How Send and their dark supermarkets are revolutionising the online delivery sector.
The concept is simple, ‘dark supermarkets’ are a warehouse that supply online customers with groceries in ten minutes. The warehouse acts as a fulfilment centre for online orders and cuts out the need for expensive overhead costs or added labour, saving the operators money and resources.
Dark supermarkets are not a new concept. In fact, Australian retailer Woolworths introduced their first dark warehouse to Australia in 2014. Since, rival Coles have invested and followed suit, with dark warehouses of their own opening up.
It is easy to see why our large Australian retailers are making the switch, factors such as greater demand for convenience and delivery and lower running costs. Now, new retailers such as Send are starting to join in and causing disruption to the market with grocery delivery in only ten minutes. Woolworths offer delivery ‘now’ for $15, but there is no guarantee how fast that option will be. Coles offers delivery within two hours for $11. This leaves the barrier to entry wide open for innovators to enter the market and take share.
Send customers in Victoria and New South Wales can now enjoy having one or just a few items at their doorstep, in ten minutes, with the company claiming ‘We want to reinvent the humble supermarket and change the way we shop for one of life's most basic daily needs, groceries’ as their mission. With the freedom and flexibility of a brand new business model, disruptors like Send have an opportunity to command more market share over time as they keep their costs low and continue to delight consumers.
Is the Send business model scalable elsewhere?
The short answer? Yes. In busy capital cities such as Sydney and Melbourne, the delivery time will always remain subject to situational factors like traffic, road closures and accidents. In order to route drivers the best possible way, it is necessary to have technology that can aggregate all of the live data and suggest the quickest route with consideration to all situational variables.
The HERE Tour Planning API is the very best on the market for just that. With the ability to display not only traffic and road conditions, but more detailed features too - it has been voted the number one mapping and location platform on the market. HERE maps can provide the most accurate data and routing compared to any other provider. Features such as wayfinding for complex delivery destinations like apartment buildings or commercial sites where there could be multiple entry ways are what sets HERE apart from the competition.
This kind of consumer satisfaction shouldn't be isolated to only retail. Why couldn't other sectors introduce this kind of service? With proven success for this business model, consumers tending to desire more convenience and less physical shopping experiences, companies have an opportunity to offer exceptional delivery services and enjoy the customer loyalty and satisfaction that follows.
Where to from here?
Ready to take the next step in perfecting your delivery offering? Get in touch with Next Mile Location Technology, we would be delighted to help. Next Mile is a distributor of HERE Technologies across Australia and New Zealand.