Deliveroo sees “encouraging” response to its Hop service

Deliveroo has seen a “really encouraging” response to its rapid grocery delivery service, which it has dubbed ‘Hop’.

The food delivery giant has adopted the dark store model which has been widely successful for rapid grocery delivery companies over the last 18 months.

Dark stores are small, strategically placed warehouse locations set up like supermarkets where employees pick and pack goods rapidly before riders deliver the goods in 10 minutes or under.

Deliveroo announced  in September it was working with British supermarket Morrisons , one of its existing partners, to offer 1,500 to 2,000 SKUs (stock keeping units) from a site in London.

The company’s chief executive Will Shu said that Deliveroo’s Hop was currently achieving an average delivery time of 11 minutes, on Wednesday.

READ MORE: Deliveroo reveals sales boost despite restaurants reopening

“The early sort of numbers we’ve seen on retention and frequency, albeit given it’s about two months, have been really encouraging, so we’ll be exploring more and more partnerships with different grocers on this model,” he told the Morgan Stanley European Technology, Media and Telecoms conference.

Deliveroo Hop will compete in a market shared by startups including Weezy, Gorillas and Getir, that all follow the same model.

While Deliveroo initially partnered with Co-op to offer grocery delivery around three years ago, orders were typically taking around 20-25 minutes to be dropped off to customers.

This was because orders were being collected and packed from Co-op stores instead of a dark store, which are not meant for customers.

Deliveroo has since inked partnerships with Waitrose, Sainsbury’s and Aldi in the UK.

Shu said that the dark store model compelled his company for a number of reasons including better inventory accuracy than a high street store as well as faster delivery.

“We’ve had almost no stock outs or substitutions, which I think was the critical thing,” he said.

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