Flash forward: The pressure cooker that is e-grocery

Flash delivery providers - and the dark stores and kitchens that come with them - are investor darlings. Heavily advertised and visible on almost every high street, it comes as no surprise that 67% of Europeans know at least one flash delivery service. Usage rates are picking up in Europe, especially in Italy, Poland and Russia, with Glovo and Pyaterochka in the lead.

With as many as 1 in 3 Italians have used Glovo.  

Catering to ultra-instant need fulfillment, flash delivery is most commonly used to order food and drinks for immediate consumption. Whether the solution is the best excuse for modern hermits or the holy grail for the demanding (let’s refrain from using spoiled) consumer is irrelevant. Across the continent, 17% state they will definitely shop via flash delivery in 2022, and a further 38% say they are likely to do so too. This leaves the simple conclusion that this way of shopping is indeed appealing to at least half of us. 

The segment’s “within minutes” promise is raising the bar and consumer expectations along with it – far beyond the realm of quick commerce alone. The first leg of the e-grocery race was all about more convenient shopping, the second is purely fixated on speedy delivery. But the finish line is blurry at best.  

Providers such as Gorillas, Getir and the likes are stumbling into backlash. The rider traffic and gloomy look and feel of the points of distribution are under public scrutiny. The city of Amsterdam for example has already banned these companies from occupying new stores with their dark fronts within city limits for at least one year. If other cities follow suit, reaching half of European consumers quickly becomes a distant dream.  

There’s also the profitability issue. For quick commerce as for their ‘slow’ e-grocery counterparts, baskets need to be filled well and frequently. In other words, e-shopping needs to become an innate habit. Despite all the buzz, it is striking that online satisfaction cannot beat offline. Apart from Russia, European shoppers feel more fulfilled offline than they do online, including quick commerce. 

When looking closely into what drives online (dis)satisfaction, we see that simplicity, findability and especially experience are crucial, yet we must be mindful of distinct levels of e-shopper maturity. Light, inexperienced shoppers have a strong need for improved findability. Missing comparison options of relevant alternatives and pack sizes generate high dissatisfaction rates.

Satisfying heavy (habitual!) buyers is an even bigger challenge, as the interface experience has a stronger influence on their initial online retailer choice.

Working on the premise that satisfaction drives loyalty and loyalty drives bigger, more frequent baskets, the “big fixes” are more enjoyable shopping, rewarding loyalty, offering one-to-one support and personalization. 

Though flash delivery providers might have the upper hand right now due to their user-friendly interfaces and small inventories, they too will have to rethink the heavy user experience to move shoppers upwards on the maturity curve.  

Speed is only sexy for so long. 

Find out more about the world of flash delivery and the future of e-commerce through our on-demand webinar and downloadable content.