Inspection of produce goes way beyond looking for rot. With FD the apples and some other produce was great, but most of their produce was unacceptably unripe. So we bought most of our produce from the local bodegas and used FD for boxed or other pre-packaged goods. They were actually cheaper, and they had a wide range of specialty items we couldn't find at the local markets.
Rot at a store was something entirely unfamiliar to me until I lived in NYC. There was literally rotting produce on the shelves. I couldn't fathom it. The biggest, richest city in the country...the supermarkets there were a disgrace. They're just awful. There are terribly few genuine "supermarkets", and all (or almost all) of them are outside Manhattan. The big one in Brooklyn near the river had rotting produce on the shelves. It blew my mind. The Foodmaxx in my hometown of 15K people is outright superior.
The supermarkets in NYC were smaller, had an inferior selection, didn't have particularly great prices in relation to other markets (especially on an absolute scale where services like Amazon don't suffer the inflation of more affluent metro areas), have massively reduced wait times at checkout, are more cleanly, less crowded, less chaotic, quieter, and are more plentiful such that you don't have to go out of your way to shop there. I literally saw a fight break out once in Brooklyn between two women (with their kids in tow) over the last of some brand of frozen pizzas. Again, it was nearly impossible to fathom.
I think this is why those services are attractive to people in urban areas. When you shop at a WinCo you'll see why people in less populated areas gravitate towards supermarkets.