Food stores there's a new competitor in the food delivery services

Couriers Delivery Club and “Yandex.Food” in bright uniforms became regulars in the streets of Moscow, and online food delivery services has attracted large investors and the savings of the founder of the developer PEAK Sergey Gordeev. According to GfK, in Moscow and St. Petersburg over the past year, 26% and 20% respectively of households bought groceries online. In Russia the figure is much lower, at 7%, but this figure includes the rural population.

Come down to the fact that the food network seriously began to consider the food delivery services of their competitors. The consumer does not choose between the shop and café, said in an interview with “Vedomosti” CEO of X5 Retail Group Igor Shekhterman: “He chooses, as he is more efficient and faster at a particular moment to provide themselves with food.”

the greatest network too long ago look to trade via the Internet. The same X5 tried several times to organize the sale and started the “Intersection line”, “Magnet” tested the online orders and delivery of partnership services. “Auchan” has long develop the online store with non-food range, etc. next year, Auchan will begin online sales of fresh produce and promises to the sales Director of e-Commerce “Auchan retail Russia” Ismael Germain. X5 in the autumn announced that its strategy to 2029 to 50% of the company’s revenues will bring digital channels, up to 20% of new businesses, from food delivery to parcel terminals and services that do not yet exist. The sale of food – the fastest growing trend in online Commerce, they face a great future investment is absolutely justified, says the representative of the X5.

Main asset X5 “Crossroads online”. In January – September 2019 the number of orders increased more than fourfold – more than 860 000 purchases and buyers who made more than one order, five times and exceeded 280,000 people, is the representative of the X5. 79% of orders – re. “Men solve several problems at once: get access to a huge range, don’t waste time in queues and the road, do not carry heavy packages” – lists the representative of the retailer.

“Magnet”, though, and tests the delivery through the service iGooods is not active. “We carefully look at the online market, exploring job options,” – said the member of the management Board, Director for investments of “Magnet” Andrew Bodrov. New players in this field prevents low efficiency of the business at the current stage of market development, he said: “the Price of logistics and the density of orders – the main problems that prevent today to build efficient and profitable operating model with an acceptable return on capital.” While buying products on the Internet interesting audience with incomes above the average, says Bodrov.

Managing service iGooods Grigory kunis with this thesis disagrees: in his opinion, the delivery is used by people with average income. He does not consider the income of the population barrier. A significant proportion of customers iGooods – retired, says kunis. For them the decisive factor is the opportunity not to carry them by gravity, even though they are buying a little. The family of five spends on food 3000-4000 rubles a week, even with a very limited income. This is the average order from iGooods, says kunis. So, even these people could use the food delivery service, he says. The middle class actively orders online, as it sees the economy: no impulse buying, shipping cheap, says managing iGooods.

food delivery has a massive service, the representative Delivery Club: people no longer delivered only to the event, for some it became a way for daily nutrition. He pointed out that the orders have become more uniform and peaks in the evenings and on the weekend smoothed. Also, a growing number of orders on the person, I usually buy home-cooked meals, Georgian Iland Italian cuisine. Also the representative of Club Delivery indicates that the major partners of the service network of fast food restaurants oriented to the mass market.

But with increasing mass of services and changing customer behaviour – consumption becomes more spontaneous and impulsive, said earlier “Vedomosti” head FoodTech-direction “Yandex.Taxi” Maxim Firsov. For the year greatly reduced the expected time of delivery, consumers “was very sensitive” to offer “Yandex.Shop” to deliver within 15 minutes, he said.

the Big players also go into Express delivery. In 2019, the X5 started to test this service for 10 “Crossroads” and 15 “Fives”. To scale the project, X5 will be decided after evaluation of the results. But, for example, in a “roundabout” good demand for Express delivery, said a representative of X5, on average, twice a week.

“Carmarket” in the short term wants to make the delivery free, said managing Director of “Spermaceti” (previously Instamart) Asan Kurmanguzhin: “A significant proportion of the products to 3-5% range, the task is to make the price online is lower than offline”. This, he said, can be achieved by working with the brands of the products: “They now give personalized discounts to customers on our platform”.

the Next 3-4 years in delivery of products will be “change comparable to the explosive growth of the taxi market a few years ago,” anticipates Kurmanguzhin. The share of online sales on the food market, he predicted, will reach 5-10%. Now, according to GfK, online accounts for only 2% of sales of the goods of daily demand.

“in our country is well-developed retail trade, large and small shops, it is with them, not with hypermarkets to compete in food, online retail,” adds representativetel X5.