Online grocery, UK, Blossom Capital, Creandum, and Index Ventures, secured $20M , expanded its operations also in Amsterdam , raised over $550 million , 15 cities by the end of 2021

Clearly a lot is happening in the global online grocery market right now and the UK is no behind. Online grocery shopping has skyrocketed up 230% compared to pre-pandemic levels. A host of European and UK startups have launched with the promise of delivering grocery online within 10-15 minutes and they all are battling each other fiercely in this race of fastest first. 

The battle of on-demand fresh grocery services

The current generation of online grocery startups is flawlessly trying to address issues like fighting for slots, damaged goods, disappointing substitutions, and poor time management by building their own fulfillment centres. In industry terms, it is dubbed as Dark Stores or Cloud Stores — basically, they are only for delivering internet orders. Once the order is placed via an app, items will be picked, packed, and delivered to customers. 

As per industry experts, this full-stack or vertical approach and the visibility it provides are supposed to produce enough supply chain and logistics efficiency to make the unit economics work.

While £9.8 billion has been invested into the super-fast delivery market globally and with the UK having a plethora of speedy online grocery delivery apps ready to bring fresh and branded groceries to consumer’s doorsteps competing with the likes of Ocado, Waitrose, Tesco and Whole Foods, we at UKTN take a look at how they compete with each other in terms of price, delivery time and products they offer and more. 

Online grocery, UK, Blossom Capital, Creandum, and Index Ventures, secured $20M , expanded its operations also in Amsterdam , raised over $550 million , 15 cities by the end of 2021

Jiffy

Delivery time: 15 mins

Delivery charge: Free

UK cities: London

Founder/s: Artur Shamalov

Funding: £2.7M

Launched in March 2021, the online grocery startup has already scored backing from venture capital fund LVL1 Group. Further, the first investment round for the startup was also attended by AddVenture, TA Ventures, Vladimir Kholiaznikov, also angel investors including Oskar Hartmann, Alexander Nevinskiy and Dominique Locher. Headed by a team with extensive experience in online and offline retail, including former managers from Sainsbury’s, Deliveroo and Revolut, Jiffy offers a variety of fruits, vegetables, meat, and other essential household items from both popular and local suppliers with a total product range of above 2000 SKUs per store.

Currently, the company has six stores in London and plans to launch a further 20 local fulfilment warehouses across the UK later this year. It is already negotiating the next investment round to make its ultrafast grocery delivery service available across the UK. Further, Jiffy also claims to have first-term sheets signed as it sees major interest from international investors.

Online grocery, UK, Blossom Capital, Creandum, and Index Ventures, secured $20M , expanded its operations also in Amsterdam , raised over $550 million , 15 cities by the end of 2021

Image credits: Dija

Dija

Delivery time: 10 mins

Delivery charge: £1.79

UK cities: London

Founder/s: Alberto Menolascina and Yusuf Saban

Funding: £14.9M

Dija was launched earlier this year by former Deliveroo executives Alberto Menolascina and Yusuf Saban. To ensure quick delivery, each hub carries more than 2,000 products sold at recommended retail prices. 

With backing from leading investors including Blossom Capital, Creandum, and Index Ventures, the startup uses data to improve efficiency and spot buying patterns to deliver a hassle-free customer experience. Reportedly, the London-based online-delivery startup is in talks with GoPuff, the US delivery app for acquisition. The deal is not finalised yet but is expected to close within a month.  

Online grocery, UK, Blossom Capital, Creandum, and Index Ventures, secured $20M , expanded its operations also in Amsterdam , raised over $550 million , 15 cities by the end of 2021

Weezy

Delivery time: 15 mins

Delivery charge: £2.95

UK cities: London, Brighton, Bristol

Founder/s: Alec Dent and Kristof Van Beveren

Funding: £16.7M

Weezy is yet another startup launched in 2020 that wants to make 15-minute delivery a success and is nowadays seen all around London. Their products range from fresh produce, cupboard staples, pharmacy items, cleaning products, alcohol and more, with 2,000 separate product lines stocked. Working with wholesalers, Weezy also sources groceries from independent bakers, butchers and markets. Started in Fulham and Chelsea districts, the company is planning to open 40 more UK sites by the end of 2021.

In January, Weezy secured $20M (nearly £14.6M) Series A funding led by New York-based VC fund Left Lane Capital. While establishing Weezy, the co-founders worked in a few shifts for Deliveroo just to see and understand how it works – the delivery, logistics and time taken for delivery. 

Online grocery, UK, Blossom Capital, Creandum, and Index Ventures, secured $20M , expanded its operations also in Amsterdam , raised over $550 million , 15 cities by the end of 2021

Image credits: Zapp

Zapp

Delivery time: 20 mins (delivers 24/7)

Delivery charge: £1.99

UK cities: London

Founder/s: Joe Falter and Navid Hadzaad

Funding: £73M

Zapp is another homegrown startup from London founded in 2020 battling out for its chunk of market shares in on-demand fresh groceries. Zapp operates on a vertical or dark store model — Zappstore, stocks more than 2,000 products in various locations in London including Chelsea, Fulham, Notting Hill, and more. They’re already planning aggressive UK expansion, watch this space for updates next week.  

Notably, the company employs the riders directly unlike Deliveroo which uses the gig economy model. Recently, the Atomico-backed on-demand delivery startup has also expanded its operations also in Amsterdam, marking its first international presence outside the UK. 

Online grocery, UK, Blossom Capital, Creandum, and Index Ventures, secured $20M , expanded its operations also in Amsterdam , raised over $550 million , 15 cities by the end of 2021

Getir

Delivery time: Free (for new customers; otherwise £1.99) 

Delivery charge: 10 mins

UK cities: London, Manchester, Birmingham

Founder/s: Nazim Salur, Serkan Borancili, Tuncay Tutek, Dogan Dalyan, and Mert Salur

Funding: £795M

All the way from Turkey, the unicorn online grocery delivery brand Getir also launched its rapid delivery service in London in Feb 2021. Recently, the company raised over $550 million (nearly £390 million), tripling its valuation to over $7.5 billion (nearly £5.3 billion). 

In the UK, Getir is planning a major expansion by doubling its workforce to 1,500 and operating in up to 15 cities by the end of 2021. Offering a selection of 1,500 everyday items, currently, Getir serves 45% of London (predominantly zones 1, 2 & 3), operating from 28 strategically located dark stores. 

Online grocery, UK, Blossom Capital, Creandum, and Index Ventures, secured $20M , expanded its operations also in Amsterdam , raised over $550 million , 15 cities by the end of 2021

Image credits: Gorillas

Gorillas

Delivery time: 10 mins

Delivery charge: £1.80

UK cities: London, Manchester, Nottingham, Southampton, Cambridge

Founder/s: Kağan Sümer

Funding: £262.3M

The Berlin-based on-demand grocery delivery startup has already taken the spot of the fastest European startup to reach unicorn status. Similar to other startups that deliver groceries in ten minutes, Gorillas operates various micro warehouses in each neighborhood it serves. 

Claims to be “on a mission to redefine convenience retail,” the company allows customers to purchase a wide array of standard grocery items, as well as products from hyperlocal vendors so that consumers can shop from and support their favorite local businesses. 

Similar to Zapp, Gorillas’ riders are provided full-time employment and full-time riders receive benefits traditional employees would receive in similar industries, like healthcare, bikes, uniforms, and other equipment.

Since its inception, Gorillas has expanded to more than 25+ cities, including Amsterdam, London, and Munich, and built up more than 75+ micro fulfillment centers. Currently, the service is available in the UK, Germany, the Netherlands, and France.

Do you use any of these online groceries apps? What was your experience? Let us know in the comments section below.

For online grocery apps: If any of the information is not updated, please write to us at [email protected]


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