Co-op is continuing to grow its presence in the quick commerce market through a new partnership with Uber Direct, a white-label delivery solution.
Uber Direct will enable consumers to order groceries via Co-op’s own online store with rapid delivery via Uber Eats’ delivery network.
The convenience retailer has grown its e-commerce business through both its own online shop and partnerships. The trial with Uber Direct will initially enable 50 more Co-op stores to offer quick online home delivery as part of the society’s aim to grow the reach of its own online shop to around 1,000 of its stores by the end of the year.
Last year, the retailer stated that it wanted to control 30% of the rapid delivery grocery market, with platforms such as Uber Eats, Just Eat, and Deliveroo meaning its products are already available to order online from nearly 1,100 Co-op stores.
Chris Conway, Co-op’s eCommerce Director, said: “We have ambitious goals for the continued growth of our e-commerce business, and know that our member-owners and customers value the ease and convenience of quick and convenient online home delivery. “Innovation and effective partnerships are a fundamental part of our approach as we grow the reach of both our own online shop, and our work with strategic partners – offering our member-owners and customers in more communities an extensive range of groceries on-demand from Co-op’s stores locally.”
Caroline Varga, Head of Uber Direct, added: “We’re proud to work with Co-op to build on its relationship with Uber, and support its work to grow its online delivery service to its member-owners and customers. Our shared focus on speed, reliability and convenience supports Co-op’s growth ambitions to offer food and drink on-demand from more of its stores via Co-op’s own website or app.”
NAM Implications:
- The Co-op’s focus on speed, reliability and convenience in quick delivery via a third party will cost the Co-op…
- …in that online fulfilment to shoppers’ front doors dilutes the bottom line.
- While density of coverage around stores may offer some economies…
- …the question remains: Can retail media incremental revenue, coupled with quick delivery, make a difference?
