Flat-pack ready meals

Last week with my MSc economics students we spent some time brainstorming different business models for delivering groceries ordered online.  Internet supermarkets such as Ocado, or Tesco’s online presence, adopt one model which combines the range of products that you’d find in a mainstream supermarket, with home delivery.  Asda’s enterprise at London Underground stations is a neat variation of this, and from the supermarket’s viewpoint is a low-cost bolt-on to their existing model because if you can load up a van with groceries for home delivery, you can also load up a van to be serve commuters passing through the station car park.

But there are also models which vary the approach to supplying the food.  The fresh vegetable suppliers, Abel and Cole and Riverford, are examples of this.  So is Hubbub, which works on sourcing food from small retailers.  Interestingly, they compare themselves to Ocado, which is undoubtedly valid in terms of their target market and the importance of service.  However their approach to logistics is at the opposite end of the scale to Ocado, who seek to gain economies of scale by serving a very large number of customers from a single distribution centre, and indeed by working with Morrisons in parallel to its own brand operations in conjunction with Waitrose.

One other model which is worth a look is exemplified by a company called Gousto.  Like Ocado it was set up by former bankers and it has now attracted some investment from Unilever.  The idea is that they deliver a box of ingredients, together with the recipe, so that customer can cook their own meal but can follow the recipe precisely.  I guess that part of the inspiration for this comes from flat-pack furniture, where you can buy a box containing all the components of your furniture but you still need to put it together.  Think of Gousto’s boxes as a flat-pack ready meal

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


%d bloggers like this: