Navigating Grocery Trade Amidst COVID-19: Strategies for Perseverance
In the wake of the global pandemic, various companies have entered the on-demand grocery delivery space, preparing their on-demand business for the post-COVID world. This shift has been a response to the increasing reliance of consumers on pickup and delivery services during the quarantine period.
Zomato, the popular food delivery platform, has collaborated with Grofers to introduce grocery delivery services across 80 cities in India. The move is part of a broader trend that is expected to grow significantly. According to market predictions, the on-demand grocery delivery market is anticipated to grow from $36.2 billion to $117.0 billion between 2019 and 2023.
During the quarantine period, consumers have been relying heavily on services provided by Walmart, Kroger, and Instacart, despite potential delays in grocery home delivery or waiting 2-3 days for their orders. This trend suggests that on-demand grocery delivery is not only becoming popular but is also aiding in the fight against the coronavirus.
To start a successful on-demand grocery business, it is crucial to conduct market research and competitive analysis, invest in minimum viable product (MVP) development, decide the optimal business and revenue model, pick the best features and tech stack, hire a reputed app development partner, promote the application smartly, and be adaptable.
Notably, the company that partnered with UberEats during the COVID-19 pandemic for delivery of food and household items in Paris was Careem, a Dubai-based vehicle-for-hire company acquired by Uber in January 2020. Careem took over Uber Eats operations in some regions during the pandemic.
Delivery Hero, another major player in the industry, has added around 50,000 restaurants and 1,500 other verticals such as groceries and pharmacies into their marketplace in the past three weeks. Uber Eats has also partnered with France's supermarket giant, Carrefour, to deliver groceries to Paris residents in real-time.
In response to the growing demand for essential items, DoorDash has introduced a new program to deliver items like paper towels, cleaning supplies, and medicines at consumers' doorsteps. Uber Eats is also planning to deliver items from pet stores and pharmacies, and delivering gas station convenience store items to people's homes in Brazil and Spain, respectively.
A survey by eMeals revealed that 34% of respondents are sending their weekly shopping list to online grocery stores or delivery services apps instead of going to their local stores. This pattern of consuming groceries is expected to last longer, even after the global emergency ends.
As the world adapts to the new normal, the on-demand grocery delivery market is poised for significant growth, offering consumers a convenient and safe way to access their essential needs.
