Ultra-Fast Delivery in Grocery: How Brands Are Adopting the New Delivery Model

29 December 2020
4 min read

E-commerce has been on the rise since the internet came into our lives, but for the grocery industry, the change has been comparatively slow. Although the online adoption of the FMCG format has been slow, we have seen that things have been heating since 2015, and today, online sales are key for the success of grocers. However, since we, as humans, are hooked on speed, the trends are changing for the grocery industry once again, making it nearly impossible for businesses to keep up with the pace.

Source: Statista

It might not have been a smooth process for the grocery industry to convince people of their online delivery models, but we cannot say the same thing about the express delivery trend. Customers want grocers to offer fast order delivery more than any other retailer. Especially since the COVID-19 pandemic began, shoppers have gotten more and more used to their groceries being delivered, and the latest surveys show that the stores that manage to offer same-day delivery without any negative consequences will be the most profitable. A 2020 study by JungleWorks states that 56% of online consumers between the age of 18-34 years expect to have same-day delivery, and 61% of consumers are willing to pay more for same-day delivery.

It is clear that the express delivery transformation is happening faster than anyone expected and grocers cannot keep up the pace. But crises like these encourage creative solutions and, in this article, we are going to focus on solving the adoption problem.

FMCG and last-mile delivery and express eCommerce partnerships seem to be the most profitable format for same-day delivery adoption

The majority of grocery stores and supermarkets have been offering home delivery for years, but the experience was nowhere near “express.” Since it requires a huge amount of effort and money to create a new fleet to meet the fast delivery demand, some major supermarkets and grocers are finding innovative ways that are profitable for everyone involved. India is a good example of this new delivery app and grocer partnership model. Their leading grocery stores were aware of the massive rise in demand for grocery delivery because of the pandemic and began partnering with delivery giants.

Since the adoption had to be as quick as possible, this is only a short or medium-term solution according to C-levels. Anurag Mathur, head of PwC India shares his thoughts on the partnerships: “Today, it is more about connecting the right inventory to the right place and moving the stock fast. Hence, these strategies might work out in the short term and even in the medium term, if supplies continue to be disrupted in some parts of the country. In the long term, however, they will have to figure out a way to make this profitable.”

Essential for the Next Step: Knowing What Your Customer Wants

Another big challenge for grocers while adopting last-mile delivery is the problem of parceling. Especially in big cities, covering every area with stores is nearly impossible for the grocers. The most reasonable way to solve this problem seems to be with cashier-less stores or warehouses that mainly exist to fulfill last-mile deliveries. Still, opening massive warehouses in every neighbourhood is costly, even without employees.

Like in many areas of a modern-day business, data analysis tools come to the rescue here. Before opening stores in warehouses in all locations, you can test what various customer profiles demand from a delivery app based on their locations and meet these demands accordingly. In the end, you can build an operation that has megastores, small warehouses, with employees of employee-free.

Our Express eCommerce Platform is Built Around Data

The locomotive of all our platforms is strong data analysis tools. For years, we have been designing platforms that power the applications of industry leaders, start-ups, and everyone in between. So yes, we are aware of the importance of accurate data analysis. On our platforms, you can have valuable insights into your customer-base behaviours based on location, income, and more. Data analysis tools also power the inventory tracking mechanisms in our apps, which helps a lot with deciding your product range in various locations.

Learn More About Ubimecs Express eCommerce Platform

Our e-commerce module offers all of the features a grocer needs because we have built the platform with our experience of our Ubimecs Express Module. You can see how you could use Ubimecs Express eCommerce Platform by visiting our product page.

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