Morrisons could lose exclusive Deliveroo supply deal

Deliveroo could drop Morrisons as the exclusive wholesaler for its new grocery venture, planning to explore deals with “more and more” supermarkets.

The startup launched Hop two months ago in Battersea and Vauxhall, with Morrisons acting as a supplier to its “dark store”.

Previously, Deliveroo earned a commission by bringing shopping straight from supermarkets.

According to Reuters, chief executive Will Shu said Hop’s early months had been “really encouraging”.

READ MORE: Morrisons exits stock market ahead of £7bn takeover

“We’ll be exploring more and more partnerships with different grocers on this model,” he told a Morgan Stanley conference.

The Deliveroo founder had already hinted that he was open to working with other retailers when Hop launched.

Shu added that the dark store model was superior to delivering from grocers because it was faster and rarely ran out of products.

“We’ve had almost no stock outs or substitutions, which I think was the critical thing,” he said.

Even if Deliveroo acquires new partners to spread its coverage, it may still be hampered by setting up a network of dark stores.

Property company British Land recently revealed that the recent e-commerce boom meant there was “colossal demand” for warehouses in London.

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