RE: Shopping delivered in 10 minutes.23 Apr 2021 11:06
Tight margin or loss making, it's all about gaining market share for these ultra fast delivery models. There is a gap in the market there though. I downloaded the Gorrilas app. Impressive, low delivery fee, prices compare to a convenience shop. Deliveries are only in some areas of London.
It is more competition for Ocado Zoom. I can't see Ocado retail wanting to bring out a Mega Zoom service 15 mins or under. The Ocado Zoom app is more impressive though, wider product range, cheaper prices. All backed up by the standard Ocado differentials, v low substitution, ultra low wastage, superb delivery customer service, easy refunds if issues etc.
This emergence of ultra fast delivery I see as another opportunity for Ocado Solutions arm. All of these companies would be greatly enhanced by Ocado's best in class food handling robotics and Ai. There will be a point where they have market share and then need more automation to become profitable.
The more food that's ordered online the more opportunity for Ocado Solutions to grow...