Farmstead Says The Supermarket Isn’t Necessary Any Longer

The Lempert Report
November 27, 2017

Farmstead is a San Francisco based artificial intelligence-powered micro-grocer operation that says it is poised to “reinvent” the supermarket model — if not completely eliminate it — with the help of analytics and technology that facilitates the delivery of food from farm to fridge in 60 minutes.

Think of it as an online delivery with a different model. Farmstead customers select items they’d like to purchase from what the company calls a “curated array of local farm produce and grocery products.” After the first order is placed by a customer, the company’s AI technology uses the shopping list to predict each user’s habits and thus knows precisely how much food to order from local providers on a regular basis. So they are not stocking warehouse full of products then hoping someone will order – but rather they are putting the customer first to tell Farmstead what to order.

“By stocking a constellation of micro-warehouses in the Bay Area with just the right amount of local, minimally-packaged foods, Farmstead delivery drivers are algorithmically routed to use the most efficient, traffic-free, eco-friendly routes, resulting in less congestion,” the company says about their process. 

Farmstead reports they have completed over 15,000 deliveries in the Bay Area and plans to go national. Prices match those in traditional supermarkets. Delivery in one hour costs $4.99, same day $3.99 and no delivery charge at all if a customer commits to a weekly delivery.