Industry Focus: Grocery Delivery

It is generally accepted that technological evolution holds the key to the future. Nowadays, people tend to order everything online, to have it delivered easily to their doorsteps. So, are you interested in joining the expanding grocery delivery industry? Just like any other industry, this one will bring job vacancies, from delivery to managerial positions. We looked at current market developments and trends in 2017 and predictions for the future.

Evolution of the Grocery Delivery Industry…

Years ago, daily deliveries of perishable products (such as milk) were common. This could be seen as the first steps of the grocery delivery industry. However, technological advancements saw the introduction and popularization of refrigerators. Following this, people could store their food for periods of time, no longer needing a daily milk delivery.

Recent decades have seen a huge increase in the use of smart phones and the internet. In turn, these technological developments have paved the way for a new era in the grocery delivery industry.

Current Grocery Delivery Industry

According to CB Insights, the current grocery delivery industry is seen as less quick and convenient than the meal delivery industry. Despite this, more people order groceries online than they do meals. It is possible that the reason for this is that people are too busy to drive to the nearest supermarket to purchase and collect their groceries. Therefore, they are willing to pay a little extra money to have it delivered to their doorsteps.

According to the 2014 Nielsen Global Survey on E-commerce and New Retail, 30% of millennial and 28% of generation Z like to order groceries online. As mentioned before, smart phones and the internet have been the most significant penetrations in this industry. Furthermore, among the European grocery delivery market, the Netherlands (96%) and United Kingdom (90%) have had the most changes by the rise of the internet.

Many market researchers such as CB Insight, Institute of Grocery Distribution, and the Nielsen Global Survey; have proven that this business is growing slowly and gradually. Each year the industry seems to improve and gain more customers. The growing nature of the industry makes it attractive to job seekers and graduates. Read on to learn about the top companies in this field.

European Grocery Delivery Market

European Grocery Delivery Industry: Market Size

The grocery delivery industry has a market size of $3 trillion. In 2015, market size has increased by 20%. The Food Tech Connect, have estimated that it will increase to $80 billion by 2018.

According to Statista, in 2016 UK had the highest (6.9%) sales in the market. This was followed by France, which had 5.3% sales, and 1.2% sales in Germany. The least sales were recorded in the year 2016 from Romania, at just 0.2%. According to CNBC, it’s current worth is $14 billions and will reach $180 billion by 2025.

European Grocery Delivery Industry: Growth Rate

As mentioned previously, the grocery delivery sector of the food industry is gradually expanding. This statement can be supported with CB insights, which clearly show a gradual increase in global grocery deals. Statistics from CB insights shows 32 deals in 2012, 55 deals in 2013, 64 deals in 2014, and since 2015 deals reached more than 100.

European Grocery Delivery Industry: Top 4 New Trends and Challenges

  1. Search Engine Optimization (SEO)
    The use of the internet and smart devices is likely to increase even more in the coming generations. These two factors are the most important penetrations to an online grocery delivery business. Therefore, sales will almost certainly increase.
  2. Search Engine Optimization (SEO)
    While the internet and smart devices are important, SEO is equally crucial. Consumers use the internet to search for what they want. If an online grocery business platform doesn’t rank highly in search engines, they won’t attract much traffic.
  3. The last mile
    This is one of the most famous trends in this industry. This is to figure out the last mile in order to get ahead of competitors and to maximize customer satisfaction.
  4. Transparency
    An online grocery delivery business is mostly based on convenience. Therefore, being transparent is important to build customers’ trust.

agtech, foodtech, grocery delivery, ordering groceries

Top 8 European Grocery Delivery Companies: Market Ecosystem

If you have read up to this point, you may be wondering how to go about working in this industry. The above market research suggests that having a job in a grocery delivery company will be worthwhile. So, what might be the possible job roles? Are there various roles for job seekers and graduates?

The list below is derived from the market ecosystem research, by referring to Indeed, Paysa, Crunchbase, Owler, Data Fox, and LinkedIn websites.

Founded in 1997 by David Gersenson at Lafayette, Colarado

500 employees

Salary: average and base $99k, 0.01% equity, $8k one-time sign in bonus

Competitors: Bundle Organics, Annie’s Inc, and Mom made foods

Founded in 1999 by Jason Ackeram and Joe Fedele at Long Island city, New York city, United States

10,000 employees

Salary: average $108k, base $96k, annual bonus $12k, one-time sign in bonus $11k

Competitors: Instacart, Good Eggs, Amazon Fresh, Grooshop, and Want Worthy

  • Relay Foods (now Door to Door Organics)

Founded in 2007 by Zach Buckner and Arnie Katz at Charlottesville, Virginia, United States

In 2016 acquired by Door to Door Organics

100 employees

Salary: average and base $95k, 0.27% equity

Competitors: Monadnock Food Co-op, Good Eggs, Local Roots Market, Willy Street Co-op, and Katuah Market

Founded in 2009 by Benzi Ronen and Yossi Piki at Palo Alto, California, United States

100 employees

Salary: average and base $95k, 0.19% equity, $10k one-time sign in bonus

Competitors: GrubMarket, ProduceRun, Good Eggs, Door to Door Organics, and Instacart

Founded in 2011 by Alon Salant, Bob Zoller, and Rob Spiro at San Francisco

250 employees

Salary: average and base $131k, 0.10% equity, $12k one-time sign in bonus

Competitors: Postmates, Love with Foods, Instacart, Fresh Direct, Amazon Fresh, Grooshop, and Want Worthy

Founded in 2012 by Apoorva Mehta, Max Mullen and Brandon Leonardo at San Francisco

250 employees

Salary: average $186k, base $136k, annual equity $50k, one-time sign in bonus $16k

Competitors: Amazon Fresh, Chef’d, Fresh Direct, Peapod, Postmates, and Store Power

  • Fresh Nation

Founded in 2013 by Antony Lee at Stamford, Connecticut

50 employees

Salary: average $27,961/yr for grocery associate, average $64,855/yr for operation manager

Competitors: Eat Much, Fresh Direct, ZipOngo, Nutrine, and Cortilia

Founded in 2014 by Mike Xu at New York, USA

50 employees

Salary: average and base $139k, 0.20% equity

Competitors: Farmbox, Direct, Door to Door Organics, Net Grocer, Fresh Direct, Instacart, and Farmigo

food tech, grocery delivery

What are Job Opportunity in the Grocery Delivery Sector?

  • Entrepreneurs
  • Admin/ executive assistance
  • Human Resources
  • Managers
  • Finance
  • Engineers
  • Graphic Designers
  • Sales
  • Contractor operations
  • Drivers/ Deliverers

What Are the Skills Required to Work in the European Grocery Delivery Industry?

  • Applied Science
  • Computer Science
  • Web Engineering
  • Web Technology
  • Engineering
  • Web Design
  • Business Studies
  • Economics and Finance
  • Entrepreneurship
  • Creative and critical thinking
  • Leadership
  • Driving

Top 10 European Universities that Develop Required Skills in the Grocery Delivery Industry

Top 4 Online Universities to Gain the Required Skills in the Grocery Delivery Industry

If you attend one of above mentioned universities, you could graduate with the required skills for working in the grocery delivery industry. Current developments in this field promise many different career opportunities to emerge in the next few years.

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If you liked this article, you might also be interested in our feature on Food Delivery.

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Theresa Kern
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