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Same-day delivery is expected to be the new frontier in online retail and Tesco emerged as a trailblazer by rolling out the service across the UK this week.
Tesco Online managing director Adrian Letts said: “Customers tell us they like getting their shopping delivered quickly and conveniently, and with our same-day delivery service they can now order by lunch to get their shopping delivered for their evening meal.”
The fact that the grocer, which has been trialling the service in London and the Southeast in 2014, has opted to extend same-day delivery nationwide proves there is consumer appetite.
In a world where next-day delivery is now the norm, it is not surprising that shoppers are craving more immediacy - particularly when it comes to essentials like food.
We’re moving rapidly towards a ‘want it now’ culture, where shoppers can grab from taxis to takeaways immediately.
However, Tesco isn’t the only supermarket to offer shoppers same-day delivery. How does its offer stack up against its rivals?
| Tesco | Amazon Fresh/Morrisons | Prime Now | Sainsbury’s | |
|---|---|---|---|---|
| Offer | Tesco shoppers can book a same day 1 hour fixed delivery window. Shoppers in central London can also use Tesco Now, a one-hour delivery service | Morrisons tie-up with Amazon means its Prime members can have their groceries delivered the same day. | Grocery is also available on Amazon’s speedy delivery service Prime Now, which delivers items within two hours | Sainsbury’s rolled out same-day delivery in selected areas last year. Shoppers can receive orders from 6pm the same evening |
| Coverage | 99% of UK households | 302 postcodes across London and the South East | 30% of the UK | The service is only available in 30 stores across the UK |
| Cut-off | 1pm | 4pm | No cut-off | Midday |
| Minimum spend | No minimum spend, however, baskets under £40 will incur a £4 charge | No minimum basket | £20 | £25 |
| Cost | £3 to £8 | £6.95 for orders up to £40, free for orders above | Free for two hour deliveries, £6.99 for one hour | Orders under £40 will be charged a maximum delivery fee of £9. There is no fee for orders over £100 delivered after 2pm Monday to Thursday |
| Delivery method | Tesco is using both distribution centres and stores to fulfil orders | All orders are fulfilled from Amazon’s East London distribution centre | Prime Now delivery hubs | Sainsbury’s fulfils from store |
It’s notable that no other grocer, including Asda, the Co-op, Waitrose, Aldi and Lidl, offer a same-day service. However, with the UK’s online food market expected to grow by 54% to £16bn by 2022, according to grocery trade body IGD, it might not be long until others follow suit.
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