Online Grocery-Delivery Services

For many years people have been buying books, clothing, and housewares online. Why not groceries? The grocery industry in the United States generates more than $600 billion in sales. Nearly everyone shops for groceries and an overwhelming majority shop for groceries at least once a week. Online grocery-shopping services offer the consumer convenience, but many times this convenience comes at a price. Because the consumer is paying someone else to shop for them, in order to pay these employees companies may charge higher prices for the groceries themselves and charge for shipping or delivery. Also, the consumer has to trust that the online grocery-shopping service employees will select the best produce, meat, and other perishable items and deliver them to their door in a timely manner and in good condition.

Despite many of the drawbacks, consumers are spending billions shopping online for groceries. Today’s market size is the total amount consumers in the United States spent online for groceries in 2016, a more than 160% increase in spending over 2015. Also included are projected sales figures for 2025.

Geographic reference: United States
Year: 2016 and 2025
Market size: $42 billion and more than $100 billion respectively
Sources: Trejos, Nancy, “Hotels Find Alternatives to Room Service,” USA TODAY for the Lansing State Journal, August 14, 2017, page 5B; Kestenbaum, Richard, “Why Online Grocers are So Unsuccessful and What Amazon is Doing About It,” Forbes, January 16, 2017 available online here.
Original source: Morgan Stanley
Image source: JoyintheCommonplace, “List-plan-phone-to-do-list-1474674,” Pixabay, June 23, 2016 available online here. Original image has been modified.