U.K.-based grocery giant jumps into the one-hour delivery game
Tesco is launching a one-hour delivery service — a move that will enable the chain to go head-to-head with Amazon.
The U.K.-based supermarket giant introduced its new Tesco Now app, which enables shoppers in central London to choose from a range of 1,000 products, and have them delivered within an hour. Merchandise crosses categories such as fresh fruit and vegetables, meat, bakery goods and dairy, as well as pet, baby, health and beauty products.
Here’s how the service works: Shoppers use the app to select up to 20 items. Orders will be picked in a local store and delivered to customers — via moped — within 60 minutes. Customers will also be able to track their order status via the Tesco Now app, which also delivers live updates on the progress of their order, Tesco reported.
The service is available between 8 a.m. and 11 p.m. on weekdays, and 9am until 11pm at weekends. The service is priced at £7.99 with no required minimum. If customers are willing to wait two hours for delivery, the price drops to £5.99. The "last-mile" logistics and deliveries for the service are being handled by Quiqup, a London-based delivery startup, according to Business Insider.
The new service complements Tesco’s existing online grocery options available in London and the South East. These services both feature same-day delivery and same-day click-and-collect options.
“From forgotten essentials to that crucial final ingredient, Tesco Now can get them to our customers' door within the hour,” said Adrian Letts, Tesco’s online managing director. "Shoppers’ needs are changing and we want to offer a range of services that allow them to shop with us in a way that suits their needs.”
The grocer launched Tesco Now in response to Amazon's invasion into the U.K. grocery market. The app-based delivery service will also help Tesco battle traditional competitors, including Sainsbury’s, which launched one-hour delivery last year, as well as increasing pressure from German discounters Aldi and Lidl, according to Reuters.
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Target debuts next-day delivery service
Target Corp. has entered the fast-growing next-day grocery delivery market.
The discounter on Tuesday launched a pilot for Target Restock, a next-day delivery service for household essentials and dry grocery items ordered online, in its hometown market of Minneapolis-St. Paul. The service, available only to Target REDcard holders, comes with a flat fee of $4.99 per box.
Target Restock comes as such rivals as Walmart and Amazon have been expanding similar services. Notably, it is faster and cheaper than Amazon's Prime Pantry, which has a flat 5.99 delivery fee per box (shipping is free, however, if the order includes five qualifying items). Prime Pantry orders arrive within four business days. Some grocers offer same-day grocery delivery through third-parties, including Instacart and Shipt.
To use the new Target service, shoppers go to the dedicated Target Restock online storefront where they can shop — either by specific item, category or brand — more than 10,000 products, ranging from laundry detergent and paper towels to granola bars and coffee.
As shoppers fill up a box, a grey bar at the top of their screen will show the percentage of space each item in the box has taken up and the percentage of space that's left. (The box is limited to 45 pounds.)
The items will be packaged at a nearby store. If the order is placed by 2 p.m. Monday through Thursday, it will arrive at the customer’s home the next business day.
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