Business Report: Home delivery by supermarkets - Hawaii News Now - KGMB and KHNL

Business Report: Home delivery by supermarkets

(Image: Hawaii News Now) (Image: Hawaii News Now)
HONOLULU (HawaiiNewsNow) -

As you know, Safeway is doing home delivery in a bunch of neighborhoods on south shore and windward Oahu. Through the end of October it's free, but then what?

Since delivery requires delivery vehicles and delivery persons, they'll want to cover their delivery costs, and maybe profit from it. But they can't charge TOO much. People will view the delivery charge in the context of other delivery charges, like pizza, and if it's too much more, it may bug people to the point where they don't try it. On the mainland, Safeway typically charges a delivery fee of 13 bucks, less for big orders. If they keep it reasonable, it may be used, not just by people buying groceries, but by people buying supermarket prepared meals. If Safeway hits the sweet spot, it could compete, not just with Foodland, but with Domino's as well.

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