Amazon Just Announced Two-Hour Grocery Delivery From Whole Foods and other retailers are joining the craze – is grocery delivery the Holy Grail of the last mile that makes online eCommerce fast and…

Traditional retailers like Albertsons, Walmart, and Target are clambering to acquire delivery-focused tech startups to arm themselves against Amazon as it moves into the grocery space.

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WHY IT MATTERS: distribution is the final frontier, the last nut to crack in eCommerce today – as most other aspects, from technology to processes to business models, have already been solved. Distribution remains costly and often an area that retailers – pure plays as well as brick and mortar – struggle with.

As discussed in the past, grocery food delivery appears to be the holy grail of delivery: 1) put trucks on the road with fixed schedules to deliver groceries as the milkmen did in the past 2) manage to break even on these deliveries as this pays for fixed costs – all other deliveries have only a marginal cost and thus become essentially “free”

Farid Mheir