Rapid grocery delivery firm Farmstead launches in Chicago

US-based online grocer Farmstead has opened a waitlist for its upcoming Chicago launch. 

Service is scheduled to begin in early 2022, and will initially be available in both the city of Chicago and nearby suburbs, with delivery in as little as one hour.

Chicago is Farmstead’s fifth market. The company’s service originated in the San Francisco Bay area, and it also serves Miami, Fla. and Charlotte and Raleigh-Durham, NC.

Customers can choose a same-day delivery slot (a two or three hour guaranteed delivery window) for one-off, every day ordering, or sign up for a free once a week delivery.

All deliveries are batched together with other orders in the same neighbourhood, to reduce carbon emissions.

Farmstead says that more than 70% of customers eventually sign up for weekly deliveries, earning additional discounts on fresh staple products they purchase regularly, while getting guaranteed delivery windows each week.

The venture leverages proprietary AI technology and a dark store model. It has plans to expand nationwide to a primarily suburban, mid-market audience.

“Chicagoans love grocery delivery – we’ve had hundreds of requests to expand our service there,” says Pradeep Elankumaran, Co-founder and CEO, Farmstead.

“Right now, their available delivery options come with high fees and markups. Farmstead will spoil Chicagoans with no fees, low prices, great customer service and delivery to both the city and the suburbs.”

Source: RTIH