PDQuick acquisition fills a hole for WhyRunOut, CEO says
Same-day delivery service WhyRunOut.com acquired PDQuick.com to fill a hole in its coverage and because WhyRunOut management believes that eliminating redundancies between the two services can make PDQuick profitable, Dan Frahm, WhyRunOut CEO, tells Internet Retailer. “It strategically made sense because there was a hole in our coverage,” Frahm says.
WhyRunOut operates a web site for consumers to shop for groceries and makes other consumer deliveries as well. WhyRunOut personnel pick the items from one of 15 Stater Bros. Markets in Southern California, from north of Los Angeles to the Mexican border and east to Palm Springs, with the exception of Los Angeles proper. PDQuick, which WhyRunOut acquired earlier this month, serves Los Angeles, delivering snacks and convenience food items.
WhyRunOut charges $6.99 per delivery. What sets it apart from the other online grocery shopping services is that it earns a commission from State Bros. for bringing incremental business to the stores. Frahm says a recent survey of WhyRunOut customers found that 96% were not Stater Bros. customers. Stater Bros. is the largest independent supermarket chain in Southern California, but holds 4th place among all supermarket chains in the area.
Frahm believes that the local nature of the WhyRunOut structure and the fulfillment from store inventory gives the company a model that can expand easily into new markets.
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