{"id":843,"date":"2016-11-21T13:49:17","date_gmt":"2016-11-21T13:49:17","guid":{"rendered":"https:\/\/www.argonandco.com\/?post_type=article&p=843"},"modified":"2021-09-01T12:25:47","modified_gmt":"2021-09-01T11:25:47","slug":"amazons-disruption-of-the-grocery-food-delivery-and-home-care-industry-could-spark-unlikely-alliances","status":"publish","type":"article","link":"https:\/\/www.argonandco.com\/en\/news-insights\/articles\/amazons-disruption-of-the-grocery-food-delivery-and-home-care-industry-could-spark-unlikely-alliances\/","title":{"rendered":"Amazon\u2019s disruption of the grocery, food delivery and home-care industry could spark unlikely alliances"},"content":{"rendered":"

Amazon\u2019s recent advances into the homecare and food delivery market, following the much vaunted expansion of its pre-existing delivery deal with Morrisons, the rumoured launch of a new housekeeping service, as well as Amazon Restaurants and Amazon Fresh services, could result in incumbent players taking drastic measures to combat the e-commerce giant. This is according to Nick Miller, head of FMCG at Crimson & Co, who predicts that Amazon\u2019s competitors could form unlikely partnerships in order to avoid losing ground to Amazon.<\/span><\/p>\n

Amazon announced last week that it would be extending its existing delivery deal with Morrisons\u2019 to offer one-hour grocery deliveries to selected postcodes in London and Hertfordshire to Amazon Prime Now customers, a service which has been named \u201cMorrisons at Amazon.\u201d<\/p>\n

Meanwhile, advertisements were seen in the US media two weeks ago for \u2018Home Assistants,\u2019 who would work with customers to tidy people\u2019s homes, do laundry, put groceries away and \u201cassure that customers return to an errand-free home.\u201d If true, this new service would be another convenience to Amazon Prime Now customer who already have access to Amazon Restaurants (a home food delivery service) as well as both Morrisons at Amazon and Amazon Fresh for same-day deliveries on a massive range of fresh and frozen grocery goods.<\/p>\n

\"\"<\/p>\n

Nick commented on the moves, and what it means its competitors: \u201cIt\u2019s pretty clear that Amazon\u2019s aim is to be the one-stop-shop for all domestic-life conveniences. Whether that be shopping, groceries, takeaways or cleaning, they want to lead the market \u2013 it\u2019s an incredibly obvious and yet aggressive strategy.<\/p>\n

\u201cConvenience, as mentioned is the key word \u2013 the customer, for the sake of an annual fee (that being your Prime subscription) has a central platform where they can access a wide variety of services and products at their ease and with confidence in Amazon\u2019s established reputation. As this service becomes more and more engrained amongst users, loyalties to competitors will increasingly be challenged \u2013 simply, why go to four places when one does it all?\u201d<\/p>\n

Nick continues: \u201cWhile on paper these plans are impressive there are questions Amazon will need to address as these markets often entail more complex service demands and delivery requirements.\u201d<\/p>\n

Services like Handy and Hassle are dominating players in the homecare market. Deliveroo, has developed a leading position in London\u2019s \u2018last-mile\u2019 food delivery market, but this has recently seen threats from Uber with the entry of UberEats. Meanwhile, many of the big supermarkets maintain grocery delivery services. Ocado, the online grocery specialist which supports Morrisons\u2019 website, saw its shares fall by 8.5 per cent in the wake of the news of the Morrisons news.<\/p>\n

As Amazon refines and expands its services, these incumbent players will likely need to innovate to remain competitive. Nick expands on some of the options available to them: \u201cIt\u2019s clear from the diminished outlook on Ocado that Amazon is a major menace to all players in the food delivery market. Any company seeking to compete with Amazon in this market will need to match it on convenience and come close to it on the variety and breadth of its offering.<\/p>\n

\u201cThis could be done through innovations in a number of areas. Amazon has set a forceful example here with its partnership with Morrisons, and a fast-follower strategy could be appropriate \u2013 creating a more compelling offering through unusual partnerships. For example, a \u2018last-mile\u2019 deliverer such as Deliveroo could partner with a supermarket to offer grocery shopping and takeaways in one integrated platform. One service providing a weekly shop and an evening curry through the same account could be a powerful convenience offering to rival Amazon\u2019s combination of Restaurants and Fresh.<\/p>\n

\u201cMoreover, in this theoretical example, the supermarket benefits from Deliveroo\u2019s expertise in \u2018last-mile\u2019 delivery, whilst Deliveroo gets access to a wider customer base. This demonstrates how unlikely partnerships could provide a route to superior service in delivery. Joining forces with local transport businesses, such as taxi firms, could also provide a boost to delivery speeds. Either way, thinking laterally and tapping into pre-existing networks could help companies to compete with Amazon.<\/p>\n

These ideas, however, do not come without their own obstacles, and Nick commented on some of these: \u201cThese kind of innovations would undoubtedly bring a number of logistical challenges, not least the alignment of the delivery chain to enable the fastest and best possible experience for the customer, as well as the coordination of logistics and digital platforms between two companies. However, approaching the problem from this angle could prove vital for any company attempting to see off Amazon \u2013 a giant with huge resources and clout behind it.\u201d<\/p>\n

 <\/p>\n

Read the full coverage here:<\/cite><\/p>\n

SHD Logistics<\/a><\/cite><\/p>\n

Supply Chain Digital<\/a><\/cite><\/p>\n

Produce Business<\/a><\/cite><\/p>\n

News of the Gig Economy<\/cite><\/p>\n","protected":false},"featured_media":5184,"template":"","categories":[],"region":[158,159,160,161,162,240],"class_list":["post-843","article","type-article","status-publish","has-post-thumbnail","hentry"],"acf":[],"yoast_head":"\nAmazon\u2019s disruption of the grocery, food delivery and home-care industry could spark unlikely alliances - Argon & Co<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.argonandco.com\/en\/news-insights\/articles\/amazons-disruption-of-the-grocery-food-delivery-and-home-care-industry-could-spark-unlikely-alliances\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Amazon\u2019s disruption of the grocery, food delivery and home-care industry could spark unlikely alliances - Argon & Co\" \/>\n<meta property=\"og:description\" content=\"Amazon\u2019s recent advances into the homecare and food delivery market, following the much vaunted expansion of its pre-existing delivery deal with Morrisons, the rumoured launch of a new housekeeping service, as well as Amazon Restaurants and Amazon Fresh services, could result in incumbent players taking drastic measures to combat the e-commerce giant. 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