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London’s online grocery service Zapp zooms to Manchester, aims to cater ‘need it now’ occasions

Zapp

The pandemic has led e-commerce to alter customer shopping behaviours and transformed the global retail landscape from brick and mortar to omnichannel. 

The UK is considered to have one of the world’s most developed internet grocery industries. Companies are springing up all over the UK, promising to deliver whatever you want in as little as 10 minutes

The latest one to hit the headlines is Zapp, a London-based startup backed by Atomico that delivers everyday items to customers’ doorsteps within 20 minutes, 24/7. 

Zapp zooms to Manchester

Recently, the online delivery company that’s battling it out in London has now launched its services in Manchester, as the company continues to expand outside of London. Already Getir, Gorillas and Weezy are operating in Central Manchester.  

Founded by Joe Falter and Navid Hadzaad in 2020, Zapp operates dozens of ‘Zappstores’, with each store stocking 1,000s of products ready to be picked, packed, and delivered. 

Unlike other startups, the online grocery service caters to the ‘need it now’ occasions, such as entertaining last-minute, an impromptu BBQ, and others. 

“Zapp is for when life can’t wait,” says Steve O’Hear, Zapp’s Vice President of Strategy. “Our sweet spot is spontaneity and urgent-need”.

Leadership team

It’s worth mentioning that Joe Falter is a part of the founding team at Jumia where he led the on-demand services business through to the group’s IPO.

On the other hand, Navid Hadzaad was a product leader at Amazon’s Seattle HQ, after founding GoButler and scaling several ventures at Rocket Internet. 

The leadership team also spans former employees of Deliveroo, Just Eat, Domino’s, and Tesco.

A few days back, the company hired Bank of America Corp, managing director Ngoc Chu as CFO, to help the company navigate an increasingly crowded and competitive industry.

Chu worked as an investment banker for 15 years, most recently at Bank of America in London advising on media and internet deals including Auto Trader Group Plc’s public stock offering. She previously worked at HSBC Holdings Plc.

How does Zapp work?

To order in Zapp, users need to download the Zapp app on iOS and Android and enter their location. Then, they can browse close to two thousand curated products across a wide range of categories. 

Once the order is placed, the products are picked, packed, and delivered within 20 minutes. In terms of pricing, users will be charged a flat delivery fee of £1.99 per order and no minimum order. For orders over £30, there is no delivery fee. 

“After delivering for tens of thousands of happy customers in London and Amsterdam, we’re excited to begin bringing Zapp to other cities in the UK, starting with Manchester,” adds O’Hear. At launch, Zapp covers most of the city center, including Ardwick, Beswick, and Hulme, with additional areas being covered in the next few weeks.

Zapp and sustainability

Zapp has been designed with sustainability in mind from the get-go. The company employs an all-electric fleet, using a mixture of e-bikes and e-mopeds. 

Notably, the products are delivered in recyclable paper bags, and the company has partnered with Planetly to track and reduce its carbon footprint.

Funding

To date, the company has raised $100 million (approx £72 million) in funding from various investors like Lightspeed, Atomico, 468 Capital, and Burda, alongside notable angels such as Mato Peric, Christopher North (former Amazon UK CEO), and Stefan Smalla (Westwing CEO).