Specialist
Director at Weezy Group Ltd
Agenda
- UK rapid grocery delivery TAM estimates and competitive dynamics vs supermarkets and food delivery platforms
- Value chain and unit economics including AOV trends, frequency and cost per delivery
- Customer behaviour trends including CAC (customer acquisition cost) and retention strategies
- Competitive landscape, highlighting Getir, Gorillas, Weezy and Dija
Questions
1.
What is the size and TAM of the UK grocery and rapid grocery delivery markets in the UK?
2.
To what extent is the GBP 80bn UK rapid grocery delivery TAM you estimated penetrated and how might that evolve over the next five years?
3.
Could you elaborate on the growth assumptions and figures from UK rapid grocery delivery players? How are they thinking about growth over the next few years?
4.
What are the biggest drivers and hurdles to consumer adoption and visibility of on-demand grocery delivery?
5.
Some major traditional grocery retailers seem to consider rapid grocery delivery a coronavirus-related fad. The pandemic has obviously accelerated this trend, but do you expect it to continue, despite people returning to offices and life starting to normalise?
6.
Which players do you think are most exposed to losing market share in this industry? Would it be QSRs [quick service restaurants], traditional food delivery players such as Deliveroo and Uber Eats, or is it just the traditional grocery retailers as a whole?
7.
Do you think any of the traditional grocery players would ever try to partner with rapid delivery grocers or maybe roll out their own functions?
8.
Could you outline the economics behind the on-demand grocery delivery model?
9.
How do rapid grocery delivery players approach warehousing and sourcing? Is that generally done in house?
10.
What are the main cost buckets for rapid grocery delivery players other than driver fees?
11.
Are any players experiencing significant labour shortages? Is this putting pressure on wage demands from the drivers?
12.
What range size is the sweet spot for rapid grocery delivery players to include?
13.
How do you think about order volume per month and how fast is this figure accelerating for players?
14.
You mentioned an average basket size of GBP 15-30. Has this evolved over the last year? Is it increasing or decreasing, or do you think that’s a mature range and there’s not much more scope to evolve this?
15.
How do you think about CAC [customer acquisition cost] within the industry?
16.
How do players build brand loyalty and maintain good customer retention levels?
17.
What’s the real hurdle for consumers switching from their traditional methods to going online and using rapid delivery?
18.
Could you outline the data behind industry retention rates? What do you consider a good retention rate for one of these players at maturity?
19.
Could you outline the LTV of a customer in this market, given grocery is such an important part of everyday life?
20.
Could you provide an overview of the key players in the market and how they differ? You mentioned premium players vs offerings aimed at students.
21.
Is there one rapid grocery delivery player which you think might outperform the market given what it’s doing, where it’s based and what its offering is?
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