Thanks to data collected exclusively for Retail Week by CACI, we can reveal the picture of spend in the rapid delivery market, how Getir managed to crash out of a service that’s in such high demand and the demographic groups it attracted that are now up for grabs.
When did next-day become too late? The need-it-now consumer has driven a spike in rapid delivery partnerships outside of takeaways and groceries, with brand names on delivery apps ranging from The Perfume Shop to Ann Summers.
But just because there’s demand doesn’t mean everyone offering these services is thriving. The market’s saturation saw Turkish service Getir’s rapid reversal out of the UK in April, along with the rest of Europe and the US.
When Getir made its shock exit, it cited its failure to meet the rising operational costs in international territories. But does the surge in retail partnerships tell us that it’s still all to play for in rapid delivery?
Thanks to data collected exclusively for Retail Week by CACI, we can reveal the picture of spend in the rapid delivery market, how Getir managed to crash out of a service that’s in such high demand, and the demographic groups it attracted that are now up for grabs.
After a strong start in October 2021, Getir pulled ahead until experiencing a rapid 20% spending decline in April 2023 and a larger 30% decrease in September 2023.
The group had previously managed to keep up with competitors throughout 2022 but faced increased competition from supermarkets’ investments in their own rapid delivery services like Sainsbury’s Chop Chop and Ocado Zoom.
The need for speed
Here are some of the most notable retail partnerships that have been struck up with rapid delivery operators over the last year
Following a partnership with Just Eat, key citites across the UK can now order over 1,000 lines of cosmetics, toiletries, medicine and even the famous meal deal from the UK’s biggest health and beauty retailer, Boots.
In August, B&Q joined Deliveroo offering over 600 lines for rapid delivery in as little as 25 minutes – although only customers within delivery range of a B&Q Local are eligible for the service.
Richer Sounds and Just Eat
Just this month, ‘emergency’ purchases such as phone chargers/charging cables, headphones and bluetooth speakers from the entertainment retailer became available via rapid delivery as well as ‘as needed’ products like projectors, turntables and speakers.
The Perfume Shop and Deliveroo
The Perfume Shop partnered with Deliveroo to offer an “emergency spritz of perfume on demand” service called “Eau De-Liveroo Rider” in October, to promote its launch on the app.
CACI senior location analytics consultant Harriet Jack said: “The sheer number of companies entering the rapid grocery delivery market, particularly throughout Covid, meant the market became very competitive almost overnight.
“This is because younger professionals with busy schedules prefer same-day or immediate delivery for groceries, reflecting a shift away from traditional weekly bulk shopping trips.
“Instead of planning grocery lists in advance, consumers are increasingly making decisions on what to buy based on immediate needs.”
Data shows that the largest demographic who previously used Getir were ‘cash-strapped families’ which explains why the group experienced a loss as the cost-of-living crisis affected those deciding between cost and speed.
Jack added: “The cost-of-living crisis shone a spotlight on price sensitivity and the balance between value and convenience.
“Well-established names like Deliveroo, Uber Eats, and Just Eat stand to gain the most from Getir’s exit.
“These companies already have a larger market presence, established infrastructure, and more diversified business models, making them well-positioned to absorb Getir’s customer base.”
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