Ultrafast Grocery Delivery Services Compete Globally for On-Demand Loyalty

As the ultrafast grocery delivery space begins to see some consolidation, leading services are starting to expand their reach beyond the grocery category. On Monday (Nov. 29), for instance, Yango Deli, the 15-minute grocery delivery arm of Russian tech giant Yandex, announced the launch of Christmas tree delivery.

“Ultrafast e-grocery companies are often thought of as snacks and drinks corner shops of the post-COVID era, but at Yango Deli we are striving to be more than that by giving people back their time, which they would have otherwise spent doing large supermarket trips,” Evgeny Chernikov, general manager of Yango Deli UK, said in a statement. “We want Londoners to spend time with their loved ones … while we take care of getting them whatever they need for the celebrations, including beautiful Christmas trees.”

The move comes at a time when companies that began as restaurant aggregators and hot food delivery services are expanding their marketplaces to include on-demand delivery of a much wider range of items. In recent news, for example, Uber announced a partnership with telehealth platform and wellness brand Hims & Hers on Monday to deliver the brand’s personal care products through Uber Eats. Meanwhile, DoorDash continues to expand the retail categories in its marketplace, as does grocery aggregator Instacart.

Initiatives such as Yango Deli’s not only create additional sales opportunities, but also allow the services to engage with more parts of consumers’ daily routines, securing loyalty in the face of stiff competition.

Earlier this month, Istanbul-based ultrafast grocery delivery service Getir came to the United States, launching in Chicago, bringing the total number of countries in which it operates to nine. By the end of the year, the company aims to launch its delivery service in New York City and Boston as well.

“Our expansion into the United States is well-timed; we’ve been perfecting our approach in ultrafast delivery since we created the model 6 years ago,” Nazim Salur, founder of Getir, said in a statement. “Now that we’re established and thriving in Europe, it’s an optimal time for us to move further afield and introduce ourselves to the US market. We’re excited to showcase our best-in-class service to new customers and firmly establish ourselves as the true innovators and pioneers of this bustling sector.”

Additionally, less than two weeks after the Chicago launch, it was reported that Getir has acquired London-based ultrafast delivery service Weezy, which was in competition with the Turkish company’s United Kingdom operations, with Getir operating in 15 U.K. cities and towns.

Read more: Delivery Startup Getir to Buy UK’s Weezy Amid Major Consolidation Moves in Ultrafast Grocery Market

Overall, the ultrafast grocery delivery space includes not only multinational players such as Getir and Gorillas, but also smaller, local players, which in the United States include New York City’s Fridge No More and Chicago’s Go Grocer, among others.

These services emerge at a time when consumers are increasingly seeking out digital options to get their grocery needs met without shopping in stores. In fact, 72% of grocery shoppers now order groceries online for curbside pickup or home delivery, according to data from PYMNTS’ How We Eat Playbook, created in collaboration with Carat from Fiserv, which featured a census-balanced survey of more than 5,200 U.S. adults.

See also: Up for Grabs: Restaurants and Grocers See Path to Picking up 200M New Customers

Additionally, research from PYMNTS’ study, What Consumers Expect From Their Grocery Shopping Experiences, created in collaboration with ACI Worldwide, which featured a census-balanced survey of more than 2,300 U.S. adults, found 34% of consumers now buy groceries online, with only 18% of consumers preferring these eCommerce options to in-store shopping.

You may also like: Digital Features Can Help Grocers Win Over 43 Percent Of Shoppers