While grocery-delivery services have faltered under pressure of expenses and the need for speed, a new membership model could lead to greater success for a variety of such services, according to research by BI Intelligence.
As with the retail membership model in general, these delivery startups by definition enjoy repeat customers and can lower their per-delivery shipping fees.
The report looks at Amazon, Instacart, Shipt, and Thrive Market, and the varying ways they employ membership models.
Outside of densely urban areas, grocery delivery has been a challenge — fees have had to be high in order to cover the costs of getting fresh food quickly to its destination. The membership model appears to be one answer to that.
But it’s not just delivery, really. Membership is increasingly a way for retailers to cement loyalty and pad their low prices. And it’s very interesting to note that Costco’s model is often cited, by this BI Intelligence report and the likes of soon-to-launch Jet, as the standard for a membership-based approach to retail.