Case Study

How Good Eggs used Luca to build a pricing and promotional process without having to scale their team.

Tanvi Surti
Jul 1, 2024

About

Good Eggs is a California-based online grocer with deep roots in the Bay Area and has operated locally for the last 10 years. They have some of the highest quality and sourcing standards in the industry through partnerships with local suppliers and farmers. Good Eggs also offers one of the most flexible delivery platforms in the industry, which allows consumers to opt for same-day deliveries without requiring a subscription.

The Pricing Challenge

Like most other grocers in their space, Good Eggs made pricing decisions in spreadsheets and manually collected market data to inform their own pricing decisions. After realizing that this approach doesn’t scale as their business expanded, the Good Eggs team decided to adopt an automated, science-driven approach to pricing their business to get the most value out of their pricing strategy. 

They wanted to stop making pricing decisions in spreadsheets, and wasting manual hours in SKU-level decision making. After looking at many providers on the market, the Good Eggs picked Luca as the best fit for their growing business.

“I was skeptical that there would be a flexible, scalable solution that could handle the one-off constraints and edge cases we deal with at Good Eggs, considering our selection of specialty grocery items and homegrown processes. I was impressed with Luca’s AI-powered platform and its configurability, which is is essential to operating a grocery business at scale.” said Chris Jocson, VP of Technology and Finance at Good Eggs “With Luca, we are able to price holistically while removing the grunt-work of manual price changes. Within weeks, we observed a measurable profitability bump.”

Impact

Good Eggs experimented with distinct pricing strategies using Luca’s Scenario Planner – testing prices that were oriented around elasticities, around margins and around competitor constraints. Their category managers finally settled on a pricing strategy that worked well for their scenario.

Their strategy showed them a 9% improvement in profitability for their SKUs, helping them see first hand the meaningful profitability impact of small and meaningful pricing changes.

“We believe that in grocery, Pricing has to be AI-powered but human-steered. Category Managers need pricing smarts, but also need to be able to tweak and direct their pricing outcome with high levels of agency.” said Tanvi Surti, co-Founder and CEO of Luca “We learned at Uber that pricing can be extremely high-leverage but also should never be a black box. We are building a platform which has Uber-level pricing smarts but with a modern interface with transparent and configurable decision making.”

Author

Tanvi Surti
Tanvi is the CEO and Co-Founder at Luca. Before Luca, Tanvi spent a decade building product teams at Uber and Microsoft. At Uber, she led the pricing team that created ~$1B in margin improvements on the ridesharing business, and now gets to help retailers solve the same problem, at scale.

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