Austin grocery delivery company 360 Groceries wants to fill suburban void

by Dena Levitz
May 4, 2015

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These days practically anything can be delivered to your home in minutes. From takeout to flower bouquets there’s no shortage of businesses ready to respond to a digital request and then get people and things from point A to point B.

But newly launched Austin startup 360 Groceries is trying to fill a very specific niche in this crowded space. The model is the same as popular grocery delivery service Instacart, only 360 Groceries Founder Mike Lipsey said his pricing is lower and his clientele a market segment that’s so far untapped.

Most grocery delivery companies don’t charge a delivery fee, but they do mark up the cost of items. 360 Groceries does the opposite, charging a delivery fee because of its expertise around transportation and services and keeping prices constant.

“We’re much more transparent,” Lipsey said. “And our price comes out lower.”

Users create an account on 360’s site and then can pick their store or stores and do the shopping, selecting products and then adding them to their virtual carts. Users can even create a “pantry” of items they purchase often in order to make the shopping process easier. After hitting “deliver” the system calculates a delivery charge and approximates the total bill, which is finalized post-shopping. Then, the customer can keep an eye on the progress of the food pickup and status of the driver. Lipsey guarantees all food items, so any can be removed from the bill if unsatisfactory.

As far as target users, 360 Groceries is trying to appeal particularly to residents in the suburbs or those who go back and forth during the day between Austin’s center and its surrounding areas. Seniors are expected to be a big portion of this, as are business professionals. 

360 Groceries has much grander aspirations than grocery delivery. Its founder comes from the business world, having worked in finance for 19 years. Eventually he wants the 360 brand to be a suite of on-demand delivery services, providing transportation needs for those without it across the Austin region -- and potentially to other geographic areas of the country.

“There’s a huge need for these transportation services,” Lipsey said. “Time is limited, and we’re allowing people to spend more time with their family and on the things they want to.”

So how will 360 compete with the big guys like Uber and Lyft?

Again, Lipsey emphasizes that seniors and others are clamoring for ways to get to doctors’ appointments and to go from the city to the suburbs and vice versa. In a sense, Uber and other companies like it have propelled his business. Lipsey said it’s “created curiosity among communities” who hear about Lyft and Uber. But then these communities aren't able to take advantage of it.

“It allows us to piggyback on that market,” he said. “More people are looking for services like ours now.”

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