Rapid grocer Zapp has secured a deal with recent rival Jiffy – which last week ceased all customer deliveries – to run a special offer in the Jiffy app to tempt users across to its service.
The Grocer revealed last week that Jiffy was winding up all consumer-facing operations and making a “major strategic pivot” to become a dedicated rapid delivery software company.
Deliveries to customers came to an end days later. Zapp’s “exclusive partnership” with Jiffy will see it become “the official choice for Jiffy customers wishing to continue ordering essentials for delivery within minutes” Zapp said.
The partnership agreement will also see Zapp take on Jiffy’s customer and product analytics, and key supplier partnerships. It does not include any Jiffy stores, nor the transfer of any Jiffy employees, or any other assets.
“We are humbled to be able to bring Jiffy customers the full Zapp experience, delivering all of their favourites, 24/7,” said Steve O’Hear, Zapp VP of strategy.
“We look forward to onboarding many of the current Jiffy customers to Zapp and serving even more Londoners. As the quick commerce sector develops, we will continue to evaluate opportunities to further consolidate our leadership position in London,” he added.
Sifted reported on Wednesday that Zapp was in talks to lay off 10% of its staff, about 250 employees. Zapp confirmed to The Grocer that it had entered a collective consultation process with UK employees, which includes proposed redundancies.
It is understood Zapp’s dark store count has reduced to 11, from a peak of more than 24. The company is planning dark store closures, which it believes will enable it to still retain 90% of its current revenue and customer base.
“As outlined when we announced our $200m Series B funding earlier this year, our ‘mega city’ strategy has seen us become the leading on-demand convenience app in London,” a Zapp spokesman told The Grocer. “That strategy remains unchanged and we continue to invest in locations where we see unprecedented demand and a clear path to profitability.
“We also periodically review our coverage map, including closing select stores and launching new ones, and recently proposed a number of store closures to drive efficiency and increase order volume at adjacent stores in London as we focus on achieving profitability much more quickly whilst continuing to deliver for the vast majority of our customers,” he added.
Several rapid grocery businesses are shedding staff. Gorillas this week revealed it is cutting its global headcount by 300 and pulling out of Italy, Spain, Denmark and Belgium as it “intensifies the shift to long-term profitability”. Jiffy’s ending of consumer-facing operations will see riders and warehouse operatives at its 14 dark stores lose their jobs, which co-founder Vladimir Kholiaznikov called “the toughest part of the decision”. In March it was revealed Gopuff was cutting 3% of its global workforce, more than 400 employees. TechCrunch reported yesterday that Getir is cutting 14% of its staff globally.
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