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The Markets
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The Markets
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Tech

Deliveroo and Waitrose expand grocery delivery deal after strong demand

The delivery firm has been offering delivery services from 40 Waitrose shops as part of a trial launched last September

Deliveroo PLC (LON:ROO) has said Waitrose will expand its delivery partnership with the firm to cover an additional 110 shops, a move it says will create 400 new jobs at the supermarket chain.

The delivery app said the nationwide expansion will take the total number of Waitrose shops on Deliveroo to 150 by the end of summer.

READ: Deliveroo expects growth to slow down as restrictions lift

The firm said the partnership with Waitrose forms “a central part” of its expansion strategy across the UK as it aims to attract new consumers, restaurant, grocers and delivery riders to its platform.

The partnership allows Deliveroo customers to order between 750 and 1,000 Waitrose products for delivery, supposedly in as little as 20 minutes, from the supermarket’s branches in the North West, North East, Midlands, South West and South East regions of England and London.

New locations on Deliveroo will include shops in Cheltenham, Lincoln, Exeter, York and Sheffield.

READ: Rise in on-demand grocery startups poses risk to big supermarkets, warns Credit Suisse

The partnership began with an initial trial of 40 Waitrose stores in September last year, however, Deliveroo said sales have been strong since then and have helped “attract new and younger customers” to the supermarket’s products.

"We are delighted to announce a two-year partnership with Waitrose, alongside a nationwide expansion to 150 stores. Waitrose is one of the most respected and loved British companies and we are proud to expand the extremely popular Waitrose service on Deliveroo”, Deliveroo’s chief business officer UKI Carlo Mocci said in a statement.

“As we expand further across the country, this partnership will mean more choice and selection for our customers, delivered in as little as 20 minutes, and will create even more work for riders right across the UK", the CBO added.

Deliveroo’s move into grocery delivery will likely form a key component of its efforts to diversify its business model away from takeaway delivery, with the company warning in a trading update earlier this month that it expects the rate of growth as pandemic lockdowns are eased, although the extent of the deceleration remains uncertain.

Shares in Deliveroo jumped 3.6% to 236.3p in lunchtime trading on Tuesday.

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