- Sainsbury’s launches same-day delivery
- Service will be available at 175 locations by end of February
- Just Eat’s second tie-up with a UK ‘big four’ supermarket
Supermarket giant Sainsbury’s (SBRY) is teaming up with Just Eat Takeaway.com (JET) under a UK grocery deliveries partnership that will enable Sainsbury’s customers to order more than 3,000 products through the Just Eat app and have a courier speedily deliver the goods to their door.
The partnership will launch with more than 175 Sainsbury’s stores by the end of February in locations such as London, Edinburgh and Bristol, and Just Eat plans to roll the service out to ‘many more cities across 2023’.
TWICE AS FAST AS WHOOSH
Supermarkets continue to look for new ways to shift products and rapid delivery has been on the menu for many players in recent years.
Always trying to go one better than its grocery rivals, FTSE 100 retailer Sainsbury’s is now launching same-day delivery in less than 30 minutes - effectively twice as fast as Tesco’s (TSCO) Whoosh service.
As a result of the contract, Just Eat customers will have access to thousands of products for delivery via the platform, ranging from fresh milk and vegetables to household essentials and including Sainsbury’s own brand lines.
Just Eat, which aims to deliver from Sainsbury’s to customers in under 30 minutes, said that on-demand grocery deliveries are growing in popularity around the globe and that it is committed to expanding its grocery options.
As Britain’s biggest food delivery platform, Just Eat already reaches 97% of all UK postcodes and partners with more than 30,000 grocery and convenience stories around the world through tie-ups with Sainsbury’s ‘big four’ rival ASDA as well as the likes of Spar, 7-Eleven, Shell and Getir.
Just Eat stressed that with over 2,000 grocery sites already on the platform, the Sainsbury’s deal ‘marks a significant step in Just Eat’s plan to expand its grocery offer even further and to give customers the greatest choice and convenience.’
Sainsbury’s shares extended their recent rally on the news, rising 1% to 243.3p, although shares in Just Eat Takeaway cheapened 2.8% to £21.25.
THE EXPERT’S VIEW
AJ Bell investment director Russ Mould commented: ‘Using Just Eat’s network of delivery drivers, the service will initially focus on large cities. It’s targeting people who are either time poor or just can’t be bothered to walk up to their nearest convenience store.
‘While there is a market for this service, plenty of other supermarkets are already offering the same thing including the Co-op. Morrisons even aspires to have its products delivered within 15 to 20 minutes so Sainsbury’s can’t even lay claim to being the fastest.’
Mould added: ‘For all the supermarkets, using a third-party delivery service makes life easier but it still takes time for staff to pick the products from the shelf. If someone is only ordering a pint of milk and a loaf of bread, is that really the best use of the supermarket worker’s time walking around the store filling small bags?
‘Sainsbury’s might argue that not being part of the rapid delivery movement puts it at a disadvantage so it cannot afford to stay on the sidelines.’
Disclaimer: Financial services company AJ Bell referenced in the article owns Shares magazine. The author of the article (James Crux) and the editor of the article (Ian Conway) own shares in AJ Bell.
