Fast groceries face bumpy ride as cost overtakes Convenience

The economics are tricky when players are battling in a race to the bottom on price and speed of delivery Victoria Scholar, Interactive Investor

- Rhiannon Curry

RAPID delivery apps had a good pandemic. The Covid era restrictions and obstacles to going out and doing a normal shop spawned a whole new industry promising groceries on your front doorstep within 10 minutes.

Now as cost replaces convenience at the top of consumers' minds it is rapidly consolidating - and it appears to be Getir that is stealing a march on its surviving peers. The unmistakable purple and yellow-liveried business with its unmistakable purple and yellow-branded riders - has acquired rival Gorillas for $1.2 billion (£980 million) to make it the largest quick commerce company in Europe.

The deal is the latest acquisition for Turkey-based Getir, which also bought UK company Weezy a year ago, and Blok in Barcelona in July 2021.

According to research from NTT Data, 26% of Londoners have used 10-minute rapid delivery apps, such as Gorillas or Dija, and 11% of Londoners have tried 60-minute delivery apps such as Chop Chop and Tesco Whoosh.

Financiers have been keen to get in on the action: earlier this year, Getir closed a $768 million funding round led by Abu Dhabi state investor Mubadala that valued the firm at about $12 billion.