As the COVID-19 crisis changed the market in unprecedented ways, evolving consumer demands led to a sharp rise in grocery e-commerce in the UK. Going grocery shopping at the brick-and-mortar establishments almost became a thing of the past. Social distancing measures pushed consumers to shop online, and grocery sales via this medium went up the roof.
Online grocery shopping: The way forward
According to the Office for National Statistics, internet sales as a percentage of total retail sales peaked in February 2021, accounting for 36.2% of total retail sales in the UK. The trend in online shopping is expected to remain entrenched in consumer habits over the coming period, supporting strong growth in the short- to mid-term.
Enter grocery delivery startups in the UK, including Delivery Hero and Deliveroo and Dija that have cashed in on the situation and have made big investments in online grocery shopping.
US rivals join the race
As the grocery delivery vertical gets more competitive in the UK with current players such as Weezy, Gorillas, Zapp and many more, the US players are also contemplating to get a bigger slice in the pie. Already DoorDash is looking to buy stakes in German online food giant Gorillas. Adding to this competition is the US-based on-demand grocery giant Gopuff, which has now bought UK-based Dija. The company, founded in Philadelphia in 2013, has carved out a niche in ultra-fast deliveries of groceries and essentials.
Following the company’s entry in the UK with its recent acquisition of UK-based Fancy, this deal is expected to accelerate the company’s international expansion by establishing an immediate presence in France and Spain and providing further densification in the UK.
Gopuff, which is backed by SoftBank, raised $1 billion in a financing round valuing the Philadelphia-based company at $15 billion last month.
Fuelling rapid expansion
Through the acquisitions of Dija and Fancy, the US-based company plans to operate in three European countries with about 40 micro-fulfillment centres and 200 employees in the region, with additional plans for continued, rapid expansion.
After closing, Dija, which has a vertically integrated model similar to Gopuff, will continue to operate under the Dija name in the near-term as the two companies create an integration plan to enhance the customer experience across Europe and the UK. The transaction is anticipated to close within 30 days, subject to customary closing conditions.
Define Instant Needs economy across UK and Europe
Combining Dija’s team of industry veterans, extensive infrastructure, and local expertise will complement Gopuff’s proprietary technology and unique customer experience and advance our ability to scale rapidly as we create a leading platform in Europe,” said Daniel Folkman, Gopuff SVP of Business.
“Together, we will continue to innovate and define the Instant Needs economy across Europe and bring the category to more customers in the region.”
What Dija brings to the table
Dija was founded in 2020 by delivery industry leaders Alberto Menolascina and Yusuf Saban and has continued to attract top talent across delivery, technology, logistics, and operations. The startup’s experienced team of leaders has powered rapid expansion across the region. It operates dozens of micro-fulfillment centres across major metropolitan areas, including London, Paris, Madrid, Valencia, and more.
“For the last eight years, Gopuff has been the market and category leader in the US. Together, combined with our team’s extensive experience of building and scaling food and delivery companies across Europe, we are perfectly positioned to lead the everyday essentials space in Europe and beyond,” said Alberto Menolascina, Co-Founder and CEO of Dija.
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