The Food Retail Experts

Sign up to receive our Analyst Views

 
 

Tesco Trials One Hour Deliveries

Tesco is piloting a one-hour grocery delivery service in London with a new Tesco Now mobile app. Shoppers can order up to 20 items and currently delivery is free within the area where the service operates. Tesco has partnered with cycle courier company Quiqup for the service, which focuses on a selection of everyday items such as those available in a Tesco Express store, according to LatestDeals. Only shoppers that install the trial version of the app can currently use the service.  


Opinion

The Amazon Effect

Tesco is the latest retailer to jump onto the one-hour grocery delivery bandwagon, or at least to test it. Sainsbury’s has been trialling a similar one-hour Chop Chop service, delivering up to 25 items by bicycle courier to London postcodes within 3km of its stores since last September. Tesco Now is currently free to use, but that is no doubt whilst it remains in beta. Sainsbury’s charges GBP4.99 (EUR6.09) for shoppers to use its one-hour service, a relatively high fee that goes some way to addressing the profitability concerns of offering such a scheme.

It appears that more rapid delivery services are springing up all the time and the reason for this is clear – shopper needs and expectations are changing. And they are being reset by the ever-faster and ever-more-convenient service provided by Amazon with its PrimeNow and Amazon Fresh operations. According to Brandview, 55% of UK shoppers now start their product searches on Amazon and the company, which sees rapid delivery as its future, is exploiting the opportunity to deliver online impulse and setting the bar high in terms of shopper expectations. Amazon will continue to lead in this area, but whilst there are companies that can partner with traditional retailers and shoppers that are willing to pay for the service, we expect this to be a growing opportunity to drive impulse spending in urban areas.

Topics: Tesco