UK's Tesco offers 10-minute deliveries in tie-up with Gorillas

·1 min read
FILE PHOTO: A man looks at products on a shelf inside a Tesco Extra superstore near Manchester

(Reuters) - British supermarket chain Tesco launched a 10-minute grocery dispatch service in partnership with delivery startup Gorillas on Thursday, upping the ante in the race among retailers to reach customers' doorsteps the quickest.

Berlin-headquartered Gorillas and rivals Weezy, Getir and Dija have been offering 15-minute deliveries as the pandemic revitalised high-speed deliveries. Tesco's tie-up is the latest example of a traditional supermarket chain trying out such services.

Gorillas says it can deliver basic grocery items within 10 minutes for a flat fee of 1.80 euros ($2.09), in an attempt to disrupt old-style food retail.

The superfast delivery model has grabbed the attention of larger delivery firms as well as other traditional retailers.

Earlier this month, European online food-delivery service Delivery Hero SE invested $235 million in Gorillas, whose other investors include China's Tencent, DST and Coatue Management.

Tesco, Britain's biggest retailer, said its products will be available on the Gorillas app. The startup will set up micro-fulfilment sites at five large Tesco stores to pick, pack and deliver items within 10 minutes.

"This pilot with Gorillas will help customers get their products right away, supporting those looking to buy food for tonight or last minute forgotten items," said Jason Tarry, chief executive of Tesco UK & Ireland.

The company already has a one-hour grocery delivery service at around 50 Express stores called Tesco Whoosh, which it launched earlier this year.

Tesco's British rival Asda said this month it was expanding one-hour deliveries to more stores, while it also extended its fast-delivery partnership with Uber Eats.

($1 = 0.8617 euros)

(Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Ramakrishnan M.)

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