Definitely agree with Dan that site selection has been crucial to DD’s success. DD does not have a strong international presence yet, but they offer a cleaner in-store experience abroad. This makes sense, because most international customers are still not on the QSR boat, and they view DD more as a direct competitor to Starbucks. As DD explores new markets, how should it balance product proliferation with the need to develop local brand loyalty? Should it only go to places where coffee is the drink-of-choice, or should it offer whatever morning beverage people prefer? KFC as a branded franchise has done REALLY well in Asia, primarily by adapting its menu to local tastes. I am unsure whether DD has grand plans for international growth, but if they do, they should learn from KFC’s success in China.
First line typo – “focus on speed can also create…”
As the business scales, focus can also create conflict between host stores and Instacart employees. Imagine a casual grocery shopper meandering down the aisle, but you now have this army of personal shoppers running around with a sense of urgency. At what point do Target stores start noticing a deterioration of their customer experience? The remote distribution warehouses may be too far for Instacart, because it needs to guarantee a fast service. But one option could be to let Instacart personal shoppers work out of a store’s on site inventory store room. But this may require reconfiguration and retooling of the space, and Instacart may be asked to share costs. I love the idea, but remain skeptical about Instacart’s ability to continue avoiding investments in the physical assets it utilizes for its services.