'The economics are brutal' for rapid delivery grocery start-ups

The WSJ: Losses mount for startups racing to deliver groceries fast and cheap

We’ve always thought that ‘the economics are brutal’ for rapid delivery services.

Distance is expensive, as is sourcing dedicated distribution space close to customers. In the UK the established grocery operators can service consumers more efficiently. They have an established product range, and their vast network of large format omnichannel stores serves a wider population of short 15-minute catchments.

In the US it seems that despite the waves of rapid delivery start-ups, competing to deliver groceries within 10 to 20 minutes, delivering a profit for investors is proving elusive.

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