Customers willing to pay double for groceries on rapid delivery services

Over half (51%) of consumers find the idea of grocery delivery, within half an hour or less, appealing with research suggesting shoppers are willing to spend more for a premium service, according to digital and data experts, TWC.

According to the report, customers said their typical spend amounting to over £20 on each rapid delivery shop, with more than half exceeding this, over double of the typical in-store convenience basket.

In London, the figures rose to 69% of consumers seeing this type of delivery service as an appealing method of grocery shopping.

On-demand grocery delivery company, Gorillas was best known among Londoners with 68% of consumers aware of its service, closely followed by Getir at 41%.

READ MORE: How Gopuff is fighting back against the rapid grocery delivery crash

Some 42% of shoppers agreed the primary reasoning behind their splurge in rapid delivery was caused by shops being too far away, with 35% of people saying that shops were closed or they liked not having to wait too long for delivery.

However, 28% agreed bad weather prevented them from leaving their homes.

Quick commerce tech start-ups such as Gorillas, Getir, GoPuff and Zapp were also seen as appealing delivery services for both rapid grocery delivery and the premium selection of goods on offer such as fine wines and electronics.

“We are seeing really high levels of consumer interest in rapid delivery of grocery and there is strong evidence that these services attract a different consumer to traditional convenience stores, as well as driving bigger baskets,” TWC communications director Sarah Coleman said.

“That said, these services boomed during the pandemic when demand was incredibly high, with many people isolating and lots of shops and services unable to open.

“Now the world is opening up again, plus the macro-economic climate is challenging, which means investors in rapid delivery and looking for sustainable, long-term business models and consequently we are seeing consolidation and scaling back of some operations.”

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