X5 Retail Group makes express delivery move

Russian food retailer X5 Retail Group has unveiled a new express delivery service called Okolo (Nearby), powered by a unified technology platform.

Launched last year, express delivery from its Pyaterochka and Perekrestok brands is now available from 439 X5 stores located in five Russian cities. Customers will continue using the Pyaterochka Dostavka and Perekrestok.Bystro apps to make purchases, while deliveries will be handled by Okolo.

The aforementioned platform relies on partnerships with local small businesses offering express delivery in cities across Russia, particularly in the food and ready-to-eat segments, which will deliver orders for X5. Contact with couriers takes place via a unified mobile app that couriers can use to accept delivery requests, update the order status and their itineraries.

During the first stage of initiative, the technology platform and the Okolo service will focus on delivering orders from X5 stores. During later stages, the service will be offered to other food market players.

“As the express delivery industry rapidly develops, we are looking for innovative approaches to doing business that will be welcomed by our customers in the context of the Covid-19 pandemic. By simplifying procedures and accelerating decision making processes, we have created an environment conductive to internal startup projects,” says Igor Shekhterman, CEO at X5 Retail Group.

“The pandemic gave a new impetus to the rapid evolution of digital services and the customer experience. The booming interest in X5’s online services witnessed in March, April and May led us to the decision to create a single technology platform to power express deliveries across our formats.”

“We wanted this platform to stand out in the market and reflect our customer engagement strategy. Okolo will help us embrace a single express delivery positioning and management system and unlock new potential in developing our online channels,” he concludes.