The rapid grocery delivery industry saw a dramatic rise during the pandemic, but post-pandemic dynamics have led to shifts and challenges.
- As the pandemic eased, the demand for speedy delivery waned, prompting market consolidation.
- Significant acquisitions occurred, such as Getir acquiring Gorillas, although reductions and exits in certain regions followed.
- US-based GoPuff refocused its strategy with strategic partnerships while retreating from some markets.
- New strategic shifts were seen with entities like Jiffy and Zapp pivoting or adjusting operations.
During the pandemic, the urgency of grocery delivery catalysed the emergence of numerous rapid delivery apps across the US and Europe. However, with the easing of restrictions, many consumers returned to traditional shopping outlets, leading to a steep decline in demand for quick delivery services. This transition has necessitated restructuring across the sector.
A notable example of this market contraction can be seen in the acquisition of Gorillas by Getir for $1.2 billion, which marked a significant decrease from Gorillas’ previous valuation. Such consolidations are driven by the need to optimise costs and efficiencies. Despite this strategic move, Getir has been closing several UK stores, shedding jobs, and ceasing operations in some European countries.
In the United Kingdom, GoPuff initially thrived by capitalising on online grocery demand, but has since had to recalibrate its operations. This involved withdrawing from Spain and forming alliances with platforms like Uber to expand its service reach. These moves highlight GoPuff’s tactical efforts to adapt to a post-pandemic environment.
Another shift is observed in Jiffy’s decision to abandon consumer-facing services. Transitioning towards a software-centric model, Jiffy partnered with the quick commerce platform Zapp to maintain user service. Zapp, despite its innovative approach and notable investors, has encountered challenges, including staff layoffs and the scaling back of its store network.
Traditional delivery giants have entered the scene aggressively. Uber Eats, Deliveroo, and Just Eat have established partnerships with major retailers, enhancing their grocery delivery services. This includes collaborations with well-known supermarkets to maximise the convenience of offerings to consumers in urban settings.
The post-pandemic era for rapid grocery delivery has been marked by realignment, partnerships, and a fight for market relevance amidst fluctuating consumer demand.
