HomeRun Delivery - The journey of an online grocery fulfilment service
Posted on Sun 20 Oct 2019, 21:23
For the modern, hard-working professionals, time is of the essence and everyday tasks can often be an after-thought. For example, physically going to the supermarket and buying your necessary groceries for the week can often be too time- consuming for those who are always on the go.
This is where HomeRun Delivery came in. HomeRun was a real-time online grocery fulfillment service helping retailers reach more customers faster and cheaper.
Customers could login to Home Run’s website or mobile app, fill up their basket from their favorite supermarket and have their order delivered to their door in as little as 60 minutes. Current online grocery delivery websites belong to the big chain supermarkets are often convoluted, time consuming to navigate and inconvenient.
Customers could shop their weekly groceries from the supermarkets they love and get them delivered in as little as one hour via HomeRun's online platform. Everything from the online customer journey to the tech and physical operations (picking, packing and delivery) were designed, built and run by HomeRun. Unlike other grocery models they had no ownership of liability of any warehouses, stock or delivery vans. The business partnered with supermarkets, and used their physical stores and turned them into real-time fulfilment centres. Part-time and self-employed workers handling the picking and delivery using HomeRun software but their own equipment and vehicles. All this contributed to building a capital light model, having a great product variety and delivering orders in a timely manner.
As a result, HomeRun had raised £1.7 million in funding over 3 rounds, with VentureFriends and JamJar Investments being key seed investors. However, the business recently collapsed as they failed to create new business models which drove further value for both the customer and key partners.
Given that they already had an integrated online platform, they could of entered the product substitution market.
For example, if you added 4 cans of Coca-Cola to your cart, the website or app would provide a pop-up notification to saying “hey, you could have 4 cans of Pepsi at a cheaper price - would you like this option instead?”.
This industry is worth over £10 billion, which is much higher than the original market HomeRun operated in. They could then offer discounted or even free delivery in order to provide even more value, and supplement that cost through the key partnerships they could have built with food and drink brands.
The founding team announced that the venture had come to it's end https://medium.com/@takismalavetas/missing-the-home-run-bacabba34a0e . Though Home Run had long graduated from WMG, the Accelerator team has learned key lessons from this case. We became aware of the pivot opportunities at too late of a stage in order to put a constructive programme in place. A such, our acceleration programme has been designed and tested to respond rapidly to pivotal changes through incrementally testing hypotheses, measuring the effectiveness of those iterations and subsequently applying the learnings accrued in a lean manner. While we say farewell to HomeRun, our current cohort will benefit from the lessons learnt from HomeRun in order to get ahead of market competition, and bring unique value to the markets they serve.