Sacra Logo

What are the key determinants of a company's ability to scale their operations, given the hyper-local nature of the on-demand grocery industry?


Ex-head of strategy at on-demand giant

Guest: It's down to the team, that's actually doing it. So these companies have expansion teams. Build these businesses and the playbook, the best practices, and they use that to market and get people on local center. It doesn't cost a lot of money to set up a single it's about a hundred thousand pound investment to set up a single dark store. 

I think it's down to the success of how many people are in that catchment area. What kind of an audience that looks like; What kind of marketing they're doing the variable to acquire customers cheaply and retain them. I'm guessing, in the end, it's going to become a consolidation phase and maybe Getir is strong in the north of London, but it's not in the south of London. So they might sell those fulfillment centers to somebody else. That consolidation phase on a city level would start to come in, maybe they would just shut those centers down. I don't think these guys are going to compete and swap centers at this point. It's more likely that they will shut one down because it's not a huge cost.

Find this answer in Former head of strategy at a global on-demand giant on the economics of grocery delivery
lightningbolt_icon Unlocked Report