Supermarket Deliveroos

Deliveroo has ridden the Covid wave. Whilst lockdown increased the volume of takeaways, an opportunity festered behind the scenes: supermarket deliveries. It is no longer just a takeaway platform. To ensure the population were fed, several partnerships with supermarkets were launched. This is a game changer for the budget supermarkets, Aldi and Lidl.

The likes of Tesco, Morrisons, Sainsburys and Asda have scaled online delivery over time, but the implementation of logistics in the food delivery sector is no easy solution. Ocado has been mastering this since its inception in 2000.

Hence where services such as Deliveroo come in offering supermarkets the ability to test the market before spending millions of pounds. Last week, Aldi announced further expansion to offer on-demand groceries from a further 22 stores. The partnership began in May to stores in London, Greater Manchester, Cambridge and the Midlands. The addition will bring delivery to a total of 42 stores. Customers within a 6km radius can choose from a range of 400 Aldi grocery items with a delivery charge of £4.99. Worth it given the low prices?

On the other end of the spectrum, Waitrose has increased its trial with Deliveroo by 25 locations, taking the total to 30 with a product offering of 650 products. In some cases, these can be delivered in 30minutes.

Lidl, however, is yet to launch an online delivery platform or partnership. It is only a matter of time.

Consumer behaviour is changing and the landscape for logistics services to serve the digital economy is more paramount than ever before. Deliveroo’s partnerships with Supermarkets is just an example of the increasing importance of logistics in our ever changing economy.

Polestar has been involved in helping all types of logistics companies. Whether it is a removals companies or 3PL. If you are in the space and believe it is time for a corporate finance transaction, whether it is to fund raise to take advantage of market growth, new technology, a partial disposal to cash in or a full disposal then please do get in touch.

Deliveroo’s on-demand grocery partnerships have proven vital for so many people during this difficult period, allowing families to get the food and household items they need and want quickly.

By Mihir Shah on 22/10/2020