Rapid grocery delivery startups disrupt UK food sector

New UK research from Cardlytics highlights the rise and rise of rapid grocery delivery apps like Zapp, Getir and Weezy in 2021, and the impact this is having on supermarkets and convenience stores.

Cardlytics data, based on the purchasing habits of over 22 million UK bank accounts, shows that spend on these apps grew by 123% in the last five months compared to a 22% decrease for traditional supermarkets.

Convenience stores and corner shops also fell by 22% in the same period.

In response, supermarket and convenience brands are increasingly teaming up with delivery platforms to tap into the quick commerce market, with Co-op and Sainsbury’s both offering grocery delivery on Uber Eats and Deliveroo in the past 12 months.

Shhh! 🤫 They never have to know you ordered the biscuits and tea just minutes before they arrived👀 We’ll keep your secret…😉 pic.twitter.com/ImgBHDixrx
— getir_UK (@getir_UK) January 9, 2022

The rise of the Omicron variant and government guidance to reduce social mixing in December helped the likes of Just Eat, Deliveroo and Uber Eats celebrate a record Christmas, with spend up 102% on December 2019.

Overall, takeaway platforms enjoyed healthy growth in the last year, with spend increasing by 72% compared with 20% growth for fast food chains themselves. On average, consumers are also using takeaway platforms 46% more often than during the pandemic.

Charlotte Jamieson, Partnerships Director at Cardlytics UK, says: “The food sector has experienced a disruptive transformation with the rise of rapid grocery delivery apps and the continued success of takeaway platforms, driven by increasingly online savvy and time poor customers.”

She adds: “Despite an absence of new Covid restrictions, consumer confidence signals new pressure on restaurants and bricks and mortar grocers to improve their online and delivery presence.”

“For those brands that want to move their loyal customers to new online channels, offering online only discounts and exclusive online ranges should be front of mind.”

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