Deliveroo has seen a “really encouraging” response to its Deliveroo Hop in-dark grocery quick test, and said it would explore more partnerships with retailers using the model.
Deliveroo said in September it was working with British supermarket Morrisons, one of its existing partners, to offer 1,500 to 2,000 SKUs (stock-keeping units) from a site in London.
CEO Will Shu said Wednesday that Deliveroo Hop was achieving an average delivery time of 11 minutes.
“The first numbers that we’ve seen on retention and frequency, although since it’s about two months, they have been really encouraging, so we will explore more and more partnerships with different grocery stores on this model,” he told Morgan Stanley. European conference on technology, media and telecommunications.
The express grocery delivery sector has exploded in major cities like London in the past 12 months, with companies like Getir, Weezy and Gorillas scrambling to deliver orders.
Deliveroo began offering grocery deliveries about three years ago, initially in partnership with retailer Co-op, using a model in which the retailer picks up and packs orders at its stores and Deliveroo passengers deliver them in 20-25 minutes. .
Since then it has partnered with other major retailers including Waitrose, Morrisons, Sainsbury’s and Aldi in the UK and Carrefour in France, Italy and Belgium.
Shu, however, said that the dark store model was compelling for a number of reasons, including better inventory accuracy than a high street store and faster delivery.
“We’ve had almost no stockouts or substitutions, which I think was critical,” he said.
The Platform Executive team hopes you enjoyed the article “Deliveroo Encouraged to Seek More Partners Using the Hop Grocery Trial”. Machine translation from English to a growing list of languages via Google AI Cloud Translation. Initial reports through our official content partners at Thomson Reuters. Reporting by Paul Sandle. Editing of Alexander Smith.
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