Deliveroo Express signs Tesco as first white-label delivery partner

Deliveroo has developed a new white-label solution for grocery retailers, with Tesco the first brand to partner with the new delivery service.

Deliveroo Express will be fulfilling the orders for three Tesco Whoosh stores across Ireland, as the retailer taps into Deliveroo’s logistics technology and extensive rider network, with an infrastructure of around 2,500 riders in the area.

The new service replicates Deliveroo’s existing white-label service for restaurant deliveries and takeaways, offering grocers a rapid, on-demand service that operates through their own online channels. Customers choosing an on-demand delivery option at the usual checkout stage can then follow the retailer’s existing process to track their order once it is complete.

Customers within a 4.5km radius of the three Tesco stores taking part in the trial now have access to more than 3,000 products, with the option to receive their orders in as little as 45 minutes. All on-demand deliveries will be powered by Deliveroo, with Tesco overseeing customer communications, while Deliveroo handles all rider care and delivery instructions, including the pick-up and handover process.

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“Our business seeks to transform the way consumers shop and eat,” said Deliveroo VP of new verticals Suzy McClintock. “The new white-label service complements our existing offer, giving partners the ability to integrate our model into their own online channels and maintain autonomy over customer interaction, while leveraging our extensive rider network and logistics infrastructure to fulfil orders fast.

“We see significant growth potential in on-demand grocery and retail delivery, with speed and convenience no longer desirable but a basic consumer expectation. With more grocers and retailers entering on-demand, we are adeptly placed to support them in reaching more customers in less time,” she added.

Available across the UK and Ireland, the move comes as Deliveroo’s grocery business continues to see strong double-digit growth, with grocery sales now accounting for 16% of the company’s value, up from 13% in the same period of 2023.

Deliveroo sees significant opportunities in grocery and retail, and continues to build new capabilities to drive growth, with co-founder and CEO Will Shu previously saying grocery could overtake restaurant orders at the group. “I don’t see why it wouldn’t be bigger than our core restaurant business over time,” he said in March. “There is a broader societal shift in on-demand, which is the impetus behind a lot of this stuff.”

There are plans to extend Deliveroo Express into other markets beyond the UK and Ireland in the future.