During the pandemic, speedy delivery really took off.
With online grocery at a high, and some shoppers avoiding heading to the supermarket, hordes of shoppers turned to one of the many specialist grocery delivery firms – more than a dozen rapid grocery apps launched in the US and Europe by mid-2021 – to order grocery essentials to their door within 30 minutes, much like they had done for takeaway food for years.
However, as restrictions have eased and shoppers have returned back to stores, demand has fallen.
As a result, the crowded speedy grocery delivery market has seen a shake up, with consolidation, streamlining and even exits.
Grocery Gazette looks at the status of the big players post-pandemic.
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Getir
The dip in demand has brought about market consolidation, and one of the biggest deals saw Turkish giant Getir acquire rival Gorillas for $1.2bn in December.
In an indication of how swiftly the speedy delivery market is contracting, Gorillas had been valued at $3bn the previous year.
Funding had dried up for Gorillas, which was heavily loss making, whilst acquiring its rival would allow Getir to lower its customer acquisition costs and drive greater efficiencies.
However, the signs coming out of Getir are far from positive.
The delivery firm has shut a raft of dark stores, including all of its shops in Wales and South West England, alongside stores in Birmingham and London and has axed around 300 jobs in the UK this year.
Getir’s UK boss Chris Chaaya also exited the business in May.
Last month it revealed it would cease operations in Spain, Italy and Portugal in order to focus on other markets, including the UK.
GoPuff
US delivery firm GoPuff launched in the UK in 2021, as it looked to take advantage of the online grocery boom. It generated approximately $1bn (£788m) in global sales 2021, three times the amount made in 2020 as demand skyrocketed.
However, life has been tougher since restrictions eased and the firm has had to make some big strategic calls.
It retreated from Spain last year, just six months after launching in the country, in order to concentrate on the UK.
Gopuff has also entered some smart strategic partnership in order to boost demand. Towards the end of last year, it tied up with Uber to enable customers to order from Gopuff’s wide range of everyday essentials, including branded products and fresh food items, direct from the Uber Eats app.
In June, Gopuff introduced a new section on its mobile app called ‘Morrisons Corner’, where users are able to purchase own-label Morrisons products direct from its app.
The rapid delivery service has been working with the supermarket chain since March last year, offering customers a wide range of competitively priced items.
The food delivery company also inked a deal with logistics company Wincanton to launch a London-based distribution centre, to be used as a hub for Gopuff’s dark stores in the capital.
The site in Greenford allows Gopuff to accept bigger volumes directly from its suppliers, rather than requiring them to distribute to each dark store or rely on wholesalers.
Jiffy
Rapid grocer Jiffy announced last year that it was stopping all consumer-facing operations, as it made a “major strategic pivot” to become a dedicated rapid delivery software company.
At the time, Jiffy said they will consult with riders and warehouse operatives about their futures at the company and would “gradually downsize” its store estate and staff.
As a result, quick commerce platform Zapp signed an exclusive partnership with Jiffy to provide continuity to Jiffy’s customers and further consolidate its leading position in London.
Zapp
Zapp, which counts Formula One driver Lewis Hamilton as an investor, has not been immune to the travails of the q-commerce world.
The firm was in talks to lay off 10% of its staff, around 250 people, in May 2022. It has also been closing its dark stores portfolio.
Zapp also followed Gopuff by partnering with Uber Eats which allowed customers to have access to 2,000 products, including fine wines and champagne, and even produce from Daylesford farm and Italian delicatessen Lina Stores.
It followed this up with a similar partnership with Deliveroo in December as it tries to put its offer in front of more consumers.
Uber Eats, Deliveroo and Just Eat
Although the speedy grocery market is jam-packed with specialists, delivery giants such as Uber, Deliveroo and Just Eat are also vying for a slice of the pie.
Uber Eats recently partnered with the Co-op, enabling customers to earn rewards through the retailer’s Member Prices initiative – available in the Uber Eats app at checkout.
Waitrose also teamed up with Uber Eats for a multi-year partnership, aiming to deliver groceries in as little as 20 minutes.
The partnership has initially launched on the delivery service’s platform in five London stores, including Finchley Road, West Hampstead, Clerkenwell, St Katharine Docks and Greenwich.
It will then roll out to more than 200 shops across the UK by the end of August.
Deliveroo launched with Asda and expanded partnerships with Waitrose, Sainsbury’s and the Co-op in the last year. It also works with health and beauty retailer Boots, which now delivers via Deliveroo from 125 stores.
Deliveroo also expanded its rapid grocery delivery service in London, after a surge in demand from customers who live in the Capital.
Named Deliveroo HOP, the expansion will see the opening of two new delivery-only grocery sites, in partnership with Waitrose and Morrisons.
Just Eat has partnered with a variety of retailers recent months – for instance, it has collaborated with Asda, rolling out its café menu to 129 new locations.
The Co-op then teamed up with Just Eat to increase its online availability and to deliver goods from nearly 1,000 stores in the UK.
It also partnered with Iceland in March, where over 14% of its shoppers have used the service to buy Iceland products since its launch, new research shows.
