J Sainsbury PLC (LSE:SBRY) is likely to lose out from Tesco PLC's (LSE:TSCO) signing up for Uber Eats and Deliveroo deliveries, according to an analysis by Citi.
Britain's largest supermarket announced on July 21 that it would launch on both delivery platforms later this summer. Tesco currently serves the on-demand market through its own Whoosh service.
Citi analyst Monique Pollard estimated that the expansion could see Tesco gain around 20 percentage points of the rapid-delivery grocery market, providing a 0.6% annualised boost to group sales in the 2027 financial year.
However, the move could come at the expense of Sainsbury's, which relies more heavily on third-party platforms for its rapid-delivery service.
Pollard estimated that Sainsbury's could suffer a 0.4% annualised sales downgrade in the 2027 financial year as Tesco gains market share.
Rapid grocery services give supermarkets access to customers seeking smaller orders delivered in as little as 20-30 minutes. Third-party platforms also provide greater visibility among consumers who may not use a supermarket's own website or app.
Tesco's arrival will increase competition for placement and orders on Uber Eats and Deliveroo, where Sainsbury's has already established a presence.
The analysis suggests Tesco could add incremental sales by reaching new customers without relying solely on Whoosh, while Sainsbury's risks losing some of its existing advantage as the on-demand market becomes more crowded.
