Food Movers: Confessions of an Instacart Shopper

Food Movers: Confessions of an Instacart Shopper

He’s standing near the fresh herbs, staring at a forest of tiny green bundles, scratching his head, looking up and down from his phone. I offer some help, and he asks, “Where’s the basil?” After I help him choose a perky bunch, he thanks me and mumbles, “I hate shopping for vegetarians.” He’s wearing a shirt emblazoned with the Instacart logo.

Twenty minutes later I’m back in the produce section, and the man is still staring at herbs, looking defeated. “She wants fresh sage, not dried sage. What is it with these vegetarians?” he grumbles. In his defense, none of the herbs are labeled. I point out the fresh sage and wish him luck.

Those increasingly ubiquitous personal grocery shoppers roaming the aisles at a supermarket near you are paid a per-order bonus in addition to the minimum wage they earn per hour. The more orders they can complete in an hour, the more money they can make. But when they can’t find the right fresh herbs, like the shopper I encountered, their slowed quest results in fewer completed orders that day: in other words, money left on the table.

“If you do enough orders in a day and you’re really fast, you can make a lot of money,” explains a different Instacart shopper nearby.

Personal food shopping services have grown by leaps and bounds in the last few years. In Austin alone, six companies offer a range of personal shopping and delivery services at more than 10 stores. Nielsen’s Food Marketing Institute predicts that by 2025, 70 percent of consumers will be purchasing consumer packaged goods online. According to One Click Retail, Amazon already holds 18 percent of all online grocery sales.

That said, grocery shopping can be deeply personal. Customers have habits, preferences and quirks that retailers must accommodate with their third-party hand-picking-produce abilities.

“Ask anyone at HEB if they’ve had to find tahini and they’ll tell you, yes, it’s the hardest thing to find, and everyone wants it.”

As one shopper explains, “The people at Whole Foods are, well, ‘Whole Foodsie,’ ordering $50 jars of honey” and giving picky instructions about their produce. Because of this fastidiousness, online grocers started out offering only consumer packaged goods — pantry items like rice, beverages and breakfast cereals. But lately, most businesses have developed strategies for also offering fresh produce.

Still, online grocery shopping has room to grow. Less than 10 percent of customers in North America buy their fresh groceries online, according to Nielsen. Companies like Instacart have developed technologies that enable customers and shoppers to communicate as the shopper moves through the store. It’s a handy way to reassure customers that they’re getting exactly what they want. But shoppers may find their flow disrupted by picky comments such as, “Can you make sure to get the salmon that’s fourth from the back with the horizontal grill marks?” Or more frustrating: “I’m allergic to that brand.” Customer demands can get extreme, and shoppers feel the need to be polite even as they try to round up everything on their list.

Each company operates slightly differently for shoppers, who tend to stick to one company and one unique store. One exception is Burpy, which operates like the Uber of grocery delivery. Burpy shoppers may fulfill one order with products from a variety of stores. Shoppers are also paid differently depending on the company, ranging from minimum wage with bonuses per order, to flat hourly rates, to tips only. Shoppers generally work flexible schedules, which makes it an attractive second job or a good fit for students.

Regardless of payment criteria, speed matters. Shoppers create efficient strategies for moving through stores. Texas regional grocer HEB even has a digital platform that sorts a customer’s order according to the store’s unique layout, creating a “perfect workflow.” But despite deep store experience and superior technology, some items are still elusive to shoppers.

“Tahini,” one shopper says. “I’ve worked at five HEBs, and every time it’s a wild goose chase. I think it likes to hide itself. Ask anyone at HEB if they’ve had to find tahini and they’ll tell you, yes, it’s the hardest thing to find, and everyone wants it.”

Even when shoppers find everything on the list, customers must still get the groceries home. Because customers see only an itemized list, they often don’t realize how large their order is — an especially risky scenario when it’s for a pickup service or orders from Costco. Sizable orders of bottled beverages pose serious challenges.

“They pull up, and we’re dragging out three carts of groceries, two of which are full of bottled water, and they pull up in a VW Bug,” complains an HEB Curbside shopper. Amazon Fresh shoppers experience the same problem: “People will order 40 boxes of La Croix seltzer, and it’s crazy! You need eight shopping carts and that’s a lot of work.”

Despite the interconnected relationship between shopper and customer, an interesting disconnect remains. Shoppers frequently work in stores in which they do not personally shop, and often shoppers are asked to select items out of their comfort zone, like fresh herbs or fine wine. It begs the question: Can personal shoppers overcome these barriers to make this platform the future bread and butter of grocery shopping?

Where Are Food+City Startups Headed?

Where Are Food+City Startups Headed?

If the 2018 Food+City Challenge Prize entrants are any indication, we’re well on the way toward improving our food system.

Four years into our competition for food supply chain startups (read about all four years’ of finalists), we’ve noticed some interesting trends, including changes in the way entrepreneurs think about innovation. Progress is apparent despite food regulations, a lack of consistent data standards and the companies’ need to achieve scale while remaining small and agile. For many startups, technology is central — but it’s not necessarily all about apps anymore.

Instead, futuristic tools that bring new rigor to agriculture and warehouse management are on the horizon. UAV-IQ Precision Agriculture, one of three $10,000 Food+City Prize winners, provides precision crop monitoring for farmers using drones and sensors. The new technology enables farmers to use the gathered data to make decisions about resources to maximize their yields and reduce crop losses.

“UAV-IQ is attacking the fundamental lack of precise knowledge of where variability exists within fields,” says co-founder Andreas Neuman, former assistant director of operations for the U.S. Air Force’s Global Hawk Unmanned Aerial System. “This lack of knowledge and suitable toolkits to first identify and then manage variability leads to massive inefficiencies due to one-size-fits-all approaches, which often result in over-usage of water and chemicals.”

Another high-tech agriculture solution is Transaera, which is commercializing a material developed at the Massachusetts Institute of Technology that absorbs moisture within greenhouses. The product gives indoor farmers more control over their growing environments and enables them to reduce plant disease and increase yield while also reducing energy consumption.

“To feed nine billion people by 2050, we need new agricultural systems,” says founder Sorin Grama. “Indoor agriculture could be an answer, but it is an energy-intensive operation that will not scale unless we figure out how to grow foods using less energy and water.”

Entrepreneurs are also using technology to connect links in the food supply chain. For example, Stowga, a London-based business-to-business startup, connects retailers to unused warehouse space. This “Uber for warehouses” helps firms with excess storage use their space more efficiently; and it offers below-market options to businesses that may need space for only a short time.

Team mentor PJ Tanzillo, head of product at Favor Delivery, has high expectations for Stowga, led by CEO Charlie Pool. “Charlie and team are not your typical early-stage startup,” Tanzillo says. “They have a clear line of sight to a sustainable business, and they have achieved product and market fit. I’m confident their success will continue.”

Making connections across chain links continues to be a key draw for startups. Vinder is a digital platform that connects home gardeners who grew more than they can eat with community members who seek freshly grown food. Sam Lillie launched Vinder by going door to door in his hometown of Port Townsend, Washington, asking residents whether they had home gardens and if they ever had extra produce they’d be willing to sell. It wasn’t long before Lillie connected dozens of home gardeners with produce-hungry families, moving more than 300 pounds of fruits and vegetables among them.

“We have been trained over the last 70 years to buy our produce and processed goods from a giant supermarket chain that sources products from all over the world,” says Lillie. “Vinder reduces the food waste that happens in every city across the country while efficiently reducing delivery miles because you are buying from your neighbor and not some farmer in Argentina.” With the Vinder website and app, consumers in dozens of cities in 11 states can connect with nearby growers to buy the produce they seek, reducing food waste and putting money back into their communities, literally at the grassroots level.

If you don’t have a garden but want to grow your own food, Indiana-based Aggressively Organic, one of three Prize winners, can help. It offers micro-gardening systems for people without access to earth-based gardens. Users can grow lettuces, tomatoes and other fresh veggies in just one square foot of space in their homes. Anchored by cardboard “micro-growth chambers,” the hydroponic systems use a mere 16 ounces of water to grow a head of lettuce. In contrast, conventionally grown lettuces require 25 gallons of water per head.

“Instead of cut-and-kill or pull-and-ship — like all other current modalities of agriculture that end up shipping already dead and dying goods that end up being wasted — our stuff stays living, and we harvest when hungry,” says founder Jonathan Partlow.

Vinder and Aggressively Organic aren’t the only companies working on solutions to curb the growing amount of food waste. The 2018 submissions included ideas for moving excess food to consumers and methods for repurposing waste such as spent grains from beer breweries as ways to limit the amount of waste that ends up in the landfill.

The most tenacious and complicated problems that startups try to solve involve aggregating and transporting food from local producers to markets, restaurants and grocery stores. It’s a problem that food hubs have tried to solve for years. Today’s startup teams are working on a range of platforms: from apps that aggregate farm inventories to hauling and logistics businesses that focus on the transport of food from local producers to consumers. One of our contestants, GrubTubs, retrieves food waste from restaurants, turns it into compost for local chicken farms and then provides eggs back to the restaurants.

Another, Houston-based Grit Grocery, brings the grocery store right to your neighborhood, using a food truck model. Consumers no longer have to travel to the fringes of their communities to shop at energy-gobbling big-box grocery stores. Instead, Grit Grocery trucks bring locally grown produce, local honey and meal kits — featuring, for example, shrimp from the Gulf of Mexico — right into communities, shortening the last food mile and cutting the distance from farm to table.

“The shopping experience fundamentally shapes the flow of food, not only by creating limitations on what kind of food can be supplied but also by subtly creating demand for certain foods or even entire categories of food,” says Dustin Windham, who founded and operates Grit Grocery with partners Michael Powell and Jamal Ansari. “Building on that, we want to develop a new kind of localized supply chain that is specifically tailored to retail experiences, which is more curated, community-driven and socially intimate.”

Some of these startups rely on volunteers and are modeled more like nonprofit organizations that rely on grants and donations. Others are attempting to create value for both farmers and consumers by charging either the farmer or the consumer for their logistics services. These startups are responding to increasing consumer demand for local food from small producers. But it’s not clear if this local supply chain can find a way to make money without working with the larger food distributors.

In Kenya, where large food distributors aren’t as common in the food system, Taimba seeks to tame a chaotic and fragmented supply chain by connecting farmers with retailers and vendors through a cashless business-to-business app. Vendors order their produce via the app, then Taimba retrieves it from the farmers and delivers it to the marketplace. Farmers receive a fair price for their goods, and vendors receive inventory at below-market prices.

“The ability to offer a market and good prices to small-scale farmers has really boosted farmers’ earnings by reducing wastage and paying promptly,” says founder Dominique Kavuisya. Taimba went home with one of three $10,000 Prizes.

While consumers everywhere want more local food, the system to deliver the goods is still awkward, unsustainable and encumbered by capital equipment expenses and the lack of technology and tracking on the small-producer side. We are anxious to see how our finalists work on solving these issues.

Through the innovative work of our contestant startups, we are optimistic that we will see more locally produced fresh produce reach consumers, less food waste in the landfill and better and safer products in our food system.

Prize winner Andreas Neuman of UAV-IQ with Food+City’s Robyn Metcalfe.

UAV-IQ’s monitoring technology in use.

Transaera founder Sorin Grama makes his pitch at the 2018 Challenge Prize.

Transaera’s technology absorbs moisture in greenhouses.

Map by Stowga representing available storage space in the United Kingdom.

Vinder founder and CEO Sam Lillie.

F+C’s Robyn Metcalfe with Prize winner Jonathan Partlow of Aggressively Organic.

Aggressively Organic’s hydroponic growing system with leafy greens.

Grit Grocery truck in Houston.

Grit Grocery founder Dustin Windham, right, visits with a supplier in the field.

F+C’s Robyn Metcalfe congratulates Dominique Kavuisya, Taimba founder and Prize winner.

FOOD+CITY Challenge Prize

Innovation in food takes all forms, from making improvements to pallets to creating new avenues for delivering food or designing packaging that increases shelf life. Since 2015, we’ve hosted a challenge prize for startups in the food space that are challenging our notions of how the supply chain works. The 2018 Challenge Prize was awarded on March 13, 2018, at SXSW Interactive. Visit foodandcity.org/prize to learn more about this year’s entrants and winners.

Chain Gang: New Tech Links Trucks on Open Road

Chain Gang: New Tech Links Trucks on Open Road

Pelotons are not just for bikers. Truckers are bringing their rigs in line with packs of other trucks to save on fuel costs and increase road safety.

Companies such as Peloton and Daimler Trucks are entering the market with their connected truck platforms, enabling convoys of trucks to travel together in close proximity while sharing software and connectivity.

A compromise between driverless trucks and human drivers, these new systems still include a human driver that steers each rig. But the entire convoy accelerates or brakes based on the movements of the driver in the lead truck. Tesla is also joining the pack with its autonomous, electric trucks.

Convoy software can perform real-time route optimization from the cab and provide truckers with an alternative to spending hours, days and weeks at the wheel, navigating traffic and avoiding collisions.

GoGo Chickens: Watch Them Grow from Egg to Dinner

GoGo Chickens: Watch Them Grow from Egg to Dinner

If you live in a city but still want to look deep into the eyes of your dinner, you’re in luck. Thanks to blockchain technology being developed by Chinese insurance tech company ZhongAn Online, people will soon be able to use facial-recognition technology to track organically farmed chickens they’ve pre-purchased. They will also be able to monitor their bird’s movement in real-time through GPS tracking bracelets attached to birds’ legs. Welcome to the brave new world of farm-to-table eating in the 21st century.

ZhongAn is billing the program — called “GoGo Chicken” — as a way for health-conscious city slickers to follow the life cycle of their food, giving them an illusory experience of being just a little less displaced from a food system that is increasingly out of sight of most. Right now only 100,000 birds have been outfitted with GPS bracelets, but the Shanghai-based company plans to incorporate about 23 million birds into project over the next three years, pushing the Internet of Things onto Chinese farms, according to the South China Morning Post.

Once inducted into the GoGo Chicken system, the free-range birds will be attached to devices that track their movement and what kind of food they ate. Because these chickens are slow-grown, they’ll live for four to six months, as opposed to the 45 days most factory-farmed chickens live before slaughter. The facial-recognition technology will ensure that anyone who buys one of these birds will be able to actually see chicken from their smartphones. Technology that can recognize an animal’s face is not new; Google has used it to identify pets in people’s photos.

ZhongAn is trying to take advantage of the growing “farm-based tourism” trend in China, where city-dwellers take weekend trips out to farms where they can interact with food animals. The company has said its technology is a tool for members of China’s surging middle class who are also concerned about food safety and want to keep closer tabs on the sources of what they eat. Those anxieties spread rapidly in China after a 2014 crisis in which a supplier for McDonald’s and KFC was caught selling rotting and expired meats to the fast-food chains.

This article originally appeared in Quartz.

Handoffs: Bills of Lading and the Cargo Custody Relay

Handoffs: Bills of Lading and the Cargo Custody Relay

We’re hearing more and more about high-tech ways to track and trace our food as it moves through the supply chain to our plates — from barcodes to blockchains. But the practice of tracking food shipments isn’t new. It has long been a way for shippers to make sure their cargo is safe and secure throughout its voyage.

At each step along the supply chain, anyone who handles a shipment has custody, a specific term that connotes legal responsibility. The chain of custody confirms the identity and quantity of the shipment (e.g., 400 bushels of Italian pears), declares that the pears were continuously controlled and transported by the carrier and identifies everyone who handled the pears throughout the shipment. Having a clear record of this chain makes it possible for the shipper to track any theft or contamination of the cargo on its way to the receiver.

The documentation that authenticates the movement of food between a shipper and a freight carrier is known as a bill of lading. It’s a receipt that confirms the transition of goods from one link in the chain to the next. This document notes the details of the cargo and its intended path to you, including the type and quantity of a shipment. It’s provided at the end of a shipment to verify delivery of the goods shipped and is the basis for payment for the goods at the receiving end of a shipment. Without these bills of lading, neither the farmer nor the exporter gets paid.

Going back to maritime practices — before planes, trains and automobiles got involved — the bill of lading would have been prepared by a merchant to indicate that the shipper was responsible for delivering the items consigned to him. These receipts were originally called “bills of loading” as far back as the Middle Ages, and they listed what a merchant actually loaded onto a ship. It was a sort of contract between a merchant and a shipper that confirmed the receipt and safe transport of a specific cargo list.

Since shippers often lost ships and their cargo at sea, the bills of lading helped account for losses and reparations. Like today’s tracking tools, bills of lading indicate a transfer of responsibility throughout the supply chain. They are legal documents that confirm ownership of the goods and, as such, are assets the shipper can use to secure credit against expenses.

As the bill of lading moves through the supply chain with a shipment of, say, bags of coffee beans on pallets, the legal notion of ownership and custody travels with the chain. But the cargo list and a receipt are only two tools that leave footprints along a supply chain. These days, we need much more data than these documents provide to effectively track food through our chain.

Newer tools include smart labels with barcodes that communicate harvest dates and times. Scans of smart tags indicate precisely when food passes through the supply chain, when a USDA inspector has certified a meat shipment or the temperature of the interior of a shipping container or a tractor trailer. All this data is being gathered as food travels to our plates.

These new tools go far beyond those old bills of lading, but the intention of those bills and the chain of custody remain the same.

Just wait until blockchain technology picks up where bills of lading and custody left off. Then you’ll be able to see the passage of ownership of your carrots all the way from the farmer’s plot to your pot, who handled your carrot and why, when, where and maybe even the weather outside when the carrots moved between buildings. Be prepared for some surprises.

Blockchain Explained

A blockchain is a distributed, digital ledger used to track shipments. Rather than a single document — the old bill of lading — traveling throughout a supply chain, the information contained in that one document exists in many computers in the network along the way. So every time a bushel of apples moves through its supply chain, information about its steps are recorded, including who moved it, when, why and what resulted from the movement. The data form blocks that leave unique “fingerprints” along the chain. Any attempt to change a fingerprint travels throughout the entire chain, alerting everyone that the integrity of the chain was compromised. If someone steals an apple, the blockchain will know where and when it disappeared. For the food industry, blockchain appears to be a way to prevent food fraud and ensure food safety. Real-time awareness of inconsistencies in the chain will enable faster and more precise responses to food-borne disease outbreaks. Consider the Romaine lettuce contamination in early 2018. Blockchains would have enabled investigators to track back all the way to rows of lettuce growing in the field. At least that’s the theory.