>> Drive through services for hamburgers, fried chicken and coffee have been around for a while. Now major grocery stores are bring the same convenience to consumers with curbside pick ups. It's their latest attempt to stave of Amazon's long arms. Grocers have been on edge since the e-commerce giant took over Whole Foods earlier this year.
Reuters correspondent, Lisa Baertlein.>> It's pretty likely that we're gonna see Whole Foods pick up. Amazon was testing curbside with Amazon Fresh. They have two locations in Seattle called Amazon Fresh pickup. So, it's likely to come, but they're running behind. They have 400 stores, and Kroger has 2,800 stores and Wal-Mart has almost 5,000.
>> The service is free at Wal-Mart, but Kroger users pay about 5 to $7 for the convenience. Kroger's needs at least 4 hours to prepare the order. Then drive in, and your groceries will get wheeled out and loaded up to your car. It's an added labor cost for stores.
But Kroger executives tell Reuters, in 3 to 5 years, as staff become more efficient and sales rise, it won't matter to the company whether shopping is online or in store. Kroger's offers the service in more than 1,000 of it's stores and has been adding about 4 to 500 stores a year.
So will it succeed where fresh grocery deliveries have so far struggled?>> Fresh grocery delivery is being tested a bazillion ways. Shipt is doing it with a subscription model for $99 a month. Instacart does it, you pay a little bit extra and then a fee on top. The economics are still the thing that is out for people to understand.
Nobody knows quite yet how to make enough money.>> While home delivery for grocery remains a challenge, consumers are embracing grab-and-go. Mobile order aheads has been such a success at Starbucks, for example, that McDonald's and other fast food chains are jumping on board. And now the grocery stores are rolling out the red carpet as well.