Rapid grocery delivery players seeking to hit 100 stores within the next year
Competition is already fierce in London, with the likes of Weezy, Gopuff, Getir, Gorillas, Zapp and Jiffy aggressively marketing their services. Weezy, Gorillas and Getir have also launched in other cities, including Manchester, Bristol and Brighton, but “there’s still a long tail of markets that will be addressable”. Indeed, only half of Greater London is covered at present.
“It’s an ever-moving target, an ever-changing topic, but I think all of the major players, Gorillas, Getir, Zapp, Weezy, have all put out projections of getting to 100 stores within the next year, within the next 18 months,” the specialist said. They also “have aspirations to reach at least 20-30 different cities in the UK within the very near future”, we heard. “Getir, I believe, is probably already at around 50-60 stores in the UK, so it won’t be long before they’re achieving that, and I think others will be hot on their heels.”
Traditional grocery retailers are most at risk of losing market share to this industry, we heard. “If you look at the majority of baskets that we’re seeing, it is realistically a basket that the same customer would be placing in person at a traditional grocery store, or ordering online and having delivered several days later.” The expert revealed that partnerships with traditional retailers are likely as a result, particularly given the level of PE interest in the big players. “Yes, I think it’s safe to say it’s definitely on everyone’s mind.”
After explaining the economics behind the on-demand grocery delivery model, the specialist commented that labour shortages are a significant challenge and will intensify as these businesses continue to grow. Meanwhile, it will be interesting to see how this model impacts food delivery companies including Deliveroo, which has pinned much of its growth on groceries, and Just Eat.
To access all the human insights in Third Bridge Forum’s UK rapid grocery delivery market – Getir, Gorillas, Jiffy & Dija – competitive dynamics & key trends Interview, click here to view the full transcript.
The information used in compiling this document has been obtained by Third Bridge from experts participating in Forum Interviews. Third Bridge does not warrant the accuracy of the information and has not independently verified it. It should not be regarded as a trade recommendation or form the basis of any investment decision.
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