Cover Story: Home Deliveries

Keep the faith

News of a Co-op and Uber Eats partnership comes weeks after analysts predicted that inflation-hit consumers would rethink ordering food in.

Co-op and Uber Eats are teaming up as part of the retailer’s plans to expand its on-demand online home delivery service and further increase quick access to its products in local communities.

The partnership will enable shoppers to order quick, online home delivery via the Uber Eats app from around 1,000 Co-op food stores by the end of September, with groceries delivered in as little as 30 minutes. With the phased roll-out underway from this week, customers can use the Uber Eats app to choose from over 6,000 products stocked in local Co-op stores, with the convenience retailer using the physical footprint of its existing store estate for deliveries to be made quickly and conveniently in the local community.

FRESH PICKINGS

With products picked fresh in local stores, the service is available for a full grocery shop as well as on-demand top-up and forgotten items, meal ideas and treats for evenings in at home. Groceries available via Uber Eats include Co-op’s award-wining, ethically sourced quality own brand and Irresistible range – with all Co-op’s meat 100% British including in its ready meals and sandwiches. This sits alongside fresh, healthy products, fruit and vegetables and popular brands, household names, offers and promotions.

Chris Conway, Co-op’s eCommerce Director, said: “We are committed to offering quality and value with Co-op’s ease, speed, and convenience. As a convenience retailer, we know the ability to pop into a local Co-op will always be important to customers, but we also know that fast and flexible options online are important to shoppers too – and so by using our stores located in the heart of communities to provide rapid home deliveries, we can meet customer needs and make shopping easier, however, wherever and whenever our Members and customers choose to shop with us.”

Alex Troughton, Head of Comme- Wrce at Uber Eats UK, added: “We are delighted to be partnering with Co-op, one of the most popular grocery retailers in the UK. Our mission is to be the platform of choice across the UK, and with this partnership, more customers will be able to order all their grocery needs at the touch of the button. So, whether you are in need of some dinner inspiration or looking to do the weekly shop, Uber Eats and Co-op have got you covered.”

Co-op’s online offer has grown at pace through both its own online shop – shop.coop.co.uk – which it launched and 2019, and with partners. It has seen more than 40 consecutive months of growth, with ambitions to increase its online business to £300m this year. The channel reaches new customers and increases access to Co-op’s products, with further opportunities for quick-convenience growth seen among urban and high-density populations; smaller or single households; shoppers without access to their own vehicle or who are looking to cut short journeys; and time-squeezed shoppers.

TIMELY TIE-UP

The deal comes weeks after analysts predicted that inflation-hit consumers would rethink ordering food in. Earlier this month, Deliveroo cut its annual revenue forecast last month amid a worsening cost of living crisis, prompting questions over the growth prospects of delivery firms.

“Investors have written off food delivery as the next shoe to drop as consumers tighten up their wallets,” Bernstein analyst Nikhil Devnani said, pointing to the disappointing performance of Deliveroo.

The tie-up continues a strong year for Uber Eats, coming after deals with Asda, One Stop, Tesco, BP, and Iceland. Uber Eats also introduced a number of changes to its grocery service, including giving customers the ability to place orders even when stores are closed, allowing customers to choose item replacements if something is out of stock, as well as several improvements for retailers.

Nobody really knows for sure what is going to happen to home delivery in the future, but at the very least this deal will get Co-op products – which are sold in hundreds of independent convenience stores across the UK – in front of new customers.