The Real Cost of 15-Minute Grocery Delivery
by beincharge | Oct 31, 2025
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In teams, choose a topic. And be ready to lead an in class discussion.
Business Models & Economics
| Term | Definition / Example |
|---|
| Business model | The structure of how a company creates and captures value (e.g., free delivery but profit through volume). |
| Profit margin | The percentage of profit made on sales after all costs are subtracted. |
| Scalability | The ability of a business to handle increased demand without raising costs dramatically. |
| Unit economics | The direct revenues and costs associated with one “unit” of product or service (e.g., one grocery order). |
| Fixed costs / Variable costs | Fixed = warehouse rent, salaries; Variable = packaging, fuel, payment fees. |
| Loss leader strategy | Selling at a loss to attract customers and gain market share. |
| Economies of scale | Cost advantages gained by increasing production or distribution volume. |
| Break-even point | When total revenue equals total costs — the company starts making profit. |
Logistics & Supply Chain
| Term | Definition / Example |
|---|
| Fulfilment center / Micro-warehouse | Small urban storage units used to prepare rapid deliveries (also called dark stores). |
| Last-mile delivery | The final step of a delivery process from warehouse to customer. |
| Inventory management | Controlling stock levels to balance availability and cost. |
| Lead time | The time between placing an order and receiving it. |
| Distribution network | The system of warehouses, transport, and processes that move goods to customers. |
| On-demand logistics | Delivery systems designed to fulfill orders immediately after they’re placed. |
| Delivery fleet | The group of vehicles or riders responsible for delivering goods. |
| Urban congestion | Traffic density caused by delivery vehicles or high transport demand in cities. |
Retailing & Marketing
| Term | Definition / Example |
|---|
| Customer acquisition cost (CAC) | The cost of attracting a new customer (through discounts, ads, promotions). |
| Customer retention | Strategies to keep existing customers returning (e.g., loyalty programs). |
| Brand differentiation | How a company makes its service distinct from competitors. |
| Market saturation | When a market has too many similar competitors, leaving little room for growth. |
| Consumer behavior | The study of how customers select, buy, and use products. |
| Impulse buying | Purchasing something spontaneously, often driven by convenience or emotion. |
| Subscription model | A recurring payment plan to access a product or service regularly. |
| Push notification / Alert | A digital marketing tool that encourages repeat orders via mobile apps. |
Investment & Finance
| Term | Definition / Example |
|---|
| Venture capital (VC) | Investment from firms that fund risky startups with high growth potential. |
| Funding round | A stage in which a startup raises money from investors (e.g., Series A, Series B). |
| Burn rate | The rate at which a startup spends its capital before becoming profitable. |
| Valuation | The estimated worth of a company, often inflated during funding booms. |
| Liquidity | How easily assets can be converted into cash — important for startups seeking flexibility. |
| Financial sustainability | The ability of a business to cover costs and generate profit long-term. |
Employment & Labor Models
| Term | Definition / Example |
|---|
| Gig economy | A labor market based on short-term contracts or freelance work rather than permanent jobs. |
| Hourly wage / Fixed salary | Payment models for delivery staff (employees vs. contractors). |
| Labor rights | Workers’ legal and ethical rights (e.g., benefits, insurance, working conditions). |
| Employee benefits | Health insurance, paid leave, or compensation offered to workers. |
| Workforce management | Organizing and supervising employees to maintain service efficiency. |
| Labor cost | The total expense of employing workers, including salaries and benefits. |
Technology & Innovation
| Term | Definition / Example |
|---|
| Delivery platform | The digital app or system connecting customers, warehouses, and couriers. |
| Algorithmic dispatching | Software that assigns delivery riders automatically based on location and timing. |
| Automation | The use of technology to reduce human labor (e.g., robotic fulfillment centers). |
| Real-time tracking | Monitoring delivery progress live through GPS. |
| Data-driven decision-making | Using analytics to optimize logistics or marketing strategies. |
Sustainability & Ethics
| Term | Definition / Example |
|---|
| Carbon footprint | Total greenhouse gas emissions caused by delivery operations. |
| Sustainable logistics | Environmentally responsible management of transportation and warehousing. |
| Waste management | Handling of packaging, spoiled food, and other byproducts of fast delivery. |
| Corporate social responsibility (CSR) | Business practices that promote ethical and social good. |
| Overconsumption | Buying more than necessary, often encouraged by convenience or marketing. |
Market Evolution & Strategy
| Term | Definition / Example |
|---|
| Consolidation | Mergers and acquisitions that reduce the number of competitors. |
| Disruption | Innovation that radically changes existing markets or industries. |
| Hypergrowth | Extremely fast business expansion, often funded by investors. |
| First-mover advantage | Competitive edge gained by being the first to enter a new market. |
| Exit strategy | How investors or founders plan to withdraw from a business (e.g., selling, IPO). |
| Long-term viability | The likelihood that a company’s model will endure once subsidies disappear. |
