The publisher expects online grocery to split into various sub-channels. Akin to the situation in physical offline grocery, where several channels coexist, such as hypermarkets, supermarkets, discounters, convenience stores, organic specialists, this will probably be mirrored by online grocery concepts. And maybe even price segmentation will set in between them.
While in the more mature markets the weekly shop is on the whole served well in the online channel through the big multichannel retailers with next day (or later) deliveries, the more immediate shopper missions had not been on the agenda prior to COVID-19. This has changed, the Instacart clones (basically a third party pick and delivery service) had an outstanding 2020 (the grocery divisions of Deliveroo, Uber Eats, everli and glovo). But these players are now being disrupted by a new breed of online grocery players which are all about speed and convenience, the rapid convenience store delivery apps such as Getir, Dija, Weezy, Gorillas, Jiffy and Zapp.
The ultra-rapid players have their own mini dark stores/depots in urban catchments and cut out the retailers for sourcing products. The hyperlocal nature of their business model enables them to pick for and reach customers’ households within 10-15 minutes, in many cases being quicker than the shopper going to the store themselves. In the right circumstances such as a distressed shop late at night for OTC products, essential ingredients or the like this can be a very attractive offer.
Following the model of US start-up goPuff, these players are trying to become global champions. Most of the other players are to various degrees copying the goPuff business model, even though the US player was not the first to come up with local hubs. And currently, this is where all the hot investment and start-up money is flowing. The promise to capital markets/PE/investor community is to build a truly global grocery business (where all the traditional players have failed) because the model is easily replicable any and everywhere and so it becomes a flag-planting exercise and race for market share (just like the meal delivery apps). To guarantee the ultra-rapid delivery times the business model needs to be necessarily urban though.
While there are many unanswered questions, mainly around profitability, for many shopping missions especially in the bigger cities this is probably the future of delivery, after all, no one wants slower deliveries and once the infrastructure is in place on the front and back end (the logistics set up and the riders) a lot of other services can ride on this too. Other big unanswered questions apart from costs/profitability are whether there are scale benefits, as 10 minutes implies that this is a point-to-point play in logistics. One simply cannot group trips into the catchment, if the rider has to be on the individual shopper’s front door with a 10-minute window.
In certain aspects, the rise of these new app players is a big threat to click and collect - but definitely for the convenience store sector, which so far had been shielded from the online grocery channel shift. The publisher would advise convenience store operators to have a long hard look at this and perhaps to launch their own service or partner up with an external service provider - but this would have to happen on a hyper-local level and is very cost-prohibitive.
Table of Contents
1. Executive Summary
2. The Ultra Fast Start Ups
- Overview: Gorillas, Getir, Dija, Weezy, Zapp and Fancy, New Channel for Food
- Overview: 10-Minute Turnaround Guarantee
- Overview: Delivery Fees a Route to Profitability?
- Overview: Promise to Investors to Build a Truly Global Grocery Business
3. Gopuff
- Gopuff Raises $380M at a $3.9B Valuation
- Gopuff Buys Liquor Store Chain Bevmo!
- Softbank Invested $750M in Gopuff Last Summer
- Gopuff Becomes a $9Bn Grocery Delivery Company
4. Getir
- Getir Launches Grocery Delivery Service in London
5. Cajoo
- Cajoo Raises €6M for Paris Expansion
- Cajoo - Ten Micro-Fulfillment Centers to Cover Paris
6. Gorillas
- Gorillas Has Raised $44M in Series a Funding
- The Business Model and Its Range
- New Management for Gorillas
- Gorillas in Berlin
- Other German Players: Flink and Bring
7. Germany
- Germany - Size and Growth of the Market
- Knuspr/Rohlik - a New “Traditional” Entrant
- Amazon/Tegut - Careful Expansion
- Kaufland - Going for Cooperations in CEE
- Kaufland - But No Suitable Domestic Partner
8. Aldi
- Aldi Sued and the New Global It Architecture
- Aldi Sued - Global Digitalisation
- Aldi Nord - Going Online
- Aldi - Sued and Nord Reorganising Online Together
- Aldi - the Online Challenge
9. France
- France - the New EU Online Grocery Leader
- France Online Grocery Lockdown Data
- Home Delivery Remains Small
- The Country of the “Drive”
- Drive: Sales and Growth 2013-2020
- Drives - the Winners: E.Leclerc, Les Mousquetaires
- Drive: Market Shares 2020, E.Leclerc to Chronodrive
- E.Leclerc - Compressing 4 Online Years into One
- Carrefour Online Grocery Growth in 2020
- Future of the Drive: from Pedestrians to Market Places?
- Amazon France: Online Grocery Only as a Service Provider
10. Spain
- Spain - Online Grocery Market Reaches €2.0Bn
- Spain Online Grocery Data
- Mercadona - Forced to Shut Down Online During COVID
- Mercadona - Losing the Online Crown, Opening Up Again
- Carrefour - the New Market Leader, Dia
- El Corte Ingles - Strength in Cities, Dark Stores
- Amazon Fresh Starts in Spain
- Aldi and Glovo
- Glovo - Raises €450M in Series F
11. Italy
- Italian Online Grocery at €1.6Bn in 2020
- Expanding from the North to the South
- Conad - the New Market Leader, Integrating Auchan
- Esselunga, Coop, Carrefour
- Everli/Supermercato24
- Cortilia Raising New Funds
- Amazonfresh in Italy
12. Strategy
- Strategy Overview
- Can Ultra Fast Deliveries Become Profitable?
- Towards a Sharing Infrastructure?
- Picnic: New Breed of Tech Start Up
- Picnic - Choosing a Different Strategic Option
- Netherlands/Germany: Picnic, 12-15 Drops Per Hour
- Efficiency Rather Than Speed
- Picnic is Growing Fast, 2020 Record
- Picnic Expanding into France
13. FMCG Going D2C
- FMCG Players Going Direct
- Danone, Kraft Heinz, Arla, Henkel
- Lindt, Procter & Gamble, Unilever
- D2C an Established Channel
- FMCG - Creating Online Bundles, Pepsico, Heinz
- FMCG - Sidestepping Retailers in Pandemic
14. Outlook
- The Future - Online to Mirror Offline Shopping Missions
15. Sources
- Tables & Charts
- Table Picnic is Growing Fast, 2020 Record
- Chart France Online Grocery Lockdown Data
- Chart Drive: Sales and Growth 2013-2020
- Chart Drive: Market Shares 2020, E.Leclerc to Chronodrive
- Chart Carrefour Online Grocery Growth in 2020
- Chart Spain Online Grocery Data
Companies Mentioned
- Aldi
- Amazon
- Arla
- Bevmo
- Bring
- Cajoo
- Carrefour
- Conad
- Coop
- Cortilia
- Danone
- Deliveroo
- Dia
- Dija
- E.Leclerc
- El Corte Ingles
- Esselunga
- Everli/Supermercato24
- Flink
- Getir
- Glovo
- GoPuff
- Gorillas
- Henkel
- Jiffy
- Kaufland
- Knuspr/Rohlik
- Kraft Heinz
- Les Mousquetaires
- Lidl
- Lindt
- Mercadona
- Pepsico
- Picnic
- Procter & Gamble
- Softbank
- Tegut
- Uber Eats
- Unilever
- Weezy
- Zapp
Methodology
Thought provoking analysis combined with actionable recommendations based on best practice, real-life case examples provide clients with key deliverables that are heavily focused on solutions offering strategic insight, innovation and impact assessments of major trends from within the sector and beyond.
Based on the publisher's deep understanding of the EU’s retail markets, long established professional expertise and experience in the sector the solutions are always pragmatic, comprehensive, creative, reliable and implementable.
The publisher's core offer comprises a dedicated report service, on site client presentations as well as ethnographic consumer research delivered in video format and a dedicated store pictures library for benchmarking purposes.
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