Gorillas teams up with Tesco as grocery delivery battle rages
Rapid grocery delivery startup Gorillas previously described national supermarkets as the biggest competition it faces. But in the frantic battle for post-pandemic growth, it’s inked a major partnership with Tesco.
“We see traditional retailers as our competition,” Gorillas’ head of brand Danny Barry told The Drum earlier this year. He said: “Ultimately our business can offer something drastically different to their existing way of shopping. We’re changing people’s habits from being a big weekly shop to more mindful, smaller trips where they’re not wasting food and it’s more convenient. Our competitor set is the convenient versions of Tesco or Sainsbury’s.”
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Gorillas has inked a distribution deal with Tesco
But in a category that experienced hypergrowth during the pandemic, as shopping habits return to normal the key players are seeking growth from elsewhere to ensure they’re left standing when investment begins to slow.
“Only a few will remain at the end,” Barry said of the battle among it and the likes of Getir, Weezy, GoPuff and Dija. For Gorillas, the deal with Tesco ensures it can continue to acquire new customers from the retailer’s vast base.
The pair will establish co-located warehouses within each Tesco store, utilizing the existing Gorillas business model of micro-fulfillment centers to enable the delivery of groceries within minutes for their combined customer base.
“The co-location partnership enables both brands to bring their strengths to the table and establish a quicker, higher-quality grocery offering to UK consumers,” added Adrian Frenzel, chief operating officer at Gorillas.
“Customers will not only be able to get the best of Tesco within minutes via Gorillas, but will be able to make the most of Tesco’s extraordinary quality range via the Gorillas app.”
The pilot will start in Thornton Heath, Greater London, before being expanded to additional locations in the coming months.
This is the first brand partnership between a quick commerce company and grocery retailer to include co-located physical warehouses within existing retail stores.