The delivery service has become one of the largest services of the US economy due to the Covid-19 pandemic. With shops shut globally, most of the US population has been ordered to take shelter in their homes. Due to this, many grocery delivery providers and restaurants now rely on takeout orders and delivery services availed by their home-bound customers.
Millions of people globally are forced to stay at home to avoid contracting Covid-19. Food, grocery and other delivery services have witnessed an unprecedented boom during this period. The security concern of people has increased the demand for online delivery services. People prefer to order groceries and other essentials such as milk, eggs, fruits, etc. from delivery companies to get it delivered at their doorstep as soon as possible.
Grocery delivery services have boomed in Russia, reflecting a global trend that has seen similar brand-winning consumers in Europe and the US. Around $14 billion has been invested in the grocery delivery service worldwide since 2020. In the US alone, online grocery sales increased by 22% due to national Covid-19 lockdowns. In a survey of 1,152 buyers, online grocery sales reportedly increased by 40%; 52% had purchased groceries online during the last 12 months.
This figure represents that online sales have doubled the number of buyers in the last two years. Ecommerce value was around 2.6% of food sales in 2019, but in 2020, the projected growth in online grocery activities raised by 3.5%, which is around $38 billion. Online grocery consumers are purchasing items from retails online. In 2020, customers preferred to buy from an average of five to six categories online, compared to 4.4% during last year.
Among e-grocery retailers, Amazon was leading. During the survey, it was discovered that more than 62.6% of customers bought groceries online from Amazon, compared to 52.3% from Walmart, while 22.9% purchased from Target, 15.2% from Costco Wholesale, and 13.2% from Whole Foods Market. (Source)
Online shopping witnessed an explosive growth in Russia. Numerous retailers provide delivery services online to meet the growing demand of customers amid the Covid-19 pandemic. During Russia’s lockdown, demand for grocery deliveries spiked, defeating some retailers.
The overloaded delivery service was unable to service customers. Some chains encountered delivery delays of up to various days. Market players such as Instacart and others buckled under the pressure and fast delivery service boomed. The industry giant experienced a 7.6% increase in grocery delivery revenue in 2020, high compared to 2019, and is valued at $5.5 billion.
Instacart, a grocery delivery giant that delivers from about 25,000 stores to more than 5,000 cities in North America witnessed a massive surge in its app downloads, which increased by 218% in March 2020, quite high compared to the previous month.
Amazon spokesperson explained this trend in delivery service, “Due to the Covid-19 outbreak, we have experienced a significant increase in online grocery shopping.” The pandemic has affected the delivery of both Amazon Fresh and Whole Food Market. The grocery delivery giant has to work around the clock to efficiently cater to the growing requirement of people. But with the boom of grocery delivery, it became essential for brands to find ways to meet the growing market demand.
With the global widespread of Covid-19, most people have been asked to work from home (WFH) or self-quarantine. This has increased the online delivery service to a great extent. Hence, if you have a grocery delivery business, it becomes vital for you to find ways to help you cope with the growing demand for fast delivery amid the pandemic.
You can take the support of a digital platform to lift your grocery delivery business. Check the complete list of ways that you can consider to raise your grocery delivery.
Many brands are facing a hit due to the pandemic. However, if you know the right way, this is also the right time to achieve a growth lift in your grocery delivery business. Invest in a grocery delivery app with all essential features including contactless delivery, online payment, etc. to make it easier for your ideal customer to have quick access to products. As online sales is a prominent area due to the increase in the number of people working from home or in self-quarantine, the delivery app will help you meet the growing demand.
The demand for home-delivered groceries and meals has increased amid the pandemic. Hence, to make the presence of your grocery business worth, you can build a grocery delivery app that enables you to reach end-users and cater to their demand. You can even use gift cards and other offers to allow customers to send shopping vouchers to their dear ones.
Try supporting your local retailer to meet the demand and boost your presence online.
Introduce contact-less delivery option to help customers maintain safety. This will also enable you to win the trust of your ideal customers, resulting in creating loyal customers for your brand. Contactless delivery helps to safeguard your delivery provider and customers from getting the virus. Ask delivery providers to call or text customers when they arrive at their doorstep. Leave the order premise and help maintain all safety measures.
Local independent retailers can be considered a lifeline for grocery delivery platforms. And getting them out during Covid-19 will help them understand the problem and win their trust. Due to small orders, most retailers depend on various pickup options and by supporting them, you can build a long-term relationship with them.
Some grocery delivery platforms are charging more delivery fees during a tough time. However, there are many who aren’t charging any delivery fee from local retailers either. Even delivery platforms have raised donations and relief funds to help their delivery providers financially.
You can introduce a scheduled delivery option if your delivery platform doesn’t possess one, helping customers schedule deliveries in advance. It can help you generate more revenue. Have a sense of togetherness after understanding the problematic situation and support all by avoiding unnecessary charges.
Delivery providers are your most significant assets; hence, consider their safety as well. Provide both medical and financial support to your delivery providers. Provide them with gloves and sanitisers to help them protect themselves from getting exposed to Covid-19. Educate them on maintaining social distance while delivering goods on-demand.
After Amazon stopped cash payment to promote contactless deliveries across multiple cities, many on-demand platforms have shifted to digital payment options to mitigate exposure to the Covid-19 virus.
Cash exchange can also become a cause for the virus to spread; hence, it’s advisable to adopt a digital payment option ensuring delivery provider and customer safety. Urge your customers to pay online through debit, credit or any other digital option and help reduce the virus from spreading.
Due to work-from-home (WFH) and continuing lockdowns, the Covid-19 spread had made people rely on delivery platforms for day-to-day essentials. Following the motto of keeping the grocery delivery business healthy and reducing the exposure of Covid-19, it becomes essential for you to consider all the above tips.
The digital solution helps you focus on meeting the spiking demand of customers, helping them receive essentials, and stay safe and secure at the comfort of their homes. The digital platform provides you with great opportunities and allows you to meet the increasing demand for fast delivery amid the pandemic. It helps others stay home, ensuring their safety by having every essential delivered at doorstep.