The post-pandemic era has reshaped the speedy grocery delivery sector, prompting significant consolidations and strategic pivots.
- During the pandemic, rapid grocery delivery flourished, but with eased restrictions, demand has dwindled, leading to market contraction.
- Major industry players underwent strategic changes, with some companies merging and others reevaluating their business models.
- Giants like Getir and GoPuff restructured operations and pursued new collaborations to maintain market presence.
- Despite challenges, partnerships with established delivery platforms indicate a path forward for the remaining operators.
The evolution of the speedy grocery delivery market has been marked by considerable restructurings post-pandemic. The convenience and safety provided during the pandemic saw numerous rapid grocery apps emerge, but as restrictions eased, the demand receded. This shift has driven companies to rethink their strategies, leading to consolidation, streamlining, and in some cases, exiting the market.
A pivotal development in the industry was Turkish company Getir’s acquisition of rival Gorillas for $1.2 billion. This deal reflects the intense competitive pressures and the necessity for economies of scale within the sector. Despite this move, Getir’s challenges continue, evidenced by the closure of many dark stores and significant job cuts in the UK. Furthermore, Getir has ceased operations in Spain, Italy, and Portugal to concentrate on markets like the UK.
In contrast, US-based GoPuff has pursued a strategy of targeted expansion and strategic partnerships. Following a retreat from Spain, GoPuff focused its efforts on the UK, forming alliances with Uber Eats and launching a ‘Morrisons Corner’ for exclusive product offerings. A new distribution centre in London further supports its logistical needs, aiming to enhance operational efficiency.
Jiffy’s transition from a consumer-facing company to a software-centric business represents another adaptation in the face of shifting market dynamics. This pivot allowed quick commerce platform Zapp to partner with Jiffy, offering continuity to its customer base and strengthening its London market position.
Despite backing from notable investors like Lewis Hamilton, Zapp has not been immune to the broader industry’s challenges, including staff reductions and the closure of dark stores. However, by forming partnerships with Uber Eats and Deliveroo, Zapp aims to broaden its consumer reach, offering thousands of product choices through these platforms.
Established delivery giants such as Uber, Deliveroo, and Just Eat have also intensified their presence in the market through strategic collaborations. Uber Eats’ collaborations with Co-op and Waitrose exemplify efforts to leverage retail partnerships for enhanced customer engagement. Similarly, Deliveroo and Just Eat have expanded their networks with leading grocery and retail chains to capture a greater market share.
The post-pandemic speedy grocery delivery landscape evidences strategic pivots and partnerships as companies adapt to new consumer behaviours and market realities.
