Online groceries 2.0

1. 1. Spiralling costs

   → Dark stores have specific space and location requirements so they can fulfill quick delivery promises.

   → Six months ago, we warned that competition around real estate could lead to rent increases and the need to raise more capital. Certain areas within London expect to see a 7% increase in rent for industrial assets this year (4).

2. 2. A match made in heaven?

   → Startups including Cajoo, Flink and Gorillas have signed strategic partnerships to source (some of) their products from supermarkets.

   → By having access to supermarkets’ buying power, startups are able to offer quality products at decent prices. In some cases, they can also benefit from supermarket logistics networks to deliver goods to their own hubs.

3. 3. Standing out from the crowd

   → In a crowded market, the pressure is on newcomers to distinguish themselves. Some are targeting niche customer segments, for example by focusing on specific ethnic foods or zero-waste deliveries.

   → Meanwhile, existing startups are pursuing exclusive partnerships with big and local brands alike, as well as developing new product lines in-house.

4. 4. The food empires strike back

   → Food delivery startups like Deliveroo and Glovo have been ramping up efforts to join the grocery delivery race in the hope that customers ordering groceries via their platforms will also increasingly use them for food delivery orders, and vice versa.

   → These companies are facing lower customer acquisition costs and can draw on existing courier networks, but they too need to figure out logistics and challenges specific to the grocery sector.

Europe's leading pre-Series A startups (all published data verified)

Who early stage startups are up against