Rapid Groceries | 10-minute Window Deliveries

Grocery Guru Episode #30: The Rise of Rapid Groceries

Join Andrew Grant and Darren A. Smith in the thirtieth episode of the Grocery Guru. They discuss Rapid Groceries - The Rise of 10-minute Window Deliveries by 8 Start-Ups. Plus, the moves by Tesco and Sainsbury's with 'Whoosh' and 'Chop-Chop', to compete.

You Can Read the Rapid Groceries Episode Transcript Below:

Darren A. Smith:

Hello, and welcome to Episode 30 of the Grocery Guru. We're here with our guru, which is Andrew Grant. Andrew, how are you?

Andrew Grant:

Morning, Darren. Happy, happy new week.

Darren A. Smith:

Yes. A new week twice. We've just had a bank holiday. Andrew, what's in the press at the moment around the world of grocery?

Andrew Grant:

Well, let me throw some words at you, Darren. See if they spark anything. Gorillas, fancy, wheezy, deja, zap.

Darren A. Smith:

Is that them calling?

Andrew Grant:

Jiffy. It was them calling, yeah. Zap, jiffy, deja, wheezy, gorillas, get here.

Darren A. Smith:

Okay. So what's in my mind is animals with asthma.

Andrew Grant:

Oh, okay. Aren't they all plays on fast, nippy, quick? I think that's what they're supposed to conjure up. But yeah, the world of rapid groceries.

Darren A. Smith:

Oh, okay. So we talked about this a few episodes ago, around there was one that Justin King had put some money into. Am I right?

Andrew Grant:

Snappy.

Darren A. Smith:

Snappy, right? Remember. Yeah, cool.

Andrew Grant:

I know a couple of weeks ago you were gently chiding me about getting a prediction wrong about Jack's stores and Tesco Metros.

Darren A. Smith:

I certainly was.

Andrew Grant:

But I'm quite pleased that I picked up this trend, I don't know how many episodes ago, and all of a sudden it's like double feature in the Sunday Times.

Darren A. Smith:

Oh, okay. Okay. Yeah, you picked up on snappy and Justin King made an investment, I think of a hundred thousand pounds, and we talked about short windows, weren't we? Narrow windows.

Andrew Grant:

Yeah. But the crazy thing is 19 billion of venture startup money has gone into these businesses in the last five years.

Darren A. Smith:

Wow.

Andrew Grant:

This blew my mind away. Have you any idea? You used to work there. What's the market capitalization of Sainsbury's?

Darren A. Smith:

Gosh. Now you're asking.

Andrew Grant:

I know.

Darren A. Smith:

It's start of the week. No idea.

Andrew Grant:

Okay, it's 5.9 billion.

Darren A. Smith:

Oh, okay. I was going to say 12. I don't know why 12. All right.

Andrew Grant:

Okay. Share price times the number of shares, basically what the business is worth.

Darren A. Smith:

Yeah, it's expected. Okay.

Andrew Grant:

Gopuff, which is a American rapid delivery service, just arriving in this country. What do you think their market capitalization is?

Darren A. Smith:

Oh, I don't know. But they sound like they're new. They sound like they're not worth much. 10 million.

Andrew Grant:

Well, 6.3 billion. So bigger than Sainsbury's. More valuable than Sainsbury's.

Darren A. Smith:

Wow.

Andrew Grant:

GetHere, that's already over here, five billion. Morrisons is only 4.3. So these businesses, literally only just starting, are worth more than our second and fourth biggest supermarket chains.

Darren A. Smith:

Wow. So let me just get this right. These start up speedy delivery companies have a worth at the market. The stock market believes these things will be worth more than Morrisons and Sainsbury's.

Andrew Grant:

Are worth more [crosstalk 00:03:07].

Darren A. Smith: