Traffic continues to accelerate, though delivery backlogs may present a challenge. Grocery delivery problem number one over the last decade was user penetration. A prolonged period of lockdown drives forced user acquisition, billions of dollars wasted on free orders for first-time consumers are suddenly not needed anymore.
However, surges in demand are putting logistics to the test, which could create a choppy growth pattern. Compared to food delivery, grocery delivery is significantly more labor-intensive, and major providers are scrambling to hire (and train) the workers they need to meet the demand.
Real-time inventory management is also a critical task, and the risk of disappointing newly “acquired” users is high. In the UK, major players like Ocado have temporarily pulled their sites in order to adjust to the high demand. In the US, wait times for grocery delivery continue to increase, which provides an opportunity for food delivery to fill the gap.