Merchant Innovation

Peapod Takes On Amazon Fresh With NYC Expansion

While traditional retailers compete to earn share-of-wallet, on the online grocery delivery front, it’s about securing share-of-fridge. At least that’s what Peapod.com is after as it competes with Instacart and Amazon Fresh.

Now, the competition in the United States’ largest cities is about to get bigger as Peapod announced it’s moving delivery options into all five of New York City’s boroughs.

To help promote the expansion, Peapod has gotten a little creative in how it’s chosen to promote why its online grocery delivery is solving a problem that many city dwellers face when they try to go grocery shopping. Whether it be the small markets that are constantly sold out of goods, or the heavy bags the shoppers attempt to lug home, New Yorkers probably know the pain of grocery shopping more than consumers in any other city.

The Fill Your Fridge campaign highlights some key statistics gathered by Peapod on the “state of the fridge” for most New Yorkers, which demonstrates how Peapod’s expansion across the city may fill in the grocery gaps. Peapod’s recent survey found that most (80 percent) of New Yorkers fill their fridge with condiments, but not always the food to go with it. When it comes to meat/seafood, 59 percent reported having those regularly in their fridge, 75 percent had frozen items, 75 percent had produce and just 36 percent had deli items. But in that same survey, 40 percent admitted to having expired foods in their fridge.

In that same survey, 41 percent say they rely on take-out/delivery for their dining options, likely because New Yorkers said their grocery trip can end with them lugging home 19 pounds of goods. Most (64 percent) shop frequently to avoid that problem, but then those shoppers say a quarter of their shopping time is spent waiting in checkout lines. The survey indicates that 81 percent of NYC residents report “food shopping woes,” which includes 48 percent who face long lines, 45 percent who face crowded aisles, 38 percent who face “sticker shock” at prices and 32 percent who say the produce isn’t up to par.

“From the long lines and crowded aisles in the store, to the schlepp to get it home, New Yorkers have a particularly hard time accomplishing their grocery shopping needs,” Peg Merzbacher, Vice President of Regional Marketing for Peapod, said in a company news release. “With Peapod grocery delivery, New Yorkers can skip the lines and headaches and have pantry essentials, fresh produce, meats, seafood and more all delivered with the click of a button, or swipe of a finger with our convenient Peapod app.”

Based on similar surveys in other major cities, Peapod’s report shows NYC residents could last an average of 6.6 days on what’s in their fridge, but that’s a day or two less than most cities. New Yorkers also have gone the longest (on average) of not fully restocking the fridge: 26.9 days, according to the survey.

That’s the gap Peapod hopes to fill now with its grocery delivery being offered across the city. But can it win the online grocery delivery battle against Amazon Fresh?

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