At Grocemania, our goal is to be the fastest and the most reliable, on-demand delivery solution for the grocery market.
As a B2B and B2C service, we provide delivery options for existing grocery retailers in local areas as well an easy to use, custom-built platform where people can search for their favourite local and high-street grocery shops, place an order and have their shopping delivered to their door in under an hour.We are the first technology company to focus on the logistics and marketing of grocery products whilst guaranteeing their delivery to households and offices, within the shortest possible period of time. At Grocemania, we are driven by quality, efficiency and a strong desire to exceed our customer’s expectations.
We spotted a problem…We noticed that all logistic services are being provided by retailers and with an absence of logistics expertise in the grocery market, this service is not being provided at the most efficient level. People have a lack of choice when it comes to the ‘one hour’ providers – a space which is being dominated by big stores and their huge one hour delivery minimum order values. Tesco and Amazon Foods require a minimum order of ￡60, whilst Ocado tops the charts at ￡80.
So we came up with a solution.Grocemania! A place where people can find their favourite local and high-street grocery shops and get their shopping delivered in as little as 30 minutes. We love simplicity and our customers can access the service via our website or an app, which will show them a list of partner stores in their local area – each with a shopping menu. After their order is placed, the software will send a notification to the partner store, giving the store time to start packing the order. Meanwhile, the notification will also be sent to all drivers in that particular area, significantly improving the speed of delivery.Grocemania gives customers an incredible selection of choice; from their regular favourites to their local independent grocery stores. It also provides delivery opportunities to local businesses which will increase their customer base and help them expand.“We believe that Grocemania is not about using it once or twice a month but every single day”
The numbers “Food is going to be the largest segment in e-commerce within a few years”, said Will Shu (CEO, Deliveroo - 2015). The online food and grocery market is one of the fastest growing markets in the United Kingdom, with annual growth of sales around 26% (The TechCrunch - 2015). Furthermore, the British Government has planned to invest, nearly ￡20 billion by the end of 2020. With ￡1000 to kick-start business operations and by using our own equipment, we did not incur any additional costs for inventory and our cash flow remained stable. With our £1k investment in the first month, we generated ￡1550 in revenue and ￡266.50 profit. By achieving this monthly revenue and increasing it by 15% each month to cover a Sales & Marketing expenditure of £166 a month, we will reach break-even in month 4.
The journey so far…Our plan is to test in local areas first and scale next. We launched our ‘Demo’ model in the Kingston area and received over 50 orders with an average of ￡27-29 order value, generating a total income of £1550. We’ve received a fantastic response from our customers saying how much they love the service and we’re already seeing an increase in repeat business. We’ve conducted extensive research, including 700 surveys about the market and already, we’ve been able to establish a very strong brand image and awareness in Kingston-Upon-Thames and the surrounding areas. Between our customer reviews and brand reach, word is beginning to spread.Some of our other achievements include;• Established a very strong digital presence, focusing on Google campaigns including Google AdWords, Analytics, Merchandising Centre, Shopping, G+, My Business, and Locations• Online audience of over 3000 followers who engage and interact on a daily basis.• Partnered with CHC Digital, whom we have met during one of our pitches at “London Entrepreneur Networking (LEN)” event. CHC supports us on running our social media channels, such as Instagram, Facebook, and Twitter.• We’ve already partnered with Tesco Express Kingston, Al-Angus Grill & Butcher and Kingston Fresh Market and are in negotiations with Waitrose, DPD and Belron.• Completed our first advertising campaign with MumsNet Local, targeting local mothers as potential customers.
Competitors…We’ve mentioned the absence of logistic services in the grocery retail market and no direct competition is obvious. Our main competition at the moment comes from ‘Ocado’, the biggest online grocery retailer in the UK, who are differentiated from us by having stock and physical warehouses. However, as mentioned above, the one hour delivery minimum order value with Ocado is currently ￡80.Top 6 High street grocery retailers ARE NOT competitors for Grocemania, they are a major partner opportunity With our own API software implemented on their websites, we plan to form partnerships with major grocery shops in the UK and reduce delivery time for each of them, whilst providing our local partners with sales and marketing of their own products and creating a more competitive environment. London is the heart of the biggest European Digital and Technology start-ups and every year new smarter solutions appear on the market. There is a pool of growing business with similar structures to us; however, our business model has an advantage as we don’t carry high equipment costs.The best example of this is a French start-up Stuart, who provides a courier service from any local shop within one hour. Like us, Stuart does use API systems but due to the 10-15kg average weight of grocery shopping in the UK, Stuarts’ drivers lack of appropriate equipment to perform heavy orders.