Agile Innovation Update – June 2015

Each month we bring you the FreshMinds Agile Innovation Update. This month we’re looking at new partnerships for on-demand delivery start-up Postmates, rumours of an own label food and drink range from Amazon and the changing balance of cash and non-cash payments.

Postmates partnership sees Apple Store provide same-day delivery

Apple has announced a new partnership with on-demand delivery start-up, Postmates. The service, which will be limited to parts of San Francisco, will provide same-day delivery of a limited number of products from the Apple Store app, including charging cables and Apple TV. Apple is not the first brand to have partnered with Postmates. In March, Starbucks announced its plans to work with the start-up in the second half of 2015 to pilot a new service in Seattle, to deliver orders made on the Starbucks app direct to customers. Although these are both small-scale pilots, are new delivery mechanisms and partnerships to meet consumers’ need for instant gratification such as these a sign of things to come?

Is Amazon on the brink of launching its own label food and drink range?

Does Amazon have ambitions to become an FMCG brand in its own right? According to the Wall Street Journal, the online retailer is taking steps to do so, having trademarked a number of categories of products, including cereal and coffee, under its premium Elements brand, which was launched in December last year. In April, Amazon announced its Dash button, a device that enables consumers to place orders for everyday items at the tap of a button and without leaving their homes. Together, these developments would be a powerful combination to threaten retailers and FMCG brands alike.

Non-cash payments made by businesses and consumers overtake cash payments

According to new figures from the Payments Council, non-cash payments made by businesses and consumers have overtaken cash payments for the first time in UK history. However, payments made by consumers alone have yet to meet this landmark: 52% of these payments are still made in cash. Interesting, of these cash payments, a quarter are for goods of less than £1 and half are for purchases of less than £5. It will be interesting to observe how the proliferation of contactless and mobile payments, which can be used to make smaller payments more easily and conveniently, will influence these figures in future.