Wall Street Journal: Chris Baker On Food Delivery In Rural Markets
Mar 12, 2019
The Wall Street Journal published an article on how food delivery companies are racing to reach smaller markets in cities and suburbs across the US, but there may be some risks.
However, the risks could be worth it because operating in suburbs and small towns could end up being cheaper in the long run as labor, advertising and materials are generally less expensive than in larger cities.
One challenge for grocers, is that perishables are particularly expensive to ship, said Chris Baker, a partner at consulting firm Oliver Wyman. Grocery delivery can only work profitably in around 40 U.S. markets, he said.
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