WHY IT MATTERS: Digital Transformation
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Comparing Operations Experience in US Retail by @ParcelLabs is an analysis of thousands of orders to understand reality of #eCommerce #logistics - spoiler free delivery is a myth with 92% of retail...

Comparing Operations Experience in US Retail by @ParcelLabs is an analysis of thousands of orders to understand reality of #eCommerce #logistics - spoiler free delivery is a myth with 92% of retail... | WHY IT MATTERS: Digital Transformation | Scoop.it

In-depth analysis of the post-sales experiences provided by US retailers to establish best practices, common mistakes, and opportunities to outperform competitors.

Farid Mheir's insight:

WHY IT MATTERS: free delivery appears to be a myth based on this analysis from parcelLabs. And in-store pickup is the most popular option. Is this because customers really prefer to pay for delivery or go to the store? - or because the pick-pack-delivery-return costs are too high and as they come down with economies of scale, customers will naturally pick the free delivery option, as they do with Amazon?

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Belle lancée pour Envoi Montréal, le service de livraison urbain et écolo - bike and electric delivery solutions are essential component of #eCommerce

Belle lancée pour Envoi Montréal, le service de livraison urbain et écolo - bike and electric delivery solutions are essential component of #eCommerce | WHY IT MATTERS: Digital Transformation | Scoop.it

Depuis son lancement en novembre 2020, Envoi Montréal a permis aux commerces montréalais d’expédier pas moins de 55 000 colis, dont une bonne proportion sans émission de dioxyde de carbone (CO2). La plateforme procure aux commerçants locaux de toute l’île des tarifs réduits ainsi qu’un accès centralisé à une offre d’expédition complète. Près de 350 commerces ont déjà adopté ce service, économique et soucieux de l’environnement.

Farid Mheir's insight:

WHY IT MATTERS: delivery is expensive and contributes to pollution. Last mile delivery alternatives are essential to make eCommerce efficient and eco-friendly. This project in Montreal is a great way to start in that direction.

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PayPal raises fees to 3.49% + 0.49$ per transaction - just one more example of all the fees that prevent retailers from being competitive or profitable online #ecommerce #achatlocal #panierbleu

PayPal raises fees to 3.49% + 0.49$ per transaction - just one more example of all the fees that prevent retailers from being competitive or profitable online #ecommerce #achatlocal #panierbleu | WHY IT MATTERS: Digital Transformation | Scoop.it

PayPal is upping some of the fees it charges merchants for its payment services and lowering rates for its payment processing service to boost revenues and compete more heavily with payment processors.

Farid Mheir's insight:

WHY IT MATTERS: paypal raises its fees to 3.5% + 50¢ per transaction. Add to that the other costs of being online - shopify store fees, Poste Canada delivery fees, return fees, support, packaging, etc. etc. - and you quickly rack up 15$ or 20$ for a 100$ buy. When online is a side retail channel (what it is for most small retailers), then those fees come on top of physical store rent and employee salaries. No way they can make money. Something's got to change to make eCommerce profitable.

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#eCommerce needs to address pick-pack-deliver issues to continue its growth via @benedictevans #logistics

#eCommerce needs to address pick-pack-deliver issues to continue its growth via @benedictevans #logistics | WHY IT MATTERS: Digital Transformation | Scoop.it

Should we still be talking about online and offline retail, or about trucks versus boxes versus bikes?

Farid Mheir's insight:

WHY IT MATTERS: eCommerce is starting to specialize, showing the limitations of Amazon a-to-z "the everything store". As raised in this short post, the specialization comes from the pick-pack-delivery side of eCommerce - logistics - as shoes, furniture and pizza can all be sold on the same website - say Amazon or Shopify - but require vastly different logistics to fulfill the order. We will see technologies appears to answer those special needs in the future.

With Le Panier Bleu we recognized that limitations of eCommerce for small retailers often are related to the high cost of delivery by mail (poste canada, UPS or other) and that a marketplace solution must address those concerns. This post just provides insights into one aspect of this.

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Est-ce qu'Amazon sait ce qu'il vend? Does Amazon know what it sells? - en français pcq c'est une question fondamentale pour @lepanierbleu #achatlocal

Est-ce qu'Amazon sait ce qu'il vend? Does Amazon know what it sells? - en français pcq c'est une question fondamentale pour @lepanierbleu #achatlocal | WHY IT MATTERS: Digital Transformation | Scoop.it

Amazon has been able to scale indefinitely because it treats every product as an interchangeable packet, and doesn’t need to know what they are, only what they weigh. But if it doesn’t know what it sells, that’s only half a retailer. And what would happen if it could change that?

Farid Mheir's insight:

WHY IT MATTERS: je mets mon commentaire en français parce qu'il s'adresse spécifiquement aux amis du panier bleu. L'article de Ben Evans soulève une question importante et fait la démonstration que non, Amazon ne sait pas. Et que pour Amazon, pour l'instant, peu importe. Mais pour le panier bleu et sa place de marché, le marchandisage et la curation de contenu sera importante. Essentielle même. Et qu'elle sera peut-être le différentiateur et la clé du succès. Le panier bleu ne gagnera pas en créant une place de marché mais en réglant les enjeux des commerçants (coûts élevé des cartes de crédit, logistique, livraison, retours et publicité) et en offrant aux consommateurs une destination pour trouver des commerces et des produits québécois. 

En gros, il faut régler les problèmes du commerce de détail, et la technologie ne résoudra pas tous les problèmes à court terme...

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Hardware failure is a critical component of #digitalTransformation. Case in point: McDonalds outdoor Drive Thru menu board failures shows how difficult it can be to replace good old paper cardboard...

Hardware failure is a critical component of #digitalTransformation. Case in point: McDonalds outdoor Drive Thru menu board failures shows how difficult it can be to replace good old paper cardboard... | WHY IT MATTERS: Digital Transformation | Scoop.it

McDonald’s Drive-Thrus are a baseline for the entire industry and seeing them install LCDs that basically blow up and fail totally is something everyone wants to understand.

Farid Mheir's insight:

WHY IT MATTERS: found this example of displays that fail at McDonalds drive-thrus. It highlights the fact that digital transformation often means deploying new hardware in places where there not in the past. And that creates a huge number of issues in terms of design, maintenance, operations, etc. Very often not a big deal is planned but very much a big deal if not accounted for in the beginning. So think about cooling, electricity availability, repairs, software version updates, security, content upload, etc.

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China’s showing delivery person’s body temperature on the app: Is this the future? via @nathalierobi Nathalie Robitaille

China’s showing delivery person’s body temperature on the app: Is this the future? via @nathalierobi Nathalie Robitaille | WHY IT MATTERS: Digital Transformation | Scoop.it

Is this what our world is going to be like post the Covid-19 pandemic?

Farid Mheir's insight:

WHY IT MATTERS: this is old news but a new picture that shows what it looks like when you track your delivery in China. The image is from March 2021 even though the article is from 2020. So it seems to remain after a year. Not sure when it will be part of the UBER app... ;-)

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200+ Amazon Seller Tools - Big List of #FBA Software and Apps

200+ Amazon Seller Tools - Big List of #FBA Software and Apps | WHY IT MATTERS: Digital Transformation | Scoop.it

I tested more than 200 apps myself, and here are my comments. On this list you will find Amazon product research tools, ppc software, ranking tools, review software, etc.

Farid Mheir's insight:

WHY IT MATTERS: anyone looking at fulfillment by amazon (FBA) should consider this reference for add-on tools.

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Voyage Commander is a state-of-the-art self-driving robot taxi that has a number of important limitations and sheds light into what is possible and what is not

Voyage Commander is a state-of-the-art self-driving robot taxi that has a number of important limitations and sheds light into what is possible and what is not | WHY IT MATTERS: Digital Transformation | Scoop.it

When Commander detects that something in the road ahead cannot be handled by itself, it gracefully transitions control to Telessist, our novel remote assistance technology. Telessist enables our robotaxi service to scale quicker, safely driving riders through any scenario that the world can throw at us.

Farid Mheir's insight:

WHY IT MATTERS: a very interesting article about a robot taxi system, how it works and its limitations. Fun read to understand what is possible and what is not in self driving tech today. This is important because many of digital transformation use case depend on this for profitability (for example eCommerce delivery cost should reduce drastically when this available).

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Amazon Location is now offering Maps and Location Awareness to AWS Applications

Amazon Location is now offering Maps and Location Awareness to AWS Applications | WHY IT MATTERS: Digital Transformation | Scoop.it

We want to make it easier and more cost-effective for you to add maps, location awareness, and other location-based features to your web and mobile applications. Until now, doing this has been somewhat complex and expensive, and also tied you to the business and programming models of a single provider. Introducing Amazon Location Service Today […]

Farid Mheir's insight:

WHY IT MATTERS: this is big news as Amazon now prepares to offer an alternative to Google maps. Based on its delivery fleet and trucks information, this solution now offers a useful solution for AWS users.

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RETURNS ARE A MAJOR ISSUE for #eCommerce. Case in point: return rates of 50% for @zalando may be typical but still represent a *huge* waste of time, effort, energy, etc. Solutions exist but are not...

RETURNS ARE A MAJOR ISSUE for #eCommerce. Case in point: return rates of 50% for @zalando may be typical but still represent a *huge* waste of time, effort, energy, etc. Solutions exist but are not... | WHY IT MATTERS: Digital Transformation | Scoop.it

From the top 500 report on delivery in Europe

Farid Mheir's insight:

WHY IT MATTERS: 50% return rates stated as "normal" for this retailer: I find it shameful and unsustainable for many reasons (economic and environmental for starters). It is great that only 0.05% end up in the landfill but this is not the case in most organizations: returns are at best discounted and most often trashed. How can small retailers build profitable eCommerce business models when 1in2 or 1in10 orders gets returned? It may work ok for apparel or luxury or other high margins segments, but for most retailers this is not the case. Returns are a problem and they need to be addressed!

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Top 500 report of Europe's #eDelivery retailers via @internetRetail @retailX #delivery #ecommerce #fulfillment #delivery

Top 500 report of Europe's #eDelivery retailers via @internetRetail @retailX #delivery #ecommerce #fulfillment #delivery | WHY IT MATTERS: Digital Transformation | Scoop.it

Our ranking shows that it is not all about having absurdly fast
or absurdly cheap delivery – retailers should not fear a race to
the bottom in terms of profit margins. What we believe they should
prioritise is a wide range of offerings that suit their product ranges
and customer base.

Farid Mheir's insight:

WHY IT MATTERS: this report is Europe centric and provides some useful nuggets of information about what makes the best eCommerce retailers successful. Automation, customer service, data and analytics and many others. Nice reference to keep handy when you want to audit or plan your delivery improvements.

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Insightful study of UK E-Commerce Shipping highlights many areas that confirm pick, pack, delivery and returns need improvement

Insightful study of UK E-Commerce Shipping highlights many areas that confirm pick, pack, delivery and returns need improvement | WHY IT MATTERS: Digital Transformation | Scoop.it

So how do the UK’s largest online shops1 perform during checkout, shipping and returns? The study shows that customer centricity ends after checkout and retailers expect customers to seek information from them, rather than the other way around. As a result of this subpar after-sales support, the UK’s online retailers are throwing away millions of pounds in potential sales every month.

Farid Mheir's insight:

WHY IT MATTERS: this study of 100 post-checkout experiences across UK retailers applies to Quebec, Canada and US as well. Full of useful insights about free delivery, delivery selection, returns, etc.

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The #eCommerce Achille's heal is Shipping & Delivery and this report from @CBinsight provides great overview of the #Micro-Fulfillment #Technology as last mile delivery grabs attention recently #re...

The #eCommerce Achille's heal is Shipping & Delivery and this report from @CBinsight provides great overview of the #Micro-Fulfillment #Technology as last mile delivery grabs attention recently #re... | WHY IT MATTERS: Digital Transformation | Scoop.it

Micro-fulfillment technology could deliver a faster service for customers while boosting profits for retailers. Read more in this report.

Farid Mheir's insight:

WHY IT MATTERS: last mile delivery is the Achille's heal of eCommerce. This report provides a great overview of the micro-fulfillment solutions out there.

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Amazon planning new service for its rural deliveries to keep costs down and finalize its vertical integration? #ecommerce #retail

Amazon planning new service for its rural deliveries to keep costs down and finalize its vertical integration? #ecommerce #retail | WHY IT MATTERS: Digital Transformation | Scoop.it

Amazon generated $1.6 billion in profit and $3.9 billion in revenue for the postal service in fiscal year 2019, with the postal service delivering 1.54 billion Amazon packages — about 30 percent of Amazon’s total volume last year. With more people relying on deliveries during the coronavirus pandemic, that number is expected to grow throughout the end of the year and well into next year.

Farid Mheir's insight:

WHY IT MATTERS: Amazon delivery cost now account for 17.8% of sales, increasing. It ships billions of packages via postal service in US (and Canada and elsewhere) but reports like these seem to indicate it may want to build its own delivery infrastructure. And this would be bad for eCommerce as Amazon would control the whole supply chain and obviously keep the savings for itself. 

Graph is from The information: https://www.theinformation.com/articles/amazons-massive-spike-in-delivery-stations-poses-threat-to-usps

louisenns's curator insight, November 16, 2020 5:22 AM

WHY IT MATTERS: Amazon delivery cost now account for 17.8% of sales, increasing. It ships billions of packages via postal service in US (and Canada and elsewhere) but reports like these seem to indicate it may want to build its own delivery infrastructure. And this would be bad for eCommerce as Amazon would control the whole supply chain and obviously keep the savings for itself. 

Graph is from The information: https://www.theinformation.com/articles/amazons-massive-spike-in-delivery-stations-poses-threat-to-usps

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Grocery ecommerce will drive the future of #robotic #fulfillment because it has the order volume and low margins to mandate #automation in its business case - and @Ocado UK grocery retailer appears...

Grocery ecommerce will drive the future of #robotic #fulfillment because it has the order volume and low margins to mandate #automation in its business case - and @Ocado UK grocery retailer appears... | WHY IT MATTERS: Digital Transformation | Scoop.it

Paul Clarke, Ocado's chief technology officer, has said he envisions the company eventually moving to completely "dark" fulfillment centers—ones that would be fully automated and employ virtually no people.

Farid Mheir's insight:

WHY IT MATTERS: the acquisition of robotics for Ocado fulfillment centers could be seen as one more tech announcement. But buried in this Fortune article is this quote from Ocado CTO that summarizes the ultimate goal of grocery eCommerce: dark warehouses with robots doing all the work. 

This may sound very futuristic but in fact it is the consequence of the grocery eCommerce business model: the only way to make money is to have robots to the work that consumers do when pushing carts in the store.

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Delivery is #eCommerce Achille's heal: slow, expensive, not good for the environment. Yet it is the way to go. #CanadaPost and others must transform from letters to parcel delivery - I say "bring b...

Delivery is #eCommerce Achille's heal: slow, expensive, not good for the environment. Yet it is the way to go. #CanadaPost and others must transform from letters to parcel delivery - I say "bring b... | WHY IT MATTERS: Digital Transformation | Scoop.it

Everybody likes to get a package. In 2020, we'll send more than 100 billion of them--and that number could double by 2030. Who will deliver all those packages, and how? In this edition, The Next Normal explores what's ahead in last-mile parcel delivery.

Farid Mheir's insight:

WHY IT MATTERS: parcel delivery has become the primary volume for postman. Why not have delivery routes - postman or milkmen - to deliver the parcels and not just the mail? Would this not be a more cost effective solution than delivering one by one?

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Amazon sales +44% during covid increases need for delivery hub expansion -warehouses- in suburbs and cities 

Amazon sales +44% during covid increases need for delivery hub expansion -warehouses- in suburbs and cities  | WHY IT MATTERS: Digital Transformation | Scoop.it

The rise in ecommerce caused an unprecedented surge in Amazon's volume, but it came with fulfillment challenges. The coronavirus pandemic bolstered ecommerce growth—sales grew 44.4% annually in Q2—as consumers turned to online shopping instead of brick-and-mortar amid store closures. But the milestone came with challenges in handling the surge, including delivery delays and slowed shipping speeds. Other competitors, like Walmart, were able to more effectively weather the storm because of their massive store network, so replicating competitors' strategies could help Amazon recoup lost market share and extend growth during the busy holiday season.

Farid Mheir's insight:

WHY IT MATTERS: Amazon will use failing and bankrupt stores and shopping malls to build warehouses so close to consumers that 1-2hr delivery becomes possible - the last hurdle in making eCommerce viable in many product categories (grocery, food, meals, and other high volume / low margin categories come to mind first of course).

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Going Undercover As An Amazon Fresh Driver shows how Amazon is trying to crack the last remaining issue with ecommerce: delivery cost and speed via @HNGRY

Going Undercover As An Amazon Fresh Driver shows how Amazon is trying to crack the last remaining issue with ecommerce: delivery cost and speed via @HNGRY | WHY IT MATTERS: Digital Transformation | Scoop.it

62% of US adults have preferred to buy groceries in person since the beginning of the pandemic despite nearly a quarter of them using online delivery and pickup.

Farid Mheir's insight:

WHY IT MATTERS: amazon appears to be testing another method of grocery fulfillment that leverages dark stores that are close to households (with dedicated staff and soon micro-fulfillment automation) and a network of freelance drivers that delivers orders in a very small area in order to solve the last remaining problem of eCommerce: delivery cost and speed.

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38 Ways Drones/UAVs Impact Society: from War To Forecasting Weather... to cracking the final issue with #retail #ecommerce? via @CBinsights

38 Ways Drones/UAVs Impact Society: from War To Forecasting Weather... to cracking the final issue with #retail #ecommerce? via @CBinsights | WHY IT MATTERS: Digital Transformation | Scoop.it

High tech drones or UAVs are tackling everything from disease control to vacuuming up ocean waste to delivering pizza, and more.

Farid Mheir's insight:

WHY IT MATTERS: when Amazon receives FAA clearance for drone delivery, I take notice. After all, delivery is the final frontier for profitable ecommerce. So maybe drone delivery is the solution - especially for Canada and its wide empty territory? Not sure that drones will solve delivery issues but sure it is fun to think that it may provide a low-cost option in certain areas.

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An exhaustive review of #eCommerce #logistics trends, solutions and challenges - "Portrait de la logistique en commerce électronique au Québec" via @CEFRIO HT @lepanierblue @technorousseau

An exhaustive review of #eCommerce #logistics trends, solutions and challenges - "Portrait de la logistique en commerce électronique au Québec" via @CEFRIO HT @lepanierblue @technorousseau | WHY IT MATTERS: Digital Transformation | Scoop.it

Réalisé pour le compte du ministère de l’Économie, de la Science et de l’Innovation (MESI), le CEFRIO a regroupé dans le Portrait de la logistique en commerce électronique les conclusions de deux grandes enquêtes - d’abord auprès d’un échantillon représentatif d’entreprises actives en commerce électronique et oeuvrant dans les secteurs du commerce de détail, du commerce de gros ou en fabrication, puis auprès d’entreprises oeuvrant spécifiquement dans le secteur des services logistiques. Analyses et perspectives d'experts et de chercheurs universitaires complètent cette publication afin de dresser un état des lieux complet pour les PME québécoises.

Farid Mheir's insight:

WHY IT MATTERS: a very complete study on the state of the art in eCommerce logistics in Quebec. Still valid today, can act as a guide to retailers struggling with order fulfillment, shipping, returns, etc.

Go direct to the report here: https://cefrio.qc.ca/media/1906/cefrio_portrait_logistique_commerce_electronique_au_quebec.pdf

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The Next Shipping & Delivery Battleground: Why Amazon, Walmart, & Smaller Retailers Are Betting On Micro-Fulfillment via @CBinsights

The Next Shipping & Delivery Battleground: Why Amazon, Walmart, & Smaller Retailers Are Betting On Micro-Fulfillment via @CBinsights | WHY IT MATTERS: Digital Transformation | Scoop.it

As retailers spar to offer a better online shopping experience, micro-fulfillment technology could deliver a faster service for customers while boosting profits for retailers.

Farid Mheir's insight:

WHY IT MATTERS: ecommerce fulfillment must be efficient to be profitable. With order volume increases in recent months, the benefits of micro-fulfillment solutions have become clearer than ever. With setup costs in the tens of millions, they remain capital intensive endeavours for the long run. When combined with automated delivery, they can make eCommerce a profitable business for many retailers. This report highlight some of the key characteristics of these solutions.

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The (not so) hidden cost of food #delivery shows that the current model is unsustainable - and not just for restaurants via @techcrunch

The (not so) hidden cost of food #delivery shows that the current model is unsustainable - and not just for restaurants via @techcrunch | WHY IT MATTERS: Digital Transformation | Scoop.it

The food delivery ecosystem suffers from a lack of differentiation, compounded by an opaque and confusing web of markups and fees.

Farid Mheir's insight:

WHY IT MATTERS: delivery is the last problem to solve for eCommerce to explode. Not only do delivery fees need to be reduced via automation and "milk runs", but it is impossible for retailers and restaurant to support the rent of mostly empty space (during covid and I assume some time after) in prime locations. The overall business model has to change. Ghost kitchens, dark stores, and other solutions are required.

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Coronavirus: Grocery #eCommerce margins are unsustainable because of #delivery fees - I posit that this is also true for most #retailers. Delivery is the last issue to solve for #eCom via @CNBC @Bain

Coronavirus: Grocery #eCommerce margins are unsustainable because of #delivery fees - I posit that this is also true for most #retailers. Delivery is the last issue to solve for #eCom via @CNBC @Bain | WHY IT MATTERS: Digital Transformation | Scoop.it

The pandemic has laid bare the broken business model for online grocery shopping and created new urgency for grocers to fix it, a Bain report said.

Farid Mheir's insight:

WHY IT MATTERS: grocery is tough with small margins and this chart from Bain says it all: delivery and the fees are the last problem to solve with eCommerce. And I would say this is true for all other retail industries, not just grocery. It is that grocery is more sensitive with their high volume and low margins.

And here the original article from Bain&co : https://www.bain.com/insights/how-to-ramp-up-online-grocery-without-breaking-the-bank/#

Tunchii's curator insight, July 20, 2020 10:27 AM
Clintonn's curator insight, July 20, 2020 10:47 AM
Clintonn's curator insight, July 20, 2020 10:48 AM
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An analyst note highlights the impact of covid-19 on the Grocery Industry - pushing it over the hump and shaving 2 years in adoption cycle via @PitchBook

An analyst note highlights the impact of covid-19 on the Grocery Industry - pushing it over the hump and shaving 2 years in adoption cycle via @PitchBook | WHY IT MATTERS: Digital Transformation | Scoop.it

In the wake of the COVID-19 pandemic, several technologies have emerged that are helping reshape the grocery landscape and fuel the shift toward delivery.

Farid Mheir's insight:

WHY IT MATTERS: online grocery adoption has been very slow (I know, I did the first IGA online in 1996!) but now it seems covid may have pushed it over the hump. And if not, at least it appears that it has shaved about one or two years in its adoption cycle. This report provides useful insights as well a great review of startups in the field.

bamenda450@gmail.com's curator insight, June 29, 2020 12:27 PM
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