Who wants to order some groceries, in certain selected ZIP codes?
Kroger, the nation’s largest grocer, has launched a self-driving grocery delivery service in Houston, the latest salvo in a hyper-competitive grocery market that has supermarket chains investing heavily in new technology to win over online shoppers.
Company officials on Tuesday showcased the first of dozens of autonomous delivery vehicles planned for Houston: Toyota Priuses outfitted with cameras, sensors and self-driving computer software. Shoppers at Kroger’s Meyerland store who live in ZIP codes 77401 and 77096 can order groceries through the company’s website and have their purchases pull up in a self-driven Prius. The Cincinnati-based grocer plans to bring the autonomous delivery service to its Buffalo Speedway store later this year, with plans to ultimately expand the program citywide.
“We are creating a seamless shopping experience for our customers so they can get anything, anytime and anywhere,” said Marlene Stewart, Kroger’s Houston division president.
In January 2018, Kroger partnered with Nuro, a Mountain View, Calif.-based self-driving delivery startup, to develop a grocery delivery service. Nuro, founded in 2016 by a pair of Google veterans, has raised $1 billion from investors, including Silicon Valley venture capital firm Greylock Partners and Japanese holding conglomerate SoftBank, to make autonomous vehicle deliveries affordable for the mass consumer.
“We believe this technology isn’t just for an elite group of people, but for everybody,” said Dan Mitchell, Nuro’s head of product operations and community engagement.
The Kroger-Nuro partnership launched a pilot program in Scottsdale, Ariz., in August. Over the next seven months, the companies made more than 2,000 deliveries to customers living in one ZIP code around a Fry’s Market, a Kroger subsidiary. Mitchell said the autonomous vehicles were well-received in Arizona, with shoppers reveling in novelty of self-driving cars by taking photos and sharing them on social media.
Deliveries cost $5.95, which is less expensive than Kroger’s $11.95 delivery service through Shipt, whose human couriers bring groceries to the door. Customers using the autonomous vehicle delivery service will have to pick up their groceries from the vehicle curbside, notified of their arrival via text message.
Nuro’s autonomous vehicles will have a safety operator at the driver’s seat who can take control in case of emergencies, as well as a co-pilot monitoring the technology. The vehicles had no accidents during its Arizona pilot program, Mitchell said.
Quincy Allen, district engineer for the Texas Department of Transportation, said governmental agencies will closely watch Kroger’s autonomous delivery program as it expands.
“Safety remains our top priority, and we expect Kroger and Nuro to meet our safety standards,” Allen said.
See here for the background. I presume one reason for the difference in price is that the human couriers will carry the groceries to you, while with the autonomous car you have to schlep them yourself. I’d be interested to see if there’s a sufficient market for both options going forward. Those of you in ZIP codes 77005 and 77025 who order from the Kroger at 5150 Buffalo Speedway will get the chance to try this in a few months. Do you get groceries delivered, and if so do you find this appealing? Leave a comment and let us know.