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Why Walmart is trouncing Amazon in the grocery wars

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Have realistic expectations

When amazon announced the $13.7bn acquisition of Whole Foods Market in 2017, it came after some oddball attempts to strengthen its grocery business, some conceived by Jeff Bezos himself. One was to develop an “ice-cream truck for adults”, driving into neighbourhoods with lights flashing and horns honking, to sell porterhouse steaks, Shigoku oysters, Nintendo games and other goodies. It was quietly shelved. Another was to create a product so unique that only Amazon could supply it. The answer was the “single-cow burger”, a Wagyu beef patty made from the meat of one animal. You can still find them on its website—though they are now permanently out of stock.

Amazon’s purchase of Whole Foods signalled it would take a more conventional approach to the supermarket business. That is probably why, when the deal was announced, Amazon’s share price soared and those of its rivals, such as Walmart, fell. But since then Amazon has treated grocery more like a science experiment than an exercise in seduction, with weak results at Whole Foods and in other formats. Its best-known addition to the retail experience is the “just walk out” technology in physical stores, equivalent to its one-click shopping online. Yet cashierless supermarkets sound like something more beloved of geeks than grocers. What may cut down on time-wasting queues also minimises what some people love about shopping: the human interaction at the till, the hunter-gatherer instinct as they jostle at the meat counter, the Columbian exchange between fellow foodies at the spice rack.

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Cristiano Reus

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A battle of rickshaw apps shows the promise of India’s digital stack

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In india’s startup capital of Bangalore, auto-rickshaw drivers are no less prized than software engineers. Given the city’s chaotic traffic, rickshaws are sometimes the fastest way to get around. But finding one isn’t easy. Threats, pleas and moral appeals are necessary before a driver accepts a ride. The experience is no better with Ola and Uber, two ride-hailing firms which offer rickshaw services for a commission.

Help is at hand. An app called Namma Yatri, launched in November by the rickshaw drivers’ union, directly connects riders to drivers, with no commission for digital middlemen. It averages around 68,000 trips a day, from only 2,000 at the start of the year, and boasts more than 78,000 drivers and 1.4m customers on its platform.

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McDonald’s is about to report earnings

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McDonald’s, in full McDonald’s Corporation, American fast-food chain that is one of the largest in the world, known for its hamburgers, french fries, and especially Big Macs. It is one of the most successful brands in marketing history. Company headquarters are in Chicago.

The first McDonald’s restaurant was opened in 1940 by brothers Maurice (“Mac”) and Richard McDonald in San Bernardino, California. It originally was a drive-in that offered a wide selection of items. However, in 1948 the brothers decided to revamp the business, and after a three-month renovation, a newly envisioned McDonald’s opened. The small restaurant was designed to produce huge quantities of food at low prices. To achieve this, the brothers limited the menu—which only featured hamburgers, potato chips (later replaced by french fries), drinks, and pie—and developed a simple, efficient format that they named the Speedee Service System. This included a self-service counter that eliminated the need for waiters and waitresses, and customers received their food quickly because hamburgers were cooked ahead of time, wrapped, and warmed under heat lamps. These innovations allowed the brothers to charge just 15 cents for a basic hamburger, about half the price of competing restaurants. McDonald’s was a huge success, and the brothers began a franchise program.

Appliances for McDonald’s were purchased from a salesman named Ray Kroc, who was intrigued by their need for eight malt and shake mixers. In 1954 he visited the restaurant to see how a small shop could sell so many milk shakes. Realizing there was great promise in their restaurant concept, Kroc became a franchise agent for the brothers. In April 1955 Kroc launched McDonald’s Systems, Inc., later known as McDonald’s Corporation, in Des Plaines, Illinois, and there he also opened the first McDonald’s franchise east of the Mississippi River. In 1961 Kroc bought out the McDonald brothers.

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