Connect with us

Business

London’s newest online grocery delivery app comes from Russia with love

London's newest online grocery delivery app comes from Russia with love 1

By Ben Makori

LONDON (Reuters) – Russia’s biggest internet company dispatched its yellow-shirted moped riders to deliver groceries across London on Thursday, the latest newcomer to launch in a crowded sector that is forcing Britain’s traditional groceries to revamp their business models.

Yango Deli, run by the Russian tech giant Yandex , is opening four London “dark stores” – shops closed to customers, where workers prepare orders for delivery – putting 1.4 million potential customers in range.

At one of its new stores, in an arch under a brick railway viaduct in Battersea, South London, a fleet of bright yellow mopeds and bikes was parked outside for couriers.

Nasdaq-listed Yandex is Russia’s most popular independent internet search engine and largest ride-hailing provider. The “Russian Google” is comparatively little known outside its home market, but says its experience delivering groceries from around 400 dark stores at home and from new ventures in Israel and France will give it a technological advantage.

“We are not really a new company – we have already done it before,” said Evgeny Chernikov, General Manager of Yango Deli UK. “(We have a) massive bank of tech talent which means we can do many things much better and on a much larger scale than others.”

It launched food delivery services in Paris in August and Israel last year. But London is particularly competitive. Yango’s couriers will have to jostle for road space with those from other newcomers with names like Weezy, Getir, Dija and Gorillas, to say nothing of Uber, Amazon and the vans of the traditional grocers.

The Russian formula will need a bit of tinkering in Britain, Chernikov said: it costs more to hire workers, but British customers tend to have more money to spend.

“So it’s all about adjusting the business model to the economic conditions.”

(Reporting by Ben Makori; Writing by Alexander Marrow; Editing by Peter Graff)

Editorial & Advertiser disclosure
Our website provides you with information, news, press releases, Opinion and advertorials on various financial products and services. This is not to be considered as financial advice and should be considered only for information purposes. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third party websites, affiliate sales networks, and may link to our advertising partners websites. Though we are tied up with various advertising and affiliate networks, this does not affect our analysis or opinion. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you, or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish sponsored articles or links, you may consider all articles or links hosted on our site as a partner endorsed link.
Global Banking and Finance Review Awards Nominations 2021
2021 Awards now open. Click Here to Nominate

Recommended

Newsletters with Secrets & Analysis. Subscribe Now