Zapp app: Grocery apps are hot as Zapp and Asda grow


app, the app that promises to deliver everything from diapers to bananas, to your doorstep in under 20 minutes, opens a major distribution center in London as competition in the searing grocery delivery industry continues to grow ‘intensify.

The London-based company is opening its first centralized storage facility to help cut costs and protect it from the current supply chain chaos that is wreaking havoc even in some of the largest supermarkets. Zapp has signed for 25,085 square feet of space at Park Royal in West London.

Zapp allows customers to order hundreds of different items for home delivery, promising to get them to you within 20 minutes. To do this, it operates dozens of “dark stores” across the capital – mostly localized reserves for delivery drivers. These stores are small and can sometimes run out of merchandise. The new warehouse will hold thousands of items, allowing Zapp to quickly restock its dark stores without waiting for a third-party vendor.

Zapp’s new Park Royal distribution center

/ Zapp

“Sitting under the crisps or their favorite bottle of wine delivered in minutes is this huge supply chain,” Steve O’Hear, Zapp’s vice president of strategy, told The Standard.

O’Hear said the new warehouse would “dramatically reduce” the number of items missing from orders and give the company “a little more control over our fate.” Wholesale purchasing power should drive costs down.

Zapp was only founded last year but has grown rapidly. The company covers all of Zones 1 and 2 in London and much of Zone 3. It has outposts in Manchester, Cambridge, Bristol, Amsterdam and Paris.

Investors have invested $ 100 million in the startup amid a frenzied explosion of interest in space. Christopher North, the former CEO of Amazon in the UK, was one of the early contributors.

Zapp competes with Tottenham FC sponsor Getir, Gorillas and Wheezy, all of whom operate dark stores and promise to deliver in as little as 10 minutes. Traditional supermarkets such as Morrisons, Sainsbury’s and Tesco have also partnered with services like UberEats, Amazon and Deliveroo to provide fast delivery options.

Asda today announced plans to expand its one-hour grocery delivery service to more stores after a successful trial this summer. Express delivery will be rolled out to 96 other stores, including Isle of Dogs and Old Kent Road in London.

Customers can have up to 70 items delivered to their door in 60 minutes, as long as they live within three miles of stores. Delivery incurs a flat fee of £ 8.50. Simon Gregg of Asda said the supermarket saw “significant” demand for the service when it tested over the summer “with regularly sold out slots.”

To compete in the fashionable market, Zapp has launched a booming marketing campaign that includes the transformation of some London Zapp buses to blue, a partnership with Chelsea FC, pictured, and sponsorship of the Wireless Music Festival.

One of Zapp’s “dark stores”

/ Zapp

“We really think we have the best reach in London in terms of space,” said O’Hear.

Zapp’s “candy” is made up of convenience items like beer, acetaminophen and diapers, he said. The company is planning a special Christmas stock, fearing some retailers may run out. O’Hear was low-key about the details, but said it could be anything from “last minute Christmas drinks to a pair of scissors to do the Christmas wrapping.”

Many retailers have been hit by labor shortages, which means their businesses are understaffed or supplies are slow to arrive due to a shortage of drivers. O’Hear said Zapp has not been affected so far. The company directly employs all of its delivery drivers, which makes it less vulnerable to cyclical changes in the labor market. Zapp has around 2,000 employees, most of them in London.

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