$10 for one-hour delivery and $4 for three-hour delivery seems extraordinarily cheap, given the someone is actually going to a grocery store, buying this stuff, and delivering it to you.
If those are the actual operations, it appears like it would be very difficult to turn a profit. However, it does seem like there are plenty of good ways to make the operations more efficient once demand is high enough while still remaining light on assets like warehouses, trucks, etc.
Those prices are comparable to services like Peapod which take orders the day before and plan out at least relatively efficient schedules. Especially if they're moving to a yearly flat rate subscription to get people to make more frequent orders, I don't see how this can work.
But I wish them the best of luck, it would be wonderful for them and their customers.
If those are the actual operations, it appears like it would be very difficult to turn a profit. However, it does seem like there are plenty of good ways to make the operations more efficient once demand is high enough while still remaining light on assets like warehouses, trucks, etc.