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Technology

Sainsbury's Announces Partnership With Just Eat For Home Delivery

By Reuters
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Sainsbury's Announces Partnership With Just Eat For Home Delivery

Sainsbury's, Britain's second biggest supermarket group, has linked up with online meal ordering and delivery firm Just Eat Takeaway, to add faster home delivery for groceries across the country.

Shoppers will be able to order items from Sainsbury's for delivery in under 30 minutes using the Just Eat app.

The partnership will launch with more than 175 stores by the end of February, with a further roll-out across the country in 2023.

Sainsbury's has its own online delivery service, including its 'Chop Chop' service that delivers in 60 minutes.

Other Partnerships In The UK

Just Eat already has partnership deals in Britain with Asda, the UK's No. 3 supermarket group, wholesaler Booker, which is part of market leader Tesco, and fast food group Greggs.

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Last week Sainsbury's reported better-than-expected Christmas trading.

According to market researcher NielsenIQ, while online sales rose 2.8% in December, such sales fell to 10.4% of the UK grocery market, versus 11.2% in December 2021.

Just Eat Takeaway

In Novermber of last year, Just Eat Takeaway announced a reorganisation of its customer service operations, which a spokesperson said could lead to 170 job losses globally.

The company said in a statement it would close a customer service centre in Borehamwood, England, and employees would be offered a chance to work instead in Sunderland, some 300 miles (480 km) to the north.

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In December, the food delivery firm announced a partnership with Co-op for home delivery of groceries across the country.

Analyst Viewpoint

Commenting on the announcement, AJ Bell investment director Russ Mould said, “While there is a market for this service, plenty of other supermarkets are already offering the same thing including the Co-op. Morrisons even aspires to have its products delivered within 15 to 20 minutes so Sainsbury’s can’t even lay claim to being the fastest.

“For all the supermarkets, using a third-party delivery service makes life easier but it still takes time for staff to pick the products from the shelf. If someone is only ordering a pint of milk and a loaf of bread, is that really the best use of the supermarket worker’s time walking around the store filling small bags?

“Sainsbury’s might argue that not being part of the rapid delivery movement puts it at a disadvantage so it cannot afford to stay on the sidelines.”

News by Reuters, edited by by ESM – your source for the latest technology news. Click subscribe to sign up to ESM: European Supermarket Magazine.

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