Fast delivery takes off amid COVID-19 crisis
— Like millions of people around the world, Yuri Nekrasov stopped going to the grocery store every day last year when authorities in Moscow enforced a coronavirus lockdown.
But even after restrictions were lifted, Nekrasov has stuck to his new routine, ordering groceries online from rapid delivery companies that promise everything from milk and eggs to toilet paper in as little as 15 minutes.
“We now only go to a real supermarket once a week or once every two weeks,” the 32-year-old finance lawyer told AFP.
Rapid grocery delivery services have recently boomed in Russia, reflecting a global trend that has seen similar businesses winning customers in Europe and the United States.
More than $14 billion has been invested in grocery delivery services worldwide since early 2020 — most of it this year — according to PitchBook, a financial data provider.
Russians have embraced e-commerce later than other countries, but the world of online shopping has recently seen explosive growth.
While many retailers offer online delivery services, companies like Lavka (small shop) run by tech giant Yandex — which Nekrasov’s family uses — and Samokat (Scooter) seek to carve out a niche as ultra-fast online convenience stores.
During Russia’s strict coronavirus quarantine demand for grocery deliveries spiked, overwhelming some retailers.
Overloaded platforms were unable to service customers and some chains experienced delivery delays of up to several days.
As established market players buckled under the pressure, rapid delivery services boomed, said Maxim Avtukhov, chief financial officer and chief commercial officer at Yandex, which was founded in 2019.
“It was a game changer,” Avtukhov told AFP.
“Before the pandemic we were an amusing toy. The pandemic changed everything, especially in the beginning when people were gripped by panic.”
The company, which also offers a restaurant food delivery service, relies on an army of bicycle couriers and multiple warehouses known as “dark stores.”
On average it takes two minutes to put together an order, Avtukhov said.
The service, which has a limited assortment of goods and prices generally higher compared to supermarkets, has targeted young, middle-class professionals.
Mary Levocz, a 34-year-old English teacher in Moscow, said she started using Yandex’s 15-minute delivery service in early winter to
avoid going out in the cold and lugging around heavy items such as bottled water.
In the fourth quarter of 2020, the
rapid delivery business brought in more than 4 billion rubles ($52 million), or 18 percent of Yandex’s taxi and food delivery services.