Why UK Grocers Are Cutting Out The Middleman In The Race For Faster Deliveries

Since the pandemic forced shoppers online, Britain’s biggest supermarkets turned to aggregator apps to fulfil soaring demand. But the cosy alliance between retailers and delivery platforms is now unraveling — as grocers increasingly opt to run their own rapid-delivery services.

At lockdown peak, supermarket listings on major delivery apps helped meet home-shopping demand from customers who couldn’t get traditional delivery slots or preferred to avoid stores in person. For aggregator firms, it was a timely fill for lost takeaway and restaurant business.

But those dynamics have evolved. The Grocer has reported that, while most supermarkets remain available across every major rapid-delivery app, many are now pivoting to in-house, retailer-run services. These newer operations — falling under each grocer’s brand and control — avoid the dependency on third-party platforms altogether.

The rationale is simple: supermarkets get greater control — over pricing, customer data and brand experience. Aggregator-imposed fees and commissions have made it harder to maintain competitive pricing. Marketplaces’ fees are so high that the only way grocers can make the unit economics work is to significantly increase the prices of the items.

And there are early indicators that rapid-delivery demand remains robust. For example, sales on Co-op’s on-demand grocery channels jumped by more than 30 per cent during a major television event — compared with the same period the previous week.

According to market research, the “sub-one-hour grocery” sector could already be worth over £2 billion — and may reach as high as £5 billion by 2030, making up a substantial chunk of the overall online grocery market.

For major supermarkets, running rapid delivery in-house isn’t new. Tesco, for instance, operates its own service — Whoosh — first launched in 2021. The retailer now describes Whoosh as a core element of its broader omnichannel strategy.

These moves reflect a growing confidence that supermarkets can handle rapid-delivery logistics themselves — freeing them from high aggregator fees, and retaining direct relationships with customers. But questions remain: can these in-house services scale profitably, maintain convenience, and match the broad coverage of the aggregator networks?

What’s clear is that the delivery landscape is shifting. The retailers are calling the shots — and writing a faster-paced script for how groceries arrive at your door.