Blog 7: Diffusion of Innovations

 

Online grocery delivery services, which became increasingly popular during the pandemic, was an innovation that actually began in the 1990’s. HomeGrocer.com was one of the first online supermarket players. It started in 1997 in Washington state and quickly obtained investment to allow it to create the infrastructure needed to support the business, including a huge warehouse and a fleet of vans. Since then, services like Instacart, Peapod, Shipt, Whole Foods/Amazon Prime, Fresh Direct, and independent stores have successfully entered the realm of grocery delivery.  

My grandparents have told me that when they were children in the 1940’s and 1950’s, milk and dairy products were delivered by the local “milkman,” groceries could be delivered from the neighborhood market, fruits and vegetables were picked from a truck driven down the street by a nearby farmer, and they even could summon alcoholic beverages by phone. This was at a time when most women did not work or drive or did not have access to a car during the day and were expected to have dinner on the table when their husbands came home from work.

Today, as the schedules of two-parent and single-parent middle class families became busier, grocery delivery services became a reliable and convenient timesaver. In addition, individuals who are handicapped or homebound do not have to rely on the assistance of family members or friends to bring them groceries. The upside is that consumers can shop online at their favorite stores and have them delivered by services such as Instacart, Shipt, or Peapod, whom the grocery stores contract to shop and deliver their goods. Delivery from Whole Foods, which is owned by Amazon, is available to Prime members. Fresh Direct has its own warehouse, from which consumers can shop and have items delivered. Even though there are negatives, such as not being able to contact your shopper, poor substitutions for out-of-stock items, and late delivery, people continue to utilize these services because it makes their lives easier. 

These services, out of consumer necessity and the need to quarantine, caught on and grew significantly from the onset of the pandemic. Grocery delivery companies such as Instacart experienced heightened demand during the pandemic. Our data shows that between the first and second quarters of 2020, Instacart's sales grew 157 percent and have remained elevated. Despite this, there are still many people who prefer not to order groceries online due to security concerns, cleanliness, preference when selecting groceries, fees, and higher cost of items. In the end, however, if you weigh the cost of time, savings on gas, elimination of stress, and the ability to have more quality time with family and friends, the positives far outweigh the negatives.

For me, as a college student with a busy academic and social schedule, I, as well as many of my friends, frequently use Instacart to purchase food and toiletry items. Although some of the demand for these services has slowed, many people who did not use them prior to the pandemic, have realized their value and continue to rely on these services.