Dive Brief: The Save Mart Companies has launched two-hour grocery delivery in California’s Central Valley in partnership with Amazon, the West Coast supermarket chain announced Thursday.
Link: Save Mart adds Amazon as delivery provider | Grocery Dive
This is so fascinating.
The new service, which requires shoppers to be part of the Amazon Prime membership program, carries a delivery fee that starts at $4.99, according to the announcement
Um… This is a trap right? You are a grocer, Amazon is a grocer. And you are signing up your shoppers to Prime?
Are grocers really this desperate? I dont see how this ends well for SaveMart.
It only works for Prime Members. The delivery fee starts at $4.99 which is less than even the $10 Whole Foods delivery fee. SaveMart is even kicking in 15% off the order to incent the behavior, too.
So let me get this straight:
- Amazon is a grocer, whose Fresh is still expanding across the US.
- SaveMart does not promote its own loyalty program. They are making Prime stronger.
- Instacart has a lot to lose here, as they appear to be the primary SaveMart delivery provider today.
- Amazon likely getting more transactional data from grocers with this.
- … and the grocer is kicking in 15% as an incentive?
Not only is this letting the fox in the henhouse, it’s leaving money for it when it gets there to take the hen!
How is Amazon so good at designing these traps?
This makes my head spin but shows how desperate grocers are. Save Mart is PE owned, so I guess they don’t want to invest in fulfillment and rather lose their customers to Amazon. SaveMart is essentially a lead gen tool for Prime.
Amazon over the last two decades has absolutely perfected what is internally called project Gazelle.
The Gazelle Project. That’s what Amazon called its initiative to cajole book publishers into giving them better deals. According to The New Yorker, CEO Jeff Bezos said “that Amazon should approach these small publishers the way a cheetah would pursue a sickly gazelle.”
Savemart is obviously severely wounded and yes this is most definitely a trap!
This is a tough quote to live down
This could be a first I am aware of, a double gazelle project? As you mentioned this will not be good for Instacart. With one move they get two maybe?