a16z Podcast a16zPodcast: People Marketplaces Take On One of the Last Great E-Commerce Opportunities -- Groceries
Jun 16, 2014
Jeff Jordan, General Partner at a16z, dives into the world of People Marketplaces. He discusses how these platforms, like Instacart, are redefining grocery delivery by using existing stores as fulfillment centers. The conversation highlights the digital revolution's impact on grocery services and the rise of flexible work opportunities. Jordan also addresses the previous failures in grocery delivery and explains why this time feels different, making a compelling case for the future of online grocery shopping.
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Smartphones Enable People Marketplaces
- People marketplaces connect buyers to independent contractors to provide services using smartphones as the enabler.
- The smartphone's GPS and compute make distributed labor scheduling and logistics tractable at scale.
Real-World Marketplaces In Action
- Jeff uses Lyft, Homejoy, and restaurant delivery as concrete examples of people marketplaces in action.
- He describes tracking drivers via GPS and using algorithms to optimize assignments and next orders for efficiency.
Virtual Model Vs. Parallel Supply Chains
- Grocery remained largely analog because past attempts built expensive parallel supply chains like Webvan.
- Instacart uses a virtual model that leverages existing stores, shoppers' phones, and gig labor to avoid heavy capex.