Despite the fact that the entire chain of food supply, from producers to consumers, are the constant subject of studies and improvement attempts, the fact is that it has not evolved a lot in recent years, sitting unchanged in its old ways.
A good example of this is the grocery industry, particularly brick and mortar stores, which have no other option other than to remain on these supply chains and their unnecessary middlemen and tremendous waste. These problems decrease the quality of products, increase the cost and also the waste of food, which is thought to be as high as 40%.
With most people shopping online for all kinds of products, it is predicted that, in the next few years, 70% of consumers will shop for groceries online. However, currently, there is a problem with online grocery shopping, which has all to do with shipping costs, which tend to be way higher than normal for this kind of products.
There’s a startup for that
Now, a new grocery delivery startup is solving all these problems at once: meet Milk & Eggs. This innovative startup is directly linking producers to consumers, cutting all the middlemen and most of the “fat” from the supply chain.
This causes their costs to be about 25% cheaper in comparison to competitors, dropping the delivery cost to a mere $3 – way less than what others do. With such reduced costs, Milk & Eggs is able to reach operational profitability, and also offer free shipping for orders over $35.
How it works
The startup’s supply chain is very simple and straightforward: producers deliver their products directly at Milk & Eggs’ sorting and aggregation warehouse (SAW), where they are organized into individual orders. Then, the orders are directly delivered to the customers’ houses, all this in around 24 hours from the moment in which the order is placed to the moment it is delivered.
But it is not just the supply chain that this startup optimizes, as its commitment is also focused to reduce waste. This is achieved not only with the use of minimal packaging, that is collected and re-used for each delivery, but also by the fact that this model actually helps the environment by reducing the trips to the grocery store that are done by customers.
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The startup covers the majority of the area of Los Angeles County and Orange County and is currently the highest rated grocery delivery service on Yelp.
What do you think? Would you like to see this in more places? Let us know down below in the comments or carry the discussion over to our Twitter or Facebook.
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