DeliveryDrop grocery home delivery network

Independent retailers using home delivery service DeliveryDrop can become their own ‘dark stores’ to compete with rivals, according to its founder and chief executive. 

Launched in Sheffield in November 2020, the firm now operates nationwide after securing a £14.5m investment from Sheffield United’s former co-chair in December last year. 

Founder Syed Sherazi told betterRetailing up to 700 convenience stores are now operating the service, which promises delivery in 20-25 minutes, using its own driver network of 20,000. 

“The pandemic helped accelerate people’s buying habits and we were able to saturate the market in about 12 months,” he said. “We understand a store owner can’t afford to go out and do deliveries, as well as run their store, so that’s why we partnered with a third-party network to give them confidence when working with us.” 

Stores working with DeliveryDrop are expected to monitor orders on a tablet and pack them, ready for pick-up. The firm handles the rest from start to finish, including inventory scanning to ensure every product is available on the app, marketing support and exclusive offers. 

“We are aggressively trying to fight the market, especially dark stores, and we do that through deals. For example, we entice shoppers by offering them £15 off their next order if they spend £20, and we take the financial hit,” said Sherazi. 

It is understood bigger platforms, such as Deliveroo and Uber Eats, take up to 35% of the margin generated through sales from its partnered stores, but DeliveryDrop only takes 10%. 

“We know the margins convenience store owners are working with right now, and they are low,” explained Sherazi. “We also don’t charge the customer an ongoing fee for using the service.” 

Although there isn’t any criteria to become a DeliveryDrop site, there are initial sign-up fees, which vary depending on how big a store is, how many products will be listed and whether a social media bolt-on, or delivery network, is required. 

“We do reimburse retailers £5 per delivery if they use their own drivers,” added Sherazi. “We just want to work with retailers who want to get involved in making home delivery work for them.” 

The firm has recently struck a deal with a firm enabling its delivery app to be integrated into a store’s point of sale, which is expected to launch later this year, allowing automatic pricing updates and stock monitoring. 

“Our retailers are their own dark stores,” he said. “Retailers need to take note of online delivery because this is the trend, and they might not get the next generation of business if they don’t start now,” said Sherazi. 

“It all comes down to how much effort a store is willing to put in. It is about a three-to-four-year process to really get it right, and we are ready to help those that want to invest the time.” 

To express interest in the service, contact RN on 07597 588972

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