Uber is considering how to capitalize on the boom in super-fast grocery delivery in Europe. Many startups are entering this sector and raising millions. To attract customers, promotional offers are multiplied and the same promise is presented as a sales pitch: delivery in 15 minutes.
The VTC company is considering how to tap into this specific niche in the delivery industry and launch a similar offering in Europe, Bloomberg reported on October 14, 2021, upon receiving information from people familiar with the matter. Delivery sector that Uber has been investing in for several months, particularly driven by the Covid-19 pandemic and the slowdown in its original VTC activity.
Uber’s delivery offering, of which Uber Eats is the showcase, is gaining momentum. The US-based company said earlier this year that its grocery delivery business, which launched last summer, was on track to record $ 3 billion in bookings per year, Bloomberg said. The pandemic has dramatically increased demand for these offerings, be it restaurant meal delivery or groceries and alcohol.
So all the players started offering faster and faster deliveries. Competitors are multiplying, be it Flink, Gorillas, Getir, Everli, Cajoo (in which Carrefour has invested) and others. Uber on delivery’s competitors American DoorDash and German Delivery Hero have already made significant investments in startups Flink and Gorillas. Deliveroo, meanwhile, took a different approach by collaborating with Wm Morrison Supermarkets.
Globally, venture capitalists closed deals worth 11.3 billion euros ($ 13.1 billion) in 2021 for the delivery of groceries (figures collected through October 11). Europe represents 3.9 billion euros, according to PitchBook.
Approaching a partner?
To penetrate this market, Uber could partner with a supermarket chain or a new company that already offers this type of service. In the United States, Uber partnered with the startup Gopuff to take advantage of its network of mini-stores and develop its fast delivery offering for grocery products. Uber has also taken over the Chilean start-up Cornershop specialized in home delivery of groceries to develop its offer in Latin America.
In London, Bloomberg adds, its customers can order with Jiffy, a startup that offers 15-minute grocery and convenience delivery. In France, Uber has forged partnerships with supermarkets like Casino. But it still doesn’t offer a super fast delivery service. Orders increased 178% in Europe, the Middle East and Africa for Uber in the first quarter of 2021 compared to the previous one, Bloomberg said. The interest of the VTC giant in this sector is not about to wane.
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