Grocery Guru Episode #30:Rapid Groceries |10-minute Window Deliveries Making Business Matter (MBM)

The Rise of Rapid Groceries

Join Andrew Grant and Darren A. Smith in the thirtieth episode of the Grocery Guru. They discuss Rapid Groceries - The Rise of 10-minute Window Deliveries by 8 Start-Ups. Plus, the moves by Tesco and Sainsbury's with 'Whoosh' and 'Chop-Chop', to compete.

You Can Read the Rapid Groceries Episode Transcript Below:

Darren A. Smith:

Hello, and welcome to Episode 30 of the Grocery Guru. We're here with our guru, which is Andrew Grant. Andrew, how are you?

Andrew Grant:

Morning, Darren. Happy, happy new week.

Darren A. Smith:

Yes. A new week twice. We've just had a bank holiday. Andrew, what's in the press at the moment around the world of grocery?

Andrew Grant:

Well, let me throw some words at you, Darren. See if they spark anything. Gorillas, fancy, wheezy, deja, zap.

Darren A. Smith:

Is that them calling?

Andrew Grant:

Jiffy. It was them calling, yeah. Zap, jiffy, deja, wheezy, gorillas, get here.

Darren A. Smith:

Okay. So what's in my mind is animals with asthma.

Andrew Grant:

Oh, okay. Aren't they all plays on fast, nippy, quick? I think that's what they're supposed to conjure up. But yeah, the world of rapid groceries.

Darren A. Smith:

Oh, okay. So we talked about this a few episodes ago, around there was one that Justin King had put some money into. Am I right?

Andrew Grant:

Snappy.

Darren A. Smith:

Snappy, right? Remember. Yeah, cool.

Andrew Grant:

I know a couple of weeks ago you were gently chiding me about getting a prediction wrong about Jack's stores and Tesco Metros.

Darren A. Smith:

I certainly was.

Andrew Grant:

But I'm quite pleased that I picked up this trend, I don't know how many episodes ago, and all of a sudden it's like double feature in the Sunday Times.

Darren A. Smith:

Oh, okay. Okay. Yeah, you picked up on snappy and Justin King made an investment, I think of a hundred thousand pounds, and we talked about short windows, weren't we? Narrow windows.

Andrew Grant:

Yeah. But the crazy thing is 19 billion of venture startup money has gone into these businesses in the last five years.

Darren A. Smith:

Wow.

Andrew Grant:

This blew my mind away. Have you any idea? You used to work there. What's the market capitalization of Sainsbury's?

Darren A. Smith:

Gosh. Now you're asking.

Andrew Grant:

I know.

Darren A. Smith:

It's start of the week. No idea.

Andrew Grant:

Okay, it's 5.9 billion.

Darren A. Smith:

Oh, okay. I was going to say 12. I don't know why 12. All right.

Andrew Grant:

Okay. Share price times the number of shares, basically what the business is worth.

Darren A. Smith:

Yeah, it's expected. Okay.

Andrew Grant:

Gopuff, which is a American rapid delivery service, just arriving in this country. What do you think their market capitalization is?

Darren A. Smith:

Oh, I don't know. But they sound like they're new. They sound like they're not worth much. 10 million.

Andrew Grant:

Well, 6.3 billion. So bigger than Sainsbury's. More valuable than Sainsbury's.

Darren A. Smith:

Wow.

Andrew Grant:

GetHere, that's already over here, five billion. Morrisons is only 4.3. So these businesses, literally only just starting, are worth more than our second and fourth biggest supermarket chains.

Darren A. Smith:

Wow. So let me just get this right. These start up speedy delivery companies have a worth at the market. The stock market believes these things will be worth more than Morrisons and Sainsbury's.

Andrew Grant:

Are worth more [crosstalk 00:03:07].

Darren A. Smith:

Are worth more because basically they have potential of what'...