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Kroger Bets on Uber for Grocery Delivery at Scale | Fast Five Shorts · Omni Talk Retail

• 0:00
  Kroger
• 0:00
  has
• 0:00
  launched
• 0:01
  fast,
• 0:01
  convenient
• 0:02
  delivery
• 0:02
  through
• 0:03
  Uber's
• 0:03
  apps
• 0:04
  nationwide,
• 0:04
  making
• 0:04
  nearly
• 0:05
  2,700
• 0:06
  stores
• 0:06
  available
• 0:07
  on
• 0:07
  Uber
• 0:07
  Eats,
• 0:08
  Uber
• 0:09
  and
• 0:09
  Postmates.
• 0:10
  God,
• 0:10
  remember
• 0:10
  Postmates
• 0:11
  and
• 0:11
  geez,
• 0:11
  it's
• 0:12
  been
• 0:12
  a
• 0:12
  long
• 0:12
  time
• 0:12
  since
• 0:12
  they
• 0:12
  came
• 0:13
  up.
• 0:13
  According
• 0:13
  to
• 0:14
  a
• 0:14
  joint
• 0:14
  press
• 0:14
  release,
• 0:15
  customers
• 0:15
  can
• 0:15
  now
• 0:16
  shop
• 0:16
  from
• 0:16
  Kroger
• 0:17
  banners
• 0:17
  including
• 0:17
  Ralph's,
• 0:18
  Fred
• 0:18
  Meyer,
• 0:19
  King
• 0:19
  Soopers,
• 0:20
  Smiths,
• 0:20
  Fry's,
• 0:21
  Harris
• 0:21
  Teeter
• 0:22
  and
• 0:22
  Mariano's
• 0:23
  with
• 0:23
  on
• 0:23
  demand
• 0:23
  and
• 0:24
  same
• 0:24
  day
• 0:24
  delivery.
• 0:25
  To
• 0:25
  mark
• 0:25
  the
• 0:25
  launch,
• 0:26
  Uber
• 0:26
  is
• 0:26
  offering
• 0:27
  customers
• 0:27
  discounts
• 0:28
  of
• 0:28
  up
• 0:28
  to
• 0:28
  50%
• 0:29
  off
• 0:29
  their
• 0:29
  first
• 0:29
  order.
• 0:30
  Uber
• 0:31
  One
• 0:31
  members
• 0:31
  will
• 0:31
  receive
• 0:32
  $0
• 0:33
  delivery
• 0:33
  fees
• 0:33
  on
• 0:34
  eligible
• 0:34
  orders.
• 0:35
  Kroger
• 0:36
  already
• 0:36
  expanded
• 0:36
  its
• 0:37
  partnership
• 0:37
  with
• 0:37
  DoorDash
• 0:38
  to
• 0:38
  2,700
• 0:39
  stores
• 0:39
  nationwide
• 0:40
  last
• 0:40
  fall
• 0:41
  and
• 0:41
  has
• 0:41
  offered
• 0:41
  delivery
• 0:42
  through
• 0:42
  Instacart
• 0:43
  for
• 0:43
  several
• 0:43
  years,
• 0:44
  showing
• 0:44
  the
• 0:44
  grocer
• 0:45
  is
• 0:45
  aggressively
• 0:45
  pursuing
• 0:46
  all
• 0:46
  delivery
• 0:47
  channels.
• 0:47
  This
• 0:47
  also
• 0:48
  intensifies
• 0:48
  competition
• 0:49
  among
• 0:49
  major
• 0:50
  grocery
• 0:50
  delivery
• 0:50
  platforms
• 0:51
  and
• 0:51
  comes
• 0:51
  as
• 0:51
  Kroger
• 0:52
  looks
• 0:52
  to
• 0:52
  expand
• 0:52
  its
• 0:53
  digital
• 0:53
  footprint.
• 0:54
  While
• 0:54
  food
• 0:54
  prices
• 0:55
  remain
• 0:55
  the
• 0:55
  most
• 0:56
  frequently
• 0:56
  cited
• 0:57
  source
• 0:57
  of
• 0:57
  stress
• 0:58
  for
• 0:58
  consumers
• 0:58
  and
• 0:59
  distribution,
• 0:59
  does
• 0:59
  KRoger
• 1:00
  need
• 1:00
  both
• 1:00
  DoorDash
• 1:01
  and
• 1:01
  Uber?
• 1:02
  How
• 1:02
  do
• 1:03
  you
• 1:03
  think
• 1:03
  about
• 1:03
  that?
• 1:04
  Yeah,
• 1:04
  I
• 1:04
  don't
• 1:04
  see
• 1:05
  why
• 1:05
  they
• 1:05
  wouldn't
• 1:05
  be
• 1:06
  on
• 1:06
  every
• 1:06
  platform
• 1:07
  possible,
• 1:07
  especially
• 1:08
  with
• 1:08
  the
• 1:08
  changes
• 1:08
  that
• 1:09
  they've
• 1:09
  been
• 1:09
  making
• 1:09
  with
• 1:10
  Ocado
• 1:11
  and
• 1:12
  their,
• 1:12
  their
• 1:13
  distribution
• 1:14
  centers
• 1:14
  with
• 1:15
  them.
• 1:15
  I
• 1:16
  think,
• 1:16
  you
• 1:16
  know,
• 1:16
  look,
• 1:17
  it
• 1:17
  gets
• 1:17
  people
• 1:18
  access
• 1:19
  to
• 1:19
  groceries
• 1:20
  and
• 1:21
  to
• 1:21
  food
• 1:21
  delivery
• 1:22
  and
• 1:22
  to
• 1:23
  essentials
• 1:23
  delivery.
• 1:24
  They,
• 1:24
  it's,
• 1:25
  it's
• 1:25
  really
• 1:25
  just
• 1:26
  beefing
• 1:26
  up
• 1:26
  the
• 1:27
  Uber
• 1:27
  platform.
• 1:28
  It's
• 1:28
  a
• 1:28
  reason
• 1:29
  for
• 1:29
  me
• 1:29
  as
• 1:30
  a
• 1:30
  consumer
• 1:30
  to
• 1:30
  join
• 1:31
  u
• 1:32
  now
• 1:32
  what
• 1:32
  I
• 1:32
  think
• 1:33
  is
• 1:33
  going
• 1:33
  to
• 1:33
  be
• 1:33
  interesting
• 1:34
  about
• 1:34
  this
• 1:34
  is
• 1:34
  what
• 1:35
  kind
• 1:35
  of
• 1:35
  adoption
• 1:35
  they're
• 1:36
  seeing.
• 1:36
  Do
• 1:37
  they
• 1:37
  start
• 1:37
  to
• 1:37
  see
• 1:38
  beyond
• 1:39
  fill
• 1:39
  in
• 1:39
  trips
• 1:40
  like
• 1:40
  are
• 1:40
  are
• 1:41
  people
• 1:41
  going
• 1:41
  to
• 1:41
  the,
• 1:42
  to
• 1:42
  their
• 1:42
  Uber
• 1:43
  platform
• 1:43
  to
• 1:43
  do
• 1:44
  full
• 1:44
  on
• 1:44
  grocery
• 1:45
  orders?
• 1:45
  And
• 1:46
  is
• 1:46
  this
• 1:46
  something
• 1:46
  that
• 1:47
  makes
• 1:47
  sense
• 1:47
  for,
• 1:48
  for
• 1:48
  Kroger
• 1:48
  to
• 1:49
  keep
• 1:49
  in
• 1:49
  operations
• 1:49
  and
• 1:50
  have
• 1:50
  to
• 1:50
  manage
• 1:50
  having
• 1:51
  multiple
• 1:51
  delivery
• 1:52
  drivers
• 1:52
  working
• 1:53
  with
• 1:53
  them.
• 1:53
  But
• 1:54
  I
• 1:54
  do
• 1:54
  think
• 1:55
  it's
• 1:55
  valuable
• 1:55
  and
• 1:56
  it's
• 1:56
  certainly
• 1:56
  worth
• 1:56
  the
• 1:57
  test.
• 1:57
  This
• 1:57
  is
• 1:57
  something
• 1:57
  they
• 1:58
  could
• 1:58
  turn
• 1:58
  off
• 1:59
  at
• 1:59
  any
• 1:59
  given
• 1:59
  time
• 2:00
  if
• 2:00
  it's
• 2:00
  too
• 2:00
  complicated
• 2:01
  or
• 2:01
  not
• 2:01
  working.
• 2:03
  And
• 2:03
  I
• 2:03
  also
• 2:03
  like
• 2:03
  that
• 2:03
  it
• 2:04
  opens
• 2:04
  up
• 2:04
  Kroger
• 2:04
  to
• 2:05
  a
• 2:05
  larger
• 2:05
  pool
• 2:05
  of
• 2:06
  drivers
• 2:06
  that
• 2:07
  are
• 2:07
  on
• 2:07
  the
• 2:07
  Uber
• 2:07
  app
• 2:08
  because
• 2:08
  you're
• 2:09
  not
• 2:09
  just
• 2:09
  limited
• 2:10
  to
• 2:10
  the
• 2:10
  one
• 2:11
  company
• 2:11
  that
• 2:11
  you
• 2:11
  have
• 2:11
  contracted
• 2:12
  with.
• 2:12
  If
• 2:12
  somebody
• 2:13
  wants
• 2:13
  to
• 2:13
  get
• 2:13
  groceries
• 2:14
  delivered.
• 2:15
  I
• 2:15
  mean
• 2:15
  I
• 2:15
  have
• 2:15
  uber,
• 2:16
  I
• 2:16
  have
• 2:16
  DoorDash,
• 2:17
  I
• 2:17
  have
• 2:17
  all
• 2:17
  the
• 2:17
  apps.
• 2:17
  If
• 2:18
  I
• 2:18
  can't
• 2:18
  get
• 2:18
  it
• 2:18
  on
• 2:18
  one,
• 2:19
  I'm
• 2:19
  going
• 2:19
  to
• 2:19
  the
• 2:19
  next
• 2:20
  one.
• 2:20
  So
• 2:20
  I
• 2:21
  think
• 2:21
  as
• 2:21
  that
• 2:21
  becomes,
• 2:22
  I
• 2:22
  think
• 2:22
  an
• 2:22
  increasing
• 2:23
  problem
• 2:24
  for
• 2:24
  a
• 2:24
  lot
• 2:24
  of
• 2:25
  retailers,
• 2:25
  who
• 2:25
  are
• 2:26
  you
• 2:26
  Know,
• 2:26
  just
• 2:26
  using,
• 2:27
  you
• 2:27
  know,
• 2:27
  Target,
• 2:27
  just
• 2:27
  using
• 2:28
  Shipt
• 2:28
  or
• 2:29
  you
• 2:29
  know,
• 2:29
  Walmart
• 2:30
  just
• 2:30
  using
• 2:30
  their
• 2:30
  own
• 2:31
  third
• 2:31
  party,
• 2:31
  you
• 2:32
  know,
• 2:32
  white
• 2:32
  label
• 2:32
  drivers
• 2:33
  that,
• 2:33
  that
• 2:34
  causes
• 2:34
  some
• 2:35
  potential
• 2:35
  friction
• 2:36
  if
• 2:36
  you
• 2:36
  can't
• 2:36
  find
• 2:37
  those
• 2:37
  drivers.
• 2:38
  And
• 2:38
  now
• 2:38
  I
• 2:38
  think
• 2:39
  Kroger's
• 2:39
  got,
• 2:40
  you
• 2:40
  know,
• 2:40
  any
• 2:40
  Uber
• 2:41
  driver
• 2:41
  can
• 2:41
  take
• 2:42
  any
• 2:42
  order
• 2:42
  at
• 2:43
  this
• 2:43
  point
• 2:43
  in
• 2:43
  time
• 2:43
  and
• 2:44
  that's
• 2:44
  giving
• 2:44
  them
• 2:45
  the
• 2:45
  most
• 2:45
  flexibility.
• 2:46
  So
• 2:46
  I
• 2:46
  think
• 2:46
  it's
• 2:47
  a
• 2:47
  really
• 2:47
  smart
• 2:47
  move
• 2:48
  from,
• 2:48
  from
• 2:49
  Kroger
• 2:49
  and
• 2:50
  shows
• 2:50
  that
• 2:50
  they're
• 2:50
  going
• 2:50
  to
• 2:50
  experiment
• 2:51
  across
• 2:51
  the
• 2:52
  board.
• 2:52
  But
• 2:53
  what
• 2:53
  do
• 2:53
  you,
• 2:54
  would
• 2:54
  you,
• 2:54
  what
• 2:55
  would
• 2:55
  you
• 2:55
  recommend
• 2:55
  for
• 2:56
  Kroger
• 2:56
  to
• 2:56
  be
• 2:56
  doing
• 2:56
  when
• 2:57
  they're
• 2:57
  kind
• 2:57
  of
• 2:57
  evaluating
• 2:58
  this
• 2:58
  situation
• 2:58
  in
• 2:59
  the
• 2:59
  post
• 2:59
  Ocado
• 3:00
  world?
• 3:01
  Yeah,
• 3:01
  I
• 3:01
  mean
• 3:01
  I,
• 3:02
  I
• 3:02
  think
• 3:02
  I,
• 3:02
  I
• 3:03
  think
• 3:03
  I
• 3:03
  agree
• 3:03
  with
• 3:03
  you
• 3:04
  in,
• 3:04
  in
• 3:04
  the
• 3:04
  short
• 3:05
  term,
• 3:05
  I
• 3:05
  think
• 3:05
  I
• 3:05
  agree
• 3:06
  with
• 3:06
  you
• 3:06
  in
• 3:06
  the
• 3:06
  short
• 3:06
  term.
• 3:06
  I
• 3:07
  mean
• 3:07
  I
• 3:07
  think
• 3:07
  it's
• 3:07
  a
• 3:07
  smart
• 3:08
  short
• 3:08
  term
• 3:08
  play.
• 3:08
  In
• 3:09
  reality
• 3:09
  100,
• 3:10
  you
• 3:10
  could
• 3:10
  be
• 3:10
  on
• 3:10
  as
• 3:11
  many
• 3:11
  of
• 3:11
  them
• 3:11
  as
• 3:11
  you
• 3:11
  want.
• 3:11
  And
• 3:11
  I
• 3:12
  want
• 3:12
  to
• 3:12
  be
• 3:12
  careful
• 3:12
  how
• 3:12
  I
• 3:12
  say
• 3:13
  this.
• 3:13
  I
• 3:13
  mean
• 3:13
  who
• 3:13
  gives
• 3:14
  a
• 3:14
  shipped
• 3:14
  and
• 3:15
  shipped
• 3:16
  with
• 3:16
  a,
• 3:16
  with
• 3:16
  a
• 3:17
  T
• 3:17
  or
• 3:18
  actually
• 3:18
  with
• 3:18
  a
• 3:19
  P?
• 3:19
  With
• 3:19
  a
• 3:20
  P
• 3:20
  because
• 3:20
  like,
• 3:20
  you
• 3:21
  know,
• 3:21
  be
• 3:21
  on
• 3:21
  ship
• 3:21
  too
• 3:21
  if
• 3:22
  you
• 3:22
  want,
• 3:22
  like
• 3:22
  I
• 3:22
  don't
• 3:22
  care.
• 3:23
  Or
• 3:23
  be
• 3:23
  on
• 3:23
  any
• 3:23
  other
• 3:24
  random1
• 3:24
  Beyond
• 3:25
  GoPuff,
• 3:25
  who
• 3:25
  cares?
• 3:26
  You
• 3:26
  know,
• 3:26
  like
• 3:26
  at
• 3:26
  the
• 3:26
  end
• 3:26
  of
• 3:27
  the
• 3:27
  day
• 3:27
  you're
• 3:27
  just
• 3:27
  putting
• 3:27
  your
• 3:27
  products
• 3:28
  on
• 3:28
  more
• 3:28
  marketplaces
• 3:29
  for
• 3:29
  you
• 3:29
  to
• 3:29
  sell.
• 3:29
  So
• 3:29
  I
• 3:29
  don't
• 3:30
  see,
• 3:30
  you
• 3:30
  know,
• 3:31
  if
• 3:31
  you're
• 3:31
  on
• 3:31
  one,
• 3:31
  you
• 3:31
  might
• 3:31
  as
• 3:32
  well
• 3:32
  be
• 3:32
  on
• 3:32
  them
• 3:32
  all
• 3:32
  in
• 3:32
  a
• 3:33
  lot
• 3:33
  of
• 3:33
  ways.
• 3:33
  I
• 3:33
  mean,
• 3:33
  I
• 3:33
  don't
• 3:33
  really
• 3:34
  see
• 3:34
  the
• 3:34
  downside.
• 3:35
  And
• 3:35
  I
• 3:35
  get
• 3:35
  why
• 3:35
  they're
• 3:36
  doing
• 3:36
  it
• 3:36
  because
• 3:36
  they're
• 3:37
  still
• 3:37
  feeling
• 3:37
  the
• 3:37
  sting
• 3:38
  of
• 3:38
  the
• 3:38
  Ocado
• 3:38
  announcement.
• 3:39
  And
• 3:39
  for
• 3:39
  that
• 3:39
  reason
• 3:40
  it's
• 3:40
  a
• 3:40
  safe
• 3:40
  move.
• 3:41
  No,
• 3:41
  and
• 3:41
  here's
• 3:42
  the
• 3:42
  other
• 3:42
  thing
• 3:42
  that
• 3:42
  someone
• 3:42
  said
• 3:43
  to
• 3:43
  me
• 3:43
  at
• 3:43
  nrf.
• 3:44
  No
• 3:44
  one
• 3:44
  is
• 3:44
  going
• 3:45
  to
• 3:45
  lose
• 3:45
  their
• 3:45
  job
• 3:46
  over
• 3:46
  expanding
• 3:47
  third
• 3:47
  party
• 3:47
  delivery,
• 3:48
  but
• 3:48
  they
• 3:48
  are
• 3:49
  going
• 3:49
  to
• 3:49
  lose
• 3:49
  their
• 3:49
  job
• 3:50
  for
• 3:50
  deploying
• 3:50
  billions
• 3:51
  of
• 3:51
  dollars
• 3:51
  in
• 3:51
  capital
• 3:52
  and
• 3:52
  failing
• 3:53
  like
• 3:53
  they
• 3:53
  potentially
• 3:54
  did
• 3:54
  with
• 3:54
  Ocado.
• 3:55
  But
• 3:55
  long
• 3:55
  term,
• 3:56
  Walmart.
• 3:57
  Here's
• 3:57
  the
• 3:57
  thing
• 3:57
  though,
• 3:57
  long
• 3:58
  term,
• 3:58
  this
• 3:58
  is
• 3:58
  still
• 3:59
  a
• 3:59
  road
• 3:59
  to
• 3:59
  nowhere
• 3:59
  because
• 4:00
  Walmart
• 4:00
  and
• 4:00
  Amazon
• 4:01
  will
• 4:01
  beat
• 4:02
  them
• 4:02
  and
• 4:02
  are
• 4:02
  already
• 4:03
  beating
• 4:03
  this
• 4:04
  strategy.
• 4:04
  And
• 4:05
  Kroger
• 4:05
  is
• 4:05
  eventually
• 4:06
  going
• 4:06
  to
• 4:06
  get
• 4:06
  squeezed
• 4:07
  if
• 4:07
  it
• 4:07
  doesn't
• 4:07
  evolve.
• 4:08
  And
• 4:08
  I
• 4:09
  plan
• 4:09
  to
• 4:09
  ask
• 4:09
  Richard
• 4:10
  McKenzie
• 4:10
  of
• 4:10
  the
• 4:10
  Lock
• 4:11
  that
• 4:11
  exact
• 4:12
  question
• 4:12
  when
• 4:12
  I
• 4:12
  have
• 4:12
  him
• 4:13
  on
• 4:13
  Confessions
• 4:13
  of
• 4:14
  a
• 4:14
  Supply
• 4:14
  Chain
• 4:14
  podcast
• 4:15
  with
• 4:15
  me
• 4:15
  next
• 4:15
  month
• 4:16
  is
• 4:16
  like,
• 4:16
  you
• 4:16
  know,
• 4:17
  how
• 4:17
  should
• 4:18
  people
• 4:18
  like
• 4:18
  Kroger,
• 4:19
  the
• 4:19
  regional
• 4:19
  grocers
• 4:20
  be
• 4:20
  thinking
• 4:20
  about
• 4:20
  this
• 4:21
  when
• 4:21
  Amazon
• 4:22
  and
• 4:22
  Walmart
• 4:22
  are
• 4:23
  going
• 4:23
  directly
• 4:24
  at
• 4:24
  them
• 4:24
  through
• 4:25
  their
• 4:25
  own
• 4:25
  means,
• 4:25
  so
• 4:26
  that's
• 4:26
  the
• 4:26
  fascinating
• 4:27
  question
• 4:27
  to
• 4:27
  me.
• 4:28
  All
• 4:29
  right,
• 4:29
  well,
• 4:30
  I'm
• 4:30
  excited
• 4:30
  to
• 4:31
  hear
• 4:31
  what
• 4:31
  Valak
• 4:32
  has
• 4:32
  to
• 4:32
  say.
• 4:32
  They
• 4:33
  are
• 4:33
  the
• 4:33
  only
• 4:33
  ones
• 4:34
  doing
• 4:34
  this
• 4:34
  profitably,
• 4:35
  so
• 4:35
  they
• 4:36
  should
• 4:36
  have
• 4:36
  a
• 4:36
  good
• 4:37
  perspective
• 4:37
  on
• 4:38
  the
• 4:38
  best
• 4:38
  route
• 4:39
  to
• 4:39
  online
• 4:40
  grocery
• 4:40
  delivery.