Deliveroo encouraged to seek more partners by Hop grocery trial

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LONDON, Nov 17 (Businesshala) – Deliveroo (ROOL) has seen a “really encouraging” response to its Deliveroo Hop dark-store rapid grocery trial, and said it will explore more partnerships with retailers using the model .

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Deliveroo said in September that it was working with British supermarket conglomerate Morrisons, one of its existing partners, to offer 1,500 to 2,000 SKUs (stock keeping units) from a site in London.

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Chief Executive Officer Will Schu said Wednesday that Deliveroo Hop was achieving an average delivery time of 11 minutes.

He told Morgan Stanley, “We’ve seen early type numbers on retention and frequency, although it’s been about two months, has been really encouraging, so we’ll be looking to explore more and more partnerships with different grocers on this model.” European Technology, Media and Telecommunications Conference.

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The fast-growing grocery delivery sector has snowballed into major cities like London over the past 12 months, with companies like Getir, Weezy and Gorilla battling to deliver orders.

Deliveroo began offering grocery delivery about three years ago, initially in partnership with Retailer Co-op, using a model whereby the retailer picks up and packs orders into their stores and Deliveroo’s riders send them to 20- Deliver in 25 mins.

It has since partnered with other major retailers, including Waitrose, Morrisons, Sainsbury’s and Aldi in the UK, and Carrefour in France, Italy and Belgium.

However, Shu said the dark store model was compelling for a number of reasons, including better inventory accuracy than high street stores and faster delivery.

“We had almost no stock outs or replacements, which I think was the important thing,” he said.

Reporting by Paul Sandals; Editing by Alexander Smith

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