Opportunities Await Innovative Solutions Providers for Online Grocery Deliveries, Avers Augusto Beato

Companies that offer solutions for delivery and pick-up options for grocery orders could benefit immensely from the surging segment, says Portland SEO's Augusto Beato.

He was reacting to a forecast by Brick Meets Click, an advisory group for grocers, that retailers who could address online home delivery issues for groceries could see their businesses grow by 25 to 30 percent in 2019.

Most online grocers still require consumers to pick up their groceries at their stores. Then there's the problem of keeping home-delivered foods fresh and frozen in the event the homeowner isn’t home to accept it. Incidents of porch piracy have risen, affecting 25 million people whose online packages were stolen after being delivered to their homes.

And for those who work during the day, home delivery is not a viable option.

"The advent of new technologies presents opportunities for enterprising entrepreneurs to capitalize on new trends in online shopping deliveries," notes Beato, who is the CEO of Portland SEO.

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Beato pointed out that Walmart announced that it is expanding its tests of driverless cars as a way to get online grocery orders to shoppers' homes more quickly. The big-box retailer is now piloting a program to use Udelv autonomous-driving vans to deliver fresh groceries in Surprise, Arizona.

The company plans to end this fiscal year with an online grocery delivery option in roughly 100 metropolitan areas, reaching more than 40 percent of U.S. households. For 2019, it plans to add that to another 800 stores.

There are also new products in development, such as decorative lockbox that protects packages and deliveries and scan-based technology at the front door, thus eliminating the need for delivery drivers to enter the home.

Forward-thinking prepared food retailers and restaurants are also incorporating technology to retain and grow their customer base.

2019 trends include home delivery of prepared meals or meal kits, online ordering via the website and the capability to text orders to restaurants.

McDonald’s has partnered with Uber Eats, an offshoot of rideshare company Uber, which allows users to order and have delivered food from select restaurants via their website or a smartphone or tablet.

By the end of the year, roughly 90 percent of U.S. households are forecast by Brick Meets Click to have access to at least one delivery or pick-up service for groceries. Other businesses experimenting in the space include Kroger; Whole Foods, via Amazon; and Albertsons.

According to Brick Meets Click, online spending by U.S. consumers for groceries is expected to climb 15 percent this year, pushing the share of grocery sales that take place on the internet to 6.3 percent of overall sales.