It was less than a week into the fourth quarter of 2020, when GrubMarket, a grocery delivery platform, announced that it had raised $60 million in a new round of funding. The startup hadn’t planned on raising more than $20 million, but in our pandemic altered world, GrubMarket is now worth between $400 and $500 million.
Grocery delivery is one of the few trades making it out of coronavirus unscathed. According to grocery consulting firm Brick Meets Click, grocery delivery customers ballooned from 13.1 million in August 2019 to 43 million in May 2020. Customers’ hesitance to be in a crowded store cemented the popularity of delivery services.
This is likely the new normal, even after the pandemic ends. In August, the IBM Retail Index found that the coronavirus had accelerated e-commerce growth by five years.
As with any change, there are growing pains. The rising popularity of grocery delivery will inevitably generate concerns about compliance, food safety, and waste with grocery store managers. Matters like warehouse space or automation may be familiar territory for apparel or furniture, but they raise questions that are still novel for many a grocer. As for customers, years of delivery tracking and conscious consumption have primed them to want to know more about where their food comes from and how it gets to their kitchen.
Of course, the challenges aren’t limited to stores. Some challenges that logistics service providers can expect to see include meeting a short delivery window (one-hour delivery, anyone?), being on time, and delivering in the first attempt.
With so many changes happening so quickly, the last thing that producers should have to worry about is spoiled or damaged food. This is why a resilient cold chain is so important. If you are looking for a way to move your temperature-controlled produce, reliably, dedicated, with the right technology in place, give us a call!
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