The majority of US regions can get grocery delivery service, but in Canada the number of cities that are able to get service is much smaller. The reason lies in the online grocery store, which is not easy to master. Today the online grocery store industry faces many problems. Despite the fact that Americans hate going to the supermarket, not many of them are willing to pay extra $15 for a fast food delivery.
Among the fast food online companies is Net Grocer, which was founded in 1995 and began delivery two years later. The company used Federal Express for grocery delivery. In few years Net Grocer has become the largest company, which offered delivery of groceries nationwide. The delivery was guaranteed within a week. The company has lost its position however. In the last six months the delivery prices were raised twice. Today Net Grocer plans to open more warehouses in order to deliver items to the remote parts of the country faster. The representatives of the company claim their customers don't mind paying the fee of 10 percent of the total price. They prefer to have the items delivered rather than to waste time on shopping.
Another delivery company is Information Neighborhood, established in 1996. It gained 3,000 customers, providing phone-and-fax ordering service. The company fell into disfavor because there were many people who were not computer users.
The customers of another well-known fast food online company Streamline pay a $30 monthly fee and spend as much as $100 a week.
One of the most successful online grocers is Peapod, which had $70 million revenue as of 1998. The company provides service in 8 metropolitan markets of the United States. It was founded in 1990 and had quite different approach from that of other fast food delivery enterprises. Initially Peapod focused on the local markets. Then it changed its strategy, building a central warehouse in each market.
As it has been mentioned, Canada has fewer online grocery stores. Peachtree Network can be considered the major fast food online company, which provides grocery shopping in Vancouver and Ottawa.
According to online research, the most popular fast food restaurants are: McDonald's (23,9%), Starbucks (15,6%), Pizza Hut (11,1%), Burger King (7,2%), Taco Bell (6,4%), Domino's Pizza (5,6%). They are searched in the Internet most often. Among the most frequently searched fast food online items are Burgers (35,0%), Pizza (18,2%), Coffee (15,6%), Mexican food (9,8%), Chicken (9,1%), Doughnuts (5,3%), Dairy Desserts (4,5%).
One of the prominent places in food delivery online industry belongs to the restaurant Food.com, founded in December 1996 in San Francisco. Over 650,000 people use its services in 12,000 restaurants of the United States.
Statistics show that college students are the largest users of food delivery services. 52% of them order take-out meals at least once a week. Due to Food.com's services college students now have possibility to choose food from the list of local restaurants and have it delivered whenever it is suitable for them.
In order to provide people with the information on all delivery places, Food Delivery Guide.com was started. With its help it's now possible to enjoy a greater variety of online products.