A significant shift is underway in the instant grocery delivery space. From responding directly to customers’ changing needs with early deliveries at dawn to new quick-commerce rivalry.
Customers’ need for convenience and speed is increasing, and retailers are well aware of this. Gopuff is the latest to adapt to the changing need for faster deliveries whenever customers want it.
The American-based delivery service headquartered in Philadelphia has extended its operating hours and will now be available to deliver around the clock in Liverpool. Gopuff has been operating in the city since September 2020 and has grown significantly.
How is it possible? Gopuff allows customers to order groceries, snacks, and alcohol, which can be delivered to their door within minutes. The company has over 500 micro fulfillment centers to shorten the delivery time. This simplifies the last-mile delivery process significantly.
The decision to extend its offering to 24/7 is based on a 35% increase in late-night orders from its app in Liverpool, the local newspaper reports.
Changing landscape of grocery deliveries
In an attempt to stay ahead, Gopuff is taking the initiative to give customers what they want. Does this mean more quick-commerce companies will follow suit soon?
Gopuff is ahead of the curve by stepping away from traditional trading hours. This move also gives the company a competitive advantage. They are positioning themselves to be different from their competitors, demanding change.
Earlier this month, Walmart identified the same need from customers in a fast-paced life, who needed deliveries before the crack of dawn. As early as six o’clock in the morning, customers can have their groceries delivered to their door. This makes it more convenient to pack away at home before leaving for work.
Statistics show that the grocery market is expanding rapidly, and it’s no wonder delivery platforms are looking for ways to gain a competitive advantage.
According to a Numerator survey, the grocery market is valued at around $800 billion, and Walmart has the most significant sales share at nearly 24%. Walmart generates 60% of its revenue from selling groceries.
Grocery services looking at paid subscriptions
More grocery stores are adding paid subscriptions to their offering. The latest is quick-commerce company Zepto. It has launched a paid subscription service called Zepto Pass. This will enable customers to enjoy discounts and free deliveries.
Next month, Target will launch a paid subscription program offering same-day delivery service. It’s competing with many retailers, hoping they will pay for a subscription to benefit from convenience.
Although customers want speed, they also want reliability. But will they be willing to pay a monthly fee for that service?
A study done by McKinsey and Company says: “In fact, the variety of delivery options and the perceived quality of the delivery service are major decision-making criteria for online customers.”
About the author
Mia is a multi-award-winning journalist. She has more than 14 years of experience in mainstream media. She's covered many historic moments that happened in Africa and internationally. She has a strong focus on human interest stories, to bring her readers and viewers closer to the topics at hand. Do you have a story you would like her to expose, report on, or consider? Please send your request to Newsdesk@locate2u.com.
