Rise in rapid grocery delivery startups causes supermarket spend to fall

The likes of Gorillas, GoPuff, Getir and the swathes of rapid grocery companies that have rushed onto the scene over the course of the pandemic have caused supermarket spend to fall by 22% over the last five months.

Meanwhile, the spend on the grocery delivery startups has boomed by 123% in the last five months, according to research from Cardlytics, which analysed the spending habits of over 22 million UK bank accounts.

Spend at convenience and corner shops also fell by 22% in the same period.

In a bid to slow the decline in spend, many of the grocery sector’s largest entities have partnered up with the rapid delivery platforms to tap into the market.

Both Sainsbury’s and The Co-op have teamed up with Deliveroo and Uber Eats in the past year to offer grocery items on the two platforms.

READ MORE: Grocery delivery boom pushes up London’s commercial property prices

Just Eat, Deliveroo and Uber Eats also enjoyed a stellar Christmas period after the Omicron variant rose to prominence in the UK, seeing spend increase by 102% in December.

Overall takeaway platforms saw healthy growth in the last year, watching spend increase by 72% compared with 20% for fast food chains themselves.

Cardlytics’ research also found that consumers are also using takeaway platforms 46% more often than during the pandemic on average.

“The food sector has experienced a disruptive transformation with the rise of rapid grocery delivery apps and the continued success of takeaway platforms, driven by increasingly online savvy and time poor customers,” Cardlytics partnerships director Charlotte Jamieson said.

“Despite an absence of new Covid restrictions, consumer confidence signals new pressure on restaurants and bricks and mortar grocers to improve their online and delivery presence,” she added.

“For those brands that want to move their loyal customers to new online channels, offering online only discounts and exclusive online ranges should be front of mind.”

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3 Comments. Leave new

  • Simon Browning
    January 12, 2022 1:00 pm

    I’d be really interested to see by what measure the statement “have caused supermarket spend to fall by 22% over the last five months”

    If that’s the case then Supermarkets would be in free fall. Is that really the case and are rapid convenience / grocery companies really grabbing that much share.

    I’m not a supermarket expert but it strikes me as off.

    Reply
  • Damian Sorgiovanni
    January 14, 2022 9:43 am

    I suspect the figures have been misinterpreted. There’s no way supermarkets have lost almost a quarter of revenue in five months. They’re reporting YoY growth. And when you buy groceries through Gorillas or Getir, you’re still buying from the supermarkets anyway.

    Reply

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