Ocado Retail has entered into a strategic agreement with rapid grocery delivery service Getir.
Under the deal, Ocado will send communications and promotions to former Getir customers, aiming to attract them to its own rapid delivery service, Zoom by Ocado.
Deal Overview
Ocado Retail has strategically aligned with Getir, a rapid grocery delivery service that has recently stepped back from the UK market. This agreement is designed to target Getir’s previous customer base, providing them with incentives to switch to Zoom by Ocado, Ocado’s own quick delivery service.
As part of the arrangement, former Getir customers received email communications presenting Zoom by Ocado as an alternative. The emails emphasised that Zoom offers a significantly wider range of products and incorporates offerings from M&S, positioning it as a premium service.
Customer Incentives
To encourage the transition to Zoom by Ocado, recipients of the emails were granted a 25% discount on their first order and free delivery. These offers were extended to attract quick adoption and foster customer loyalty.
Additionally, previous customers of Gorillas, a service acquired by Getir in 2022, were provided a 30% discount on their first order with Zoom, along with three months of free deliveries.
Service Coverage
All communications were directed to Getir and Gorillas’ opted-in customer base.
Customers who reside outside Zoom by Ocado’s service areas were instead guided to Ocado’s broader platform at Ocado.com.
This strategic move aims to retain as many customers as possible within the Ocado ecosystem, regardless of their location.
Statement from Ocado
Gemma McIver, Head of Zoom at Ocado, expressed enthusiasm about the opportunity to welcome former Getir and Gorillas customers.
“As Getir and Gorillas exit the UK, we’re pleased to be offering their customers a chance to try Zoom by Ocado,” McIver commented. She highlighted the wide range of products and the inclusion of M&S food, aiming to deliver within 60 minutes, as key selling points.
Strategic Implications
This partnership marks a significant step for Ocado in expanding its market share in the rapid delivery sector.
By absorbing Getir’s user base, Ocado intensifies its presence in this competitive segment, leveraging its existing strengths in logistics and product variety.
The inclusion of M&S products not only enhances the value proposition of Zoom but also attracts customers seeking quality and variety.
Market Context
Getir’s withdrawal from the UK market highlights the intense competition and operational challenges in the rapid grocery delivery sector.
Various companies have faced difficulties in sustaining profitable operations, leading to market exits and consolidations.
Ocado’s agreement with Getir underscores the strategies companies are adopting to survive and thrive amidst these challenges.
Customer Experience
Zoom by Ocado aims to provide a seamless shopping experience comparable to Getir’s.
The communications stressed that Zoom offers five times the choice, mirroring the convenience that Getir customers were accustomed to, but with enhanced options.
McIver assured customers of a ‘smart shopping experience’, combining speed and quality.
Future Prospects
Ocado’s strategic acquisition of Getir’s customer base may set a precedent for future market consolidation efforts among rapid delivery services.
As the sector evolves, companies with robust infrastructures and diversified product offerings, like Ocado, are likely to capitalize on emerging opportunities.
The collaboration between Ocado and Getir represents a significant shift in the rapid grocery delivery landscape.
By integrating former Getir customers into its Zoom service, Ocado is poised to enhance its market position, leveraging its strengths in product variety and delivery efficiency.
