The realm of rapid grocery delivery experienced substantial shifts post-pandemic.
- Initially, the pandemic catalysed a surge for quick deliveries, but as normalcy resumed, demand waned.
- This shift saw notable acquisitions, market consolidations, and strategic pivots among key players.
- Global giants like Getir and GoPuff have adopted new strategies to navigate this altered landscape.
- Traditional delivery platforms like Uber and Deliveroo are expanding partnerships to capitalise on changing demands.
During the peak of the pandemic, the demand for swift grocery deliveries surged as consumers opted for online solutions to avoid physical store visits. By mid-2021, over a dozen rapid delivery applications were launched across the US and Europe, providing essentials to customers’ doorsteps within minutes.
As the world gradually transitioned back to pre-pandemic norms, the once-booming demand for rapid grocery services declined, prompting market shifts such as consolidations and exits among key players. A notable transaction took place when Getir, a major player in the sector, acquired Gorillas for $1.2 billion. Gorillas was previously valued at $3 billion in the prior year. This acquisition was a strategic move for Getir to reduce customer acquisition costs and enhance operational efficiencies.
Despite the acquisition, Getir faced significant challenges, including reducing its workforce by 300 jobs in the UK and closing several ‘dark stores’ in regions like Wales, the South West of England, Birmingham, and London. Additionally, Getir withdrew from Spain, Italy, and Portugal, choosing to focus efforts on the UK market.
GoPuff, a US-based delivery firm, expanded in the UK in 2021 in response to the online grocery boom. Although it generated substantial revenue, the firm faced hurdles as pandemic restrictions eased. It withdrew from Spain to concentrate on the UK market and formed strategic alliances to bolster demand, such as a partnership with Uber to allow GoPuff’s offerings on the Uber Eats platform.
Furthermore, GoPuff integrated Morrisons’ products into its app, allowing customers to purchase these items directly. Another strategic partnership saw GoPuff team up with logistics firm Wincanton to enhance its distribution capabilities in London, thereby handling larger volumes directly from suppliers.
In a strategic pivot, Jiffy, another rapid grocery service, shifted from consumer-facing operations to becoming a dedicated software company. It retained a partnership with Zapp to maintain service for its existing customer base in London and further bolster its market presence.
Zapp, which counts Formula One’s Lewis Hamilton among its investors, also faced downsizing, including staff reductions and the closure of ‘dark stores’. To augment its consumer reach, Zapp partnered with both Uber Eats and Deliveroo, showcasing a diverse product range from fine wines to local delicacies.
Beyond these rapid delivery players, established giants such as Uber, Deliveroo, and Just Eat continue to expand their market footprint. Uber Eats has cultivated partnerships with retailers like Co-op and Waitrose, while Deliveroo has strengthened ties with Asda and Boots. Just Eat has formed alliances with several retailers, including Iceland, to enhance product availability.
As competition within this sector intensifies, delivery giants are diversifying their offerings and partnerships. This evolution highlights their commitment to adapting and thriving in the ever-changing landscape of grocery delivery.
The post-pandemic era has necessitated significant adaptations within the rapid grocery delivery sector, marking a transformative phase for the industry.
