Tag Archives: whole foods

Apple Pay is great but I will still need to carry my wallet

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I have to admit that I was GLUED to my computer screen this morning during the Apple announcement. It still blows my mind that technology and bandwidth can’t deliver a smooth online feed to a live event. What was up with the live translation feeds being clearly audible to online viewers? ANNOYING! Fortunately the live stream technical team saw the multiple tweets and fixed the problem.   Unfortunately my viewing experience was very choppy and I got word of the announcement in real time more from Twitter.

As predicted, Apple entered BIG into payments with Apple Pay and into wearables too with Apple Watch too.  Apple’s recent announcements around partnerships with Visa, Amex, MasterCard etc were clear leading indicators of the entry into payments. I am very excited about Apple’s payment system and how it will help drive mass consumer adoption of a true mobile wallet. Yean! However, we are a ways away from Apple driving mass adoption of their wallet.

Screen Shot 2014-09-09 at 4.14.30 PMApple Pay will be available on the iPhone 6 and Apple Watch devices for it requires technology included only in this hardware. Yes, the iPhone 6 and Apple Watch will set sales records and proliferation will be fast across the globe. However, Apple Pay will not be available on legacy devices that will slow down the adoption rate. Additionally, Apple Pay will be limited to major retailers including Whole Foods, Macy’s and Toys R Us. Yes, over 200,000 stores will be accepting contactless payments through Apple Pay. I’m sure Apple is busy negotiating partnerships with several other major retailers as well and the footprint will grow even more.

Apple Pay will not be available to stores outside of this Apple negotiated big box retailer network. Consumers will not be able to truly leave their wallet at home. Apple’s partnership with IBM, though, will help Apple Pay expand its footprint to more business….but it will take time. As I mentioned in a previous post, the IBM partnership provides Apple access to many banks and financial institutions. These FIs have business banking customers and frequently provide merchants with POS payment systems. Now that the iPhone 6 includes the NFC chip, Apple will be hot to engage IBM on pushing the distribution of NFC enabled payment terminals to their banking customers. Only until NFC enabled payment terminals are more widely distributed will Apple gain ownership of the mobile wallet.

Clearly Apple has the hardware, technology and strategic partnerships to create the closed loop necessary to build a ubiquitous payment system. It’s a matter of time before this happens. However, NFC technology and devices are not Apple technology and can be easily licensed by competitors. Yes, Apple has leap fogged into the lead on building a mobile wallet, but the competition did see this coming. Apple must continue adding nationwide retailers to their network to enable consumers to use Apple Pay. The first mover advantage will be key and the network affects will take hold. If a competitor is to provide another offering for consumers and merchants, they better act FAST. Samsung and Loopt I’m sure are having lunch right now.

On a side note, I am amazed by the level of talent Apple employs for their advertising and marketing efforts; JT, Jimmie Fallon and U2. A list talent meets A + list company. I’m sure Apple pays a large portion of the marketing budget for these names. Or maybe it’s vice versa! Let this be a reminder of the high margins Apple receives on every product they sell. Impressive.

 

 

 

 

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Grokker content could be key driver of Blue Apron subscriber growth

Like many of us, my wife and I struggle in keeping a good work/family life balance. We are parents of two young boys and our goal is to provide them with the best opportunities to grow and develop physically, intellectually and spiritually. We’ve learned that parenting is a lot of fun, a more than full time job AND is very rewarding. One of our biggest struggles is getting healthy, flavorful and “kid friendly” food on the table. We make frequent runs to Safeway, Trader Joe’s and to Whole Foods to buy as much fresh food as possible…and end up buying a lot of pre-made food too. Let’s face it, after a LONG day at work, it’s a lot easier to throw in the microwave a Trade Joe’s meat loaf than to whip one up from scratch.

The inspiration to prepare a complete meal does find us a few times a week, however. So we are not a complete “ready made meal” family…at least we’ve got that going for us.  We’ve found that the big challenges in home cooking are…

1. Finding inspiration for great meals

2. Finding recipes that are easy and quick to prepare

3. Shopping for the ingredients

4. Taking the time to prepare the meal (the fun part)

5. Cleaning up (the not fun part)

UGH….any of these challenges is enough to push a family to do ready made food or to buy take-out.

Screen Shot 2014-06-02 at 11.54.28 AMWe have been finding home cooked meal inspiration from a great site called Grokker. Signing up for Grokker is free and they do a great job in how their content is organized. The site provides how-to videos on preparing some great meals taught by professional chefs. When I say “professional” I mean chefs from the higher end restaurants or expert food bloggers…so they know a trick or two. One of our favorites is Whitney Bond who just KILLS it on creative ways to prepare the standard meals. My wife LOVED her sweet potato skin recipe. Or Doc Ward’s smoked ribs are AMAZING.

Grokker clearly addresses the challenges of finding inspiration and finding recipes that are easy to prepare. They also provide the recipe in text form that can be emailed or printed out to then find its way on a shopping list. It would be GREAT if Grokker could make it easy for me to export the list of ingredients into a shopping list on my iPhone. Hint, hint.

Grokker, however, does not help consumers take the pain out of 3 of the biggest challenges of home cooking; shopping, preparation time and clean up. I think if Grokker helped consumers do the shopping they will address A HUGE pain point and the site will attract more consumers eager to be inspired and enabled to cook great food. Hmmm…but how is this done? Grocery delivery is a tough business. Remember WebVan?

Grokker may address the shopping challenge by establishing a strategic partnership with Blue Apron. The combined assets will deliver a powerful consumer experience for both companies and their consumer base. Blue Apron just announced a $50M C-round of funding and is boasting the delivery of 500K meals a month. Wow. Blue Apron positions itself as a better way to cook with fresh ingredients, great recipes delivered to the consumer’s home. For a monthly fee starting at $9.95, Blue Apron provides recipes, ingredients and a home delivery service. The consumers can do the fun part, taking the time to prepare the meal.Screen Shot 2014-06-02 at 12.02.55 PM

I think Blue Apron is missing a key element…the inspiration around food and the community engagement with other foodies.   By partnering with Grokker, Blue Apron receives well-produced content that may help it differentiate itself from competitors such as Plated or PeachDish. Given Blue Apron’s momentum, we all know competitors will be HOT on their apron strings. Amazon is working out the kinks of Amazon Fresh and as we know, they are good at getting e-commerce right.

Clearly, Grokker will gain a great deal from a Blue Apron strategic partnership. They will benefit through the monetization of its well produced cooking content through licensing agreements. Grokker could provide a VALUABLE service to Blue Apron that will generate a handsome revenue stream to fuel expert content development across more categories. Grokker will also provide a key service to their consumer audience – shopping and delivery of recipe ingredients. As a Grokker user, I see this as a great service!

Some may ask why Blue Apron would not just create the content themselves given their large capitalization. Clearly they have the money.   Aah…creating the right, well-produced content is easier said than done, young Jedi. This is Grokker’s core competency. Another obvious question is why Blue Apron does not just buy Grokker…after all Grokker’s valuation at the moment is far less than Blue Apron’s at $500M. From what I can see the Grokker team is focused on building an expert video network including content beyond food, including yoga and health/fitness. In short, Grokker may not be open to Blue Apron’s marriage proposal…which is smart. Grokker will become a real hot number and potential suitors will be coming out of the woodwork.

The big key in making a Blue Apron/Grokker partnership work is ease of integration. The Blue Apron leadership team is under A LOT of pressure to grow subscribers and revenue. Grokker content can help grow subscribers by providing a lot of great content, recipes and chef personalities. If this content can be easily integrated on Blue Apron with minimal front-end engineering support, it’s not a stretch to envision this partnership.

I’m hungry.


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