have
accomplished the same when I was there.

~~~
kevingibbon
I didn't realize no car in Palo Alto+ was doable.

I do the above in SF.

