Last-mile delivery platform Stuart’s UK chief has said there is a “lot of headroom” in the local grocery market, with major partnerships expected to be unveiled in the new year.
Stuart UK general manager John Gillan said the company’s growth in the sector would be driven by supermarkets developing their own quick delivery channels to avoid the risk of courier platforms “stealing away shoppers”.
His comments come after the logistics business was acquired last week by German private equity holding company Mutares.
Stuart already works with several major supermarkets on their rapid delivery services, including Tesco (with Whoosh), Co-op and Sainsbury’s (with Chop Chop).
“There’s still obviously a couple of big grocers not mentioned that we’re in conversations with,” Gillan said. “So watch this space early next year where you’ll see Stuart partnering with them. There’s some big players as well in the quick commerce and food space that we’re yet to partner with.”
Gillan said that unlike the courier platforms – with which most major supermarkets now partner – Stuart offers a “pure white label offering”.
“We don’t disintermediate them from the overall customer journey, which the platforms do. [With the courier platforms supermarkets] lose a lot of that vital customer information, whereas we’re just an extension of their business and brand,” he said.
“It makes sense for grocers to continue to utilise those platforms – as long as they continue to be a source of driving additional, incremental business – but not exclusively. If you’re not developing your own channel as well then you are running that risk of ultimately these platforms stealing away shoppers.”
Stuart was founded in Paris in 2015. GeoPost, the international subsidiary of the French Groupe La Poste, acquired the then startup in 2017.
Last year, the company – which is present in more than 100 cities across Europe – generated more than €400m in revenues. Grocery delivery and partnerships with fmcg brands are behind most of Stuart’s rapid growth.
“Geopost probably originally invested in us thinking the majority of our business would come from retail e-commerce packages and that’s not the way it has played out,” Gillan said. Parcel delivery within 30 minutes or an hour timeframe would be demanded by customers “as hygiene” but that was likely some years away, he added.
New owner Mutares said its acquisition of the company “presents a pivotal opportunity to further accelerate Stuart’s sustainable delivery offering across sectors by diversifying revenue streams and streamlining its offerings for its customers”.
“With Stuart, we are adding a new, high-growth platform to the Mutares portfolio,” said Johannes Laumann, chief investment officer at Mutares. “The company not only strengthens our deep expertise in transportation and logistics, but also allows us to enter the growing segment of urban on-demand deliveries.”
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