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Global Online Groceries Market Report 2020 Featuring Ocado Zoom, Waitrose, Sainsbury's, Instacart, Amazon, just-eat, Deliveroo, Uber Eats, Doordash, Delivery Hero, & Glovo

·8 min read

DUBLIN, Jan. 25, 2021 /PRNewswire/ -- The "The Future Of Online Groceries - Ultra Fast Convenience 2020" report has been added to ResearchAndMarkets.com's offering.

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As online penetration rates remain high and are increasing especially in the areas which suffer new national or regional lockdowns, as we enter the second and third Covid waves in the West, online grocery is being transformed.

The big multichannel grocers have or are working on their big basket solutions, be they home delivery or click & collect. But there is another basket size that is not yet served well, which is the convenience shop type - often distressed shopping late at night (OTC medicines for example) or ingredient substitution, etc. This is the new growth frontier in online grocery - ultra-fast convenience deliveries. This report analyses the grocery offerings, rather than restaurant takeaway deliveries, as the restaurant delivery app players with their logistics networks are all muscling in on this space now.

If one dares to look at a future beyond Covid-19, there should be a big future opportunity for small baskets, according to Tesco a 10bn opportunity in the UK, or in other words about 4/5 of the entire online grocery sector as it stands. And in any other markets, the opportunity will be as promising.

But as Amazon has demonstrated over the years with their relatively small average basket sizes in online grocery, this is really hard to make work financially. The commissioning and delivery cost will eat up all the available margin, especially as food transaction baskets are not that high value. But at least Amazon changes a Prime fee for rapid deliveries (PrimeNow and now AmazonFresh free on regular Prime membership in the US and the UK) and has a minimum basket (otherwise extra fees apply). As an aside, Amazon also manages to mix food and higher non-food margins much better in these baskets due to it being the everything store.

Then again, there seems to be a sector that manages two make these ultra-fast deliveries work up to a point. Restaurants can do it apparently, serving food baskets rapidly (to keep the meals hot) and are being convenient and have trained customers to be willing to pay fees (service/ delivery fee for rapid delivery). The point that most of the aggregator services (Deliveroo, Uber Eats, etc) are still loss-making is a different matter.

There is an opportunity to exploit for grocers they should be able to raise network synergy effects if they combine all food requirements and offers on one app and on one delivery vehicle (at the moment this is still a future opportunity, even though some Chinese companies are on their way to achieving this). Naturally besides attracting new shoppers and shopping missions adding a point-to-point delivery system where this makes sense will also alleviate the operative burden on grocers' online grocery operations.

One can ask the question of whether companies can make money with network effects on a point to point delivery run (restaurant to household), especially with such small time windows. A related question is how many orders can operators reasonably expect to batch within the tight time frame for hot meal deliveries. The UK's Deliveroo works with 3 drops an hour which are very good, but probably at the maximum end of efficiency for a point to point system.

So where is ultra-fast online grocery going in the future? The publisher believes that there will be a demand created by online grocers, logistics marketplaces, and takeaway apps due to their current offers. Arguably due to the Covid pandemic, many retailers panicked into delivery partnerships to reach shoppers unable to get to their stores. But the publisher believes that these services can not easily be withdrawn, as shoppers have transferred expectations about delivery times and capabilities from hot takeaway deals to their groceries.

Currently, online grocery retailers are not set up to meet this demand on their own, as their logistics network is optimized for the next day (or later) deliveries. That said, once shoppers have been trained to have higher expectations, the retailers able to meet them in conjunction with a service provider or through their own (future) proprietary set up will emerge as the winners.

This means that the pressure on being ultra-fast will only increase for retailers going forward. Online grocers working with next day delivery could soon become laggards, even though same-day capabilities are quite cutting edge still as we are writing this.

Tapping into new delivery and logistics models, such as the takeaway apps, seems to be an enticing option for grocers. Not for nothing have Amazon invested in Deliveroo after all. The company is building out its amazing logistics footprint, even more, becoming increasingly more the pipe through which everything flows.

Other outside developments such as the upgrading of the infrastructure (5G) will also mean that everything is becoming faster and faster, and faster online grocery fits in with this trend. But where there are winners there are also losers. Gig economy employment is unstable and the environmental impact could also become a huge topic if cities are swamped with delivery drivers at all times of the day and night.

Key Topics Covered:

1. Executive Summary

2. The Structure of the Market

  • Market Structure: Traditional Online Grocery Versus Ultra Fast Convenience

  • Market Structure: The Players

  • Market Structure: Hot Food Expectations Transferred to Grocery

  • Market Structure: Point to Point Versus Hub and Spoke

  • Market Structure: The Logistic Networks of the Takeaway Apps

3. Market Sizes

  • Market Sizes: Online Grocery, UK Market Sizes, Data

  • Market Sizes: Ultra Fast Online Grocery Market Sizes UK

  • Market Sizes: Food Delivery Market Sizes

  • Market Sizes: Takeaway Delivery Market Sizes - Data, EU$

  • App Usage Stats: Takeaway Delivery Apps, Us and UK

  • Takeaway Delivery Top 3: UK and US

4. The Players

  • Ocado Zoom: Stronger Than Expected

  • Waitrose Rapid: Maximum Basket Size of 25 Items

  • Sainsbury's Chop Chop: 50 Stores by 2020

  • Instacart: On-Demand Delivery Partnership with 7-Eleven

  • Instacart: on the Way to Super Fast Deliveries

  • Amazon Prime Now: Not Fast Enough Anymore

  • Amazon: The Deliveroo Investment

  • Amazon: The New Ultra Fast Fresh Service

  • Amazon: Fresh Becomes a Prime Benefit

5. The Takeaway App Models

  • The Model: Platform Versus Logistics Service Model

  • The Model: Amazon Versus eBay in Foodservice?

  • The Model: A Convergence of Models at a Cost

  • Just Eat Takeaway

  • Just Eat: The Decision to Offer Logistics

  • Just Eat: The Need to Offer Logistics Solutions

  • Just Eat: Groceries Offer in Trial Phase

  • Just Eat: Asda Partnership Temporarily on Hold

  • Just Eat: Just Eat Takeaway Combines with Grubhub in $7.3Bn Deal

  • Just Eat: 44% Revenue Rise in the Midst of the Pandemic

  • Deliveroo

  • Deliveroo: The Fastest Growing Company, Unicorn Getting into Trouble

  • Deliveroo: Revenue, Losses, Data, the Amazon Tie Up

  • Deliveroo: Analysis, Dark Kitchens

  • Deliveroo: Adding Groceries - Morrisons

  • Deliveroo: Adding Groceries - Coop

  • Deliveroo: Adding Groceries - Aldi

  • Deliveroo: Adding Groceries - Holland & Barrett

  • Deliveroo: Adding Groceries - Waitrose

  • Deliveroo: Adding Groceries - Losing M&S

  • Uber Eats

  • Uber: Uber Strikes Deal to Buy Postmates for $2.65Bn

  • Uber: Uber Going for the Grocery Business

  • Uber: Postmates as a White Label Solution for Grocers

  • Uber: Net Revenue ($Bn) Rides, Eats, Freight, Other

  • Uber: Cornershop, Being Faster Than Amazon

  • Uber Eats: The Evolution

  • Uber Eats: Moving into Grocery, Carrefour, Galp

  • Uber Eats: Costcutter Groceries in the UK

  • Uber Eats: Adding Groceries in Australia, Woolworths

  • Uber Eats: Adding Groceries in the US

  • Doordash

  • Doordash: Softbank-Backed Doordash Files for Ipo

  • Doordash: Extending the Grocery Offer

  • Doordash: Launches "Convenience Store", Backed by Mfc

  • Delivery Hero

  • Delivery Hero: Delivery Hero Hungry for Scale as It Shakes Up the Dax

  • Delivery Hero: Picks Up Instashop in $360M Deal to Expand in Groceries

  • Delivery Hero: Plans to Open 400 Cloud Stores

  • Glovo

  • Glovo: A Grocery Pioneer, Plans for 100 Dark Stores

  • Glovo: Carrefour Partnership

  • Glovo: Focus on Grocery Delivery and Superglovo

6. Strategy

  • Strategy: How to Bring Costs Down

  • Self Driving Cars: Not Happening?

  • Self Driving Cars: Shifting from Robo Taxis to Trucks

  • Self Driving Cars: Focus on Highways

  • Dark Kitchens: The Pros, Lower Costs, Flexibility, Bigger Catchments

  • Dark Kitchens: and Cons, Control, Brand Building, Bad Rep

  • Dark Kitchens: Prototypes, Shared Space Vs Single User

  • Dark Kitchens: Business Case to Become Grocery Mfc?

7. Outlook

  • Outlook: The Case for Ultra Fast Online Grocery

Companies Mentioned

  • 7-Eleven

  • Aldi

  • Amazon

  • Carrefour

  • Coop

  • Deliveroo

  • Delivery Hero

  • Doordash

  • Ebay

  • Galp

  • Glovo

  • Grubhub

  • Holland & Barrett

  • Instacart

  • Just Eat

  • M&S

  • MFC

  • Morrisons

  • Ocado Zoom

  • Postmates

  • Sainsbury's

  • Uber Eats

  • Waitrose

  • Woolworths

For more information about this report visit https://www.researchandmarkets.com/r/48nvlf

Research and Markets also offers Custom Research services providing focused, comprehensive and tailored research.

Media Contact:

Research and Markets
Laura Wood, Senior Manager
press@researchandmarkets.com

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View original content:http://www.prnewswire.com/news-releases/global-online-groceries-market-report-2020-featuring-ocado-zoom-waitrose-sainsburys-instacart-amazon-just-eat-deliveroo-uber-eats-doordash-delivery-hero--glovo-301213872.html

SOURCE Research and Markets

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    Up more than 1,150% in the past year, Chinese electric-vehicle maker NIO (NIO) turned into one of the best-performing stocks of 2020 -- but one analyst thinks there are more gains to come. Initiating coverage on the "epitome of Chinese luxury brand[s]" and "domestic leader in EV manufacturing," Nomura analyst Martin Heung argues that even after its steep run-up, Nio stock remains a "buy" and has at least another 30% to run (above Friday's closing share price of $61.95). So why does Heung like Nio? In one word: Growth. And in another word: Batteries. On the growth front, Heung observes that EV-friendly infrastructure in China is improving, encouraging more car buyers to make the leap to electrics. "Conservatively," says the analyst, by as early as 2025 16.5% of new cars sold in the Middle Kingdom should be electrics, which implies an overall 31% annual sales growth rate for the industry (and probably a faster growth rate for leaders like Nio). Additionally, at some point electrics should reach critical mass (Heung estimates this will happen at 20% market penetration), which will convince even more car buyers to transition to electrics -- accelerating sales growth further. Helping Nio to maintain a market-leading position in China will be its "batteries as a service" (BaaS) business model, in which Nio sells cars to customers, leases the batteries to run those cars -- and then offers customers the ability to swap out their current batteries for new, fully-charged batteries as a faster alternative to charging the batteries. "By improving swapping time to only three minutes" and by placing such battery swapping stations throughout "most parts of the major cities in China, NIO hopes to redefine the whole user experience of owning an EV," says Heung. Swappable batteries, notes the analyst, helps to eliminate customers' range anxiety at the same time as it reduces wait times at charging stations, improving the customer experience in two different ways. Additionally, when arguably the most expensive and most important part of an electric car -- the battery -- is removed from the equation, customers will no longer need to worry about whether an aged car battery might reduce the resale value of their cars years down the road, removing yet another impediment to making a sale. In this way, Nio's BaaS strategy also helps to differentiate Nio's offerings, and builds a moat around the business. Widening and deepening that moat even further (to steal a phrase from Warren Buffett), Nio is encouraging customers to sign up for long-term, five-year battery leases in exchange for a lower cost per year -- essentially locking customers into its ecosystem for the lease term. All of the above, says Heung, positions Nio to become "the dominant power in China," in electric vehicles, at a time when EV adoption is surging, says the analyst. Even valuing the stock at a 25% discount to the prices investors are paying for its highest profile US rival, Tesla (on a price-to-sales basis), Heung feels these factors justify placing an $80.30 price target on Nio stock. So, that’s Nomura's view. Let’s have a look at what the rest of the Street has in mind for NIO shares. Based on 8 Buys and 6 Holds, the analyst consensus is a Moderate Buy. However, going by the $59.40 average price target, shares are anticipated to be changing hands at a 4% discount. (See NIO stock analysis on TipRanks) To find good ideas for EV stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights. Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

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  • Cleveland-Cliffs stock soars after upbeat revenue outlook

    Shares of Cleveland-Cliffs Inc. surged 9.4% in premarket trading Monday, after the steel maker provided an upbeat preliminary fourth-quarter outlook. The company said it expects to report revenue of $2.2 billion to $2.3 billion, up about 320% from a year ago, and well above the FactSet consensus of $1.97 billion. Steel sales volume for the quarter is expected to be 1.9 million net tons. The company expects to report full fourth-quarter results on Feb. 25. "We ended 2020 on a particularly high note," said Chief Executive Lourenco Goncalves. "With the backdrop of a resilient steel pricing environment and the growing number of steel companies competing for an increasingly scarce scrap supply in 2021 and beyond, Cleveland-Cliffs will continue to benefit from our differentiated business model with self-sufficiency in pellets and HBI. The stock has run up 89.2% over the past three months through Friday, while the S&P 500 has gained 10.9%.

  • Tencent’s $251 Billion Rally Triggers Frenzy in Shares, Options

    (Bloomberg) -- Hong Kong’s equity traders can’t get enough of Tencent Holdings Ltd., the $950 billion giant that’s on pace for its biggest ever monthly gain.They’re paying up for bullish derivatives tracking the Chinese internet firm, buying thousands of January call options that expire Thursday. The price of one Tencent contract -- which bets the stock will rise past HK$800 by expiry -- surged as much as 118,300% on Monday. Traders also rushed to offload their bearish puts, with one of the most-traded contracts losing more than 84% in value.The stock rallied 11% on Monday to HK$766.50, its biggest gain since October 2011. Hong Kong’s Hang Seng Index benchmark rose 2.4%, closing above the key 30,000 point-level for the first time since May 2019.Tencent has become a prime target for mainland traders flooding record amounts of cash into Hong Kong-listed shares this year, with net purchase of the stock accounting for roughly a quarter of total money coming in, according to exchange data. The buying frenzy has also boosted Tencent’s market value by about $251 billion this year, the most worldwide, according to data compiled by Bloomberg. Tesla Inc. is the second-largest gainer, up $134 billion.Tencent shares now trade at nearly 40 times analysts’ estimated earnings for the next 12 months. While that’s well above the average of 30 since Bloomberg began tracking the data in 2005, it’s still below the recent peak multiple of 42 reached in 2014 and 2018. It reached 65 at the height of China’s equity bubble in 2007.On Monday, analysts at Citigroup Inc. lifted their target price on the firm by 19% to HK$876, the highest among analysts tracked by Bloomberg, citing the company’s market-share expansion and growth in the gaming sector and other digital businesses.Tencent is also getting an additional boost from taking part in the city’s fast-growing initial public offering market. Kuaishou Technology, backed by Tencent, is seeking to raise as much as $5.4 billion in Hong Kong in what would be the biggest internet IPO since Uber Technologies Inc.With the recent run-up, Tencent is trading at its highest price on record. It’s largely avoided the tightening regulatory oversight that sparked a selloff in rival Alibaba Group Holding Ltd. and forced its part-owned Ant Group Co. to jettison a record IPO.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

  • Wingcopter raises $22 million to expand to the U.S. and launch a next-generation drone

    German drone technology startup Wingcopter has raised a $22 million Series A – its first significant venture capital raise after mostly bootstrapping. The company, which focuses on drone delivery, has come a long way since its founding in 2017, having developed, built and flown its Wingcopter 178 heavy-lift cargo delivery drone using its proprietary and patented tilt-rotor propellant mechanism, which combines all the benefits of vertical take-off and landing with the advantages of fixed-wing aircraft for longer distance horizontal flight. Wingcopter CEO and founder Tom Plümmer explained to the in an interview that the addition of an SV-based investor is particularly important to the startup, since it's in the process of preparing its entry into the U.S., with plans for an American facility, both for flight testing to satisfy FAA requirements for operational certification, as well as eventually for U.S.-based drone production.

  • Here's How Much Investing $1,000 In Intel Stock 5 Years Ago Would Be Worth Today

    Investors who have owned stocks since 2016 generally have experienced some big gains. In fact, the SPDR S&P 500 (NYSE: SPY) total return in the past five years is 120.4%. But there is no question some big-name stocks performed better than others along the way.A Big Run: Intel Corporation (NASDAQ: INTC) has had a bumpy ride since 2016. But despite lots of struggles along the way, Intel investors have gotten some decent overall returns.The rise of smartphones, online gaming, cloud computing, cryptocurrency and other innovations created a boom in semiconductor demand over the past decade. Unfortunately for Intel, innovation missteps and production delays led to missed opportunities for company in the past five years.Throughout 2018 and 2019, Intel was unable to produce enough CPUs to supply its customers, essentially turning over market share to rival Advanced Micro Devices, Inc. (NASDAQ: AMD) and others for free. In 2020, Intel said chip manufacturing issues would once again be delaying production of its 7-nanometer chips, and the company may be forced to rely on third-party manufacturers for the first time.At the beginning of 2016, Intel shares were trading at around $34. The stock hit its low point of the past five years in mid-2016, dipping down to $24.87.From that point, the stock steadily churned higher over the next several years, reaching $50 in early 2018 and $60 for the first time in early 2020.Related Link: Here's How Much Investing ,000 In Morgan Stanley Stock 5 Years Ago Would Be Worth TodayIntel In 2021, Beyond: Intel peaked at $59.29 prior to the COVID-19 pandemic sell-off, which pushed the stock back down to $43.63 in March. Intel revisited its 2020 lows again in late October, but skyrocketed back up to above $57 per share in January after the company announced a new CEO, Pat Gelsinger.Investors who had no knowledge of the massive gains from semiconductor peers like AMD in the past five years would be fairly satisfied with their Intel returns.Intel investors that bought and held on through a volatile five-year period turned a significant profit. In fact, $1,000 worth of Intel stock bought in 2016 would be worth about $2,408 today, assuming reinvested dividends.Looking ahead, analysts expect Intel to grind higher in the next 12 months. The average price target among the 33 analysts covering the stock is $60, suggesting only 4.5% upside from current levels.(Photo: Walden Kirsch/Intel Corporation)See more from Benzinga * Click here for options trades from Benzinga * Option Trader Bets M On Advanced Micro Devices Following CES Presentation(C) 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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