Jobs listings on various websites suggest Amazon is hiring employees to work in the restaurant department. Rumors have been circulating hinting the eCommerce retailers possible entrance into the increasingly crowded on-demand delivery market.
A new wave of ventures center on bridging gaps between consumers and goods. Much like the early 2000 with the rise and fall of Webvan and Kosmo, new startups are once more paving the way for on-demand delivery. In previous years consumers and companies alike witnessed the collapse of delivery services for many reasons. Web-enabled delivery was never tangible due to the cost of constructing warehouses, inventory management, and labor. Until recent social stigma has proceeded any company trying to enter the market.
On-demand delivery startups continue to gain traction, investments, and partnerships that is spurring the distribution race. Companies like DoorDash, Postmates, Instacart, and even Uber have raised billions of dollars in funding.
Uber is trying to expand from transporting humans to goods from restaurants and stores with UberEats. Postmates works as a network of couriers in various metropolitan areas, delivering food and home items. One hour grocery store delivery concept, Instacart delivers fresh produce right to your door.
Society has caught up with the technological boom and unlike the previous generation of delivery startups, many tech shortcomings have been filled. In the early 2000 only about half of Americans had internet at home compared to 98% today. Smart phones and tablets also create a large pool of potential customers.
Operators continue to close the gaps with software and algorithms. Through apps customers can purchase anything with the tap of a finger. Software enables companies to calculate minimum time for the order to arrive at its destination in order to increase the maximum number of deliveries.
Other than Amazon who has excelled in building huge warehouses to hold inventory, most delivery services act as a middleman. Previous delivery startups failed in part of supply. Instead of having huge warehouses, truck, and full time delivery associates, companies work through a network of couriers, independent contractors, and business owners.
Instacart, operates in 17 urban cities but only has approximately 100 employees at their San Francisco headquarters. Compared to Webvan who constructed several 350,000-square-foot warehouses for $35 Million dollars, Instacart’s startup cost were relatively low.
Instacart charges $3.99 for delivery and its “personal shoppers” make around $20 per hour plus tips. This may seem unprofitable but these startups come well equipped with ample amounts of funding. Most seem to be focused on growth rather than profits.
Amazon has out shined many eCommerce retailers with ample warehouses and hubs, which help promote speedy delivery. They offer one-hour, two-hour, one-day and two-day delivery for thousands of products. Meal delivery is clearly the next move for the retailer who has been increasing the amount of services it offers. Current services include finding plumbers for hire or scheduling a local vacation.
Amazon Restaurant is said to begin operations in New York and its hometown, Seattle.
According to Reuters, there are about 15 jobs opening for this new department. A few other postings for “Amazon Restaurant and Travel,” which seems to be its own entity, have also been posted. Of late five current Amazon employees have changed their job titles on LinkedIn to Amazon Restaurants.
Geekwire recently reported Amazon had been testing delivery in Seattle using Prime Now drivers. Amazon Local already allows customer to place orders at nearby restaurants in Seattle for pickup or delivery by restaurant staff.
Sintel Systems is the only direct to end user full-service provider of tailored Point of Sale systems across retail, restaurant and service industries, including frozen yogurt shops, pizzerias, sushi restaurants, and cafés.
As a single source for business solutions, our experienced, knowledgeable team negotiates the complex POS landscape for you to enable you to find the right POS system for your business and budget. Hardware – Software – Support