Similar to Instacart, the platform connect customers with personal shoppers in their area to shop and deliver groceries from their favorite stores. Customers through Cornershop’s platform can shop from anywhere in major cities in Chile and Mexico using their computers, iPhones, iPad or Android devices. In adittion, customers can get grocery deliveries from supermarkets, pharmacies and specialty food retailers in less than two hours. Moreover, the platform have a clean interface, is easy to navigate, search pretty seamless, among others, helping customers to shop in Cornershop vs. competitors.
Key Platform Elements
Company partners with big retailers, including Walmart, creating an amazing ecosystem: One shop platform
Cornershop’s customer can buy from big supermarket players, pharmacies, specialized food retailers, among others, in Chile and Mexico increasing the assortments of items in their purchases (one stop-shop). Moreover, Cornershop has established alliance with various supermarkets, including Tottus and Lider-Walmart in Chile, through which the store pays a commission to include its products on the app, reducing the delivery fee for the home delivery service (1). In adittion, the company founded in 2015, was recently acquired by Walmart for $225 million, expecting to increase its ecosystem in the platform. Moreover, according to Judit McKenna,CEO of Walmart International, “We are focused on making life easier for customers and associates by building strong local businesses, powered by Walmart,”(2). On the other hand, Cornershop is eyeing Canada and U.S (after Walmart’s acquisiton) and already has partner with others retailers including Costco Wholesale Corp, Mexican chains Chedraui and La Comer (3).
Cornershop’s platform easy to use
Similar to Instacart, Cornershop site and app are intuitive — you fill your shopping cart, pick the hour you want delivery to occur in, and then the groceries are handed to you at your doorstep. But achieving this simplicity cost effectively at scale requires an enormous investment in engineering and data science (4). However, Cornershop has been able to build the techonology in the platform that makes easy to navigate, search some item, etc. Moreover, An English-language version of the app will roll out within a month as part of preparation for the Canada launch, Undurraga said. (5)
Value Creation of Cornershop
As we mentioned:
- One Shop Platform
- Partners with largest grocery in Chile and Mexico
- Less than two-hours delivery
- Easy to navigate
- Food Selection from Shoppers is better than competitors
- Permanent contact between customers-shoppers for any issue
- Better delivery of the purchase
Value Capture Strategy
Cornershop has established alliance with various supermarkets through which the store pays a commission to include its products on the app (This allows them to charge less for the home delivery service to the customers). With the stores that have not signed up for the business exchange, including Jumbo in Chile, Cornershop establishes an increased price for the items (price mark-ups), plus an extra charge for the delivery service to the customers. However, Undurraga, Co-founder of Cornershop, admits that in the long-term “We aspire to charge the same prices as the stores do in all cases, and to partner with all of them,”(6). In adittion, Cornershop generates other revenue through advertising.
(1) Walker Rowe, “Cornershop aims for slice of grocery shopping in Chile and Mexico,” IDG Connect, June 01, 2016 https://www.idgconnect.com/idgconnect/interviews/1001219/cornershop-aims-slice-grocery-shopping-chile-mexico
(2) Sarah Perez, “Walmart to acquire Mexico & Chile-focused grocery delivery service Cornershop for $225 million,” TechCrunch, October, 2018 https://techcrunch.com/2018/09/13/walmart-to-acquire-mexico-chile-focused-grocery-delivery-service-cornershop-for-225m/
(3) (5) Daina Beth Solomon, “Update 1-Walmart’s Latam delivery app Cornershop eyeing Canada and U.S,” CNBC, November 14, 2018, https://www.cnbc.com/2018/11/14/reuters-america-update-1-walmarts-latam-delivery-app-cornershop-eyeing-canada-and-u-s.html
(4) Jeremy Stanley, “Data Science at Instacart,” Medium, February 17, 2016, https://tech.instacart.com/data-science-at-instacart-dabbd2d3f279
(6) Ximena Cassab, “Cornershop: The Revolution of ‘On-Demand’ Groceries,” Portada, May 02, 2016 https://www.portada-online.com/2016/05/02/cornershop-the-revolution-of-on-demand-groceries/