Rapid grocer Jiffy has announced it is stopping all consumer-facing operations this week, as it makes a “major strategic pivot” to become a dedicated rapid delivery software company.
The company said: “it will become Jiffy’s complete focus”.
Click & collect from dark stores will continue “for the coming week or so”, with deliveries expected to end sooner.
Jiffy said they will consult with riders and warehouse operatives about their futures at the company and will “gradually downsize” its store estate and staff over the coming weeks.
“That was the toughest part of the decision, obviously,” Jiffy chief executive Vladimir Kholiaznikov said to The Grocer.
“This was a difficult decision to make, and one that was only made after careful consideration, but it is a decision that will ensure Jiffy continues to build sustained, long-term growth in the future – to the benefit of our customers, suppliers and investors.”
Jiffy expects to turn a profit within a “shorter horizon” than as a rapid grocer.
READ MORE: Rapid grocer Jiffy price match Tesco on 150 products
Kholiaznikov said the company had 20 strong leads and a “strong pipeline” of retailers and brands wanting to use its software to offer customers their own rapid delivery service.
As staff numbers go down, Jiffy’s cost base will reduce, Kholiaznikov added, making the “break-even journey” much shorter.
Several customers globally are running q-commerce operations based on Jiffy’s proprietary technology, including one major rapid grocer in Asia.
Its software “integrates thousands of q-commerce nuances” and consists of 20 micro-services such as customer mobile apps, distributed warehouse management and real-time inventory management, and allows brands to service customers who have “become accustomed to receiving goods to their homes within minutes of ordering” Jiffy said.
Jiffy’s ‘Quick-Commerce as a Service’ (QCaaS), which launched in January, enable brands and retailers to offer deliveries of their products in 15 minutes or less via their own DTC site, but using Jiffy’s ordering system and fulfilment network.
Brewdog became the first partner of the service after using it to launch its rapid beer delivery service, BrewDog Express.
Jiffy expects retailers from other categories to take up its technology, including small electronics and mobile phones.
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1 Comment. Leave new
What a load of rubbish! Jiffy started a year ago, it was a very poor start with inexperienced dimwits to run the business. They were opening units without thinking straight. Their operations team was a shambles. They advertised as delivering in environment friendly e-bikes but most of their riders were using a mopeds! They sold dreams to their staff when they started promising bikes mopeds insurance and safety equipment but no such thing happened. 15 minute delivery ? Maybe 10% of the orders were reached to customers within 15 mins otherwise it was always late. I don’t know what they’ll do with a software company as all apps and software they had to use for jiffy was ancient. They never looked after their staff. It was clear from the beginning it’s to do with money launder. Later they struggled to find investors as this was not a feasible business. After the Russia Ukraine conflict it got worse as vlad is Russian. I know so many staff who were mistreated then sacked or suspended as they were struggling. Riders were warned with misconduct if they refused a order for weather reasons or weight. It is good they have closed down. These people should not be allowed to start businesses, they need to be looked at properly before granting business license/permits.