Farmstead launches Grocery OS tech to other grocers

US online grocer Farmstead is making its in-house grocery delivery software Grocery OS available to other retailers.

It says that a top three US grocer has already implemented the technology, which helped them rapidly and inexpensively expand delivery capacity in multiple regional markets on the East Coast.

“As Covid-19 drives skyrocketing online grocery adoption, many grocers are realising that a new way forward is required immediately,” says Pradeep Elankumaran, Co-founder and CEO, Farmstead.

“Existing third-party delivery options increase customers’ costs to levels approximately 20% higher than what the typical US household can support each week, and increase grocers’ fulfilment costs to unsustainable levels. New robotics options increase grocers’ expenses dramatically without actually driving the additional growth required to get to profitability.”

In response to these problems, many retailers are recruiting their own pick and delivery workforces, while turning to ‘dark grocery’ options, in an effort to increase delivery capacity while refining costs, with Amazon leading the charge.

“Unfortunately, controlling costs in dark grocery environments require substantial technology improvements and orchestration that to date have been inaccessible to national grocers,” says Elankumaran.

He adds that Grocery OS provides “access to cutting edge demand generation, predictive analytics, and labour and driver orchestration tools - focused on the single goal of helping grocers attract and retain their in-store customers using the latest online business models and tactics.”