Uber begins to bank on couriers to pick orders

Uber has unveiled fresh features in its app which will allow Uber delivery drivers to pick client orders in store for the first time in the UK. Other new in-app developments also include the ability for customers to edit orders right up until checkout and an aide for couriers which alerts them if they have picked the wrong item.

Uber executives confirmed that last quarter 14% of Uber delivery orders were grocery – something the company sees continuing as households, houses and fridges all become smaller and customers try to reduce wastage and order more frequently to keep food in date.

The vast majority of these orders (90%) are incremental and 75% of customers now expect express delivery as an option so the company is keen to emphasise the benefits to grocery operators of a partnership with Uber. It also argues that tying-in with the company actually supports local bricks and mortar stores and the localised grocery eco-system while claiming that more and more of its delivery drivers choose to do grocery delivery early on in their Uber employment.

The courier pick and pack will be starting UK-wide in the Autumn – once an order is placed it is immediately matched with a driver who goes straight to store. Delivery riders have a special app which will suggest replacement products and this suggestion feature is supported by deep catalogue learning which aims to try and replicate what the customer would have done.

The new courier app will also help with store navigation and give exact aisle and shelf numbers to speed up the picking. In an attempt to address concerns about the level of knowledge that a courier might have in comparison with a grocery retail assistant, there will be contextualised tips such as checking for ripeness in fruit and vegetables which will appear in real-time for the drivers.

At an app launch event held in central London last week, two representatives from Uber’s corporate partners were on hand to explain the benefits as they saw it of partnering with the firm. Chris Conway, ecommerce director at the Co-operative says that its membership sales were growing fast and that for a lot of Uber customers who are Co-op members their only interaction with the retailer was through the delivery firm.

He says that the Co-op absolutely sees Uber as an opportunity and not a threat and with 2,500 outlets across the UK (some of which are in very rural areas) this delivery option is looking very positive. Some branches, in fact, have 40% sales through quick commerce.

Rich Squire, head of Sainsbury’s digital trading – on-demand team, was also positive noting that the incremental nature of its on-demand sales had certainly elevated his small team’s importance within the company. He sees the dynamics of achieving ‘share of stomach’ as moving more and more towards unplanned orders. Having been largely based around cigarettes and alcohol to date, quick-commerce is now rapidly changing to include fresh grocery. He also sees the lines blurring between takeaway and grocery deliveries as people decide, for example, whether to pay less for a pizza that they heat up themselves via grocery or have a hot branded pizza delivered ready to eat.

In terms of the effect on bricks and mortar shops and their ranges from an increased share of on-demand orders, Squire predicted that stock ranges will be dictated to a greater extent than at present on these kinds of orders and the machine learning that goes with the data on what and when customers are buying on-demand.

He also comments that instead of stores trying to run down their gifting items before Mother’s Day, Valentine’s Day etcetera they could plan much more towards ‘on the day’ sales meaning a store will not expect to run out of flowers by Mother’s Day but will possibly order more on the day to fulfil exactly these orders. 

On the topic of convenience in 2035, Conway speculates that the health and wellbeing category may come to dominate over the traditional convenience store shop big sellers of ‘fags, mags and booze’ and advised retailers to try to work out what the coming big categories for convenience will be.

Glynn Davis, editor

Retail Insider