Shownotes Transcript
Grocery Guru Episode #30: The Rise of Rapid Groceries Join Andrew Grant and Darren A. Smith in the thirtieth episode of the Grocery Guru. They discuss Rapid Groceries - The Rise of 10-minute Window Deliveries by 8 Start-Ups. Plus, the moves by Tesco and Sainsbury's with 'Whoosh' and 'Chop-Chop', to compete. You Can Read the Rapid Groceries Episode Transcript Below: Darren A. Smith: Hello, and welcome to Episode 30 of the Grocery Guru. We're here with our guru, which is Andrew Grant. Andrew, how are you? Andrew Grant: Morning, Darren. Happy, happy new week. Darren A. Smith: Yes. A new week twice. We've just had a bank holiday. Andrew, what's in the press at the moment around the world of grocery? Andrew Grant: Well, let me throw some words at you, Darren. See if they spark anything. Gorillas, fancy, wheezy, deja, zap. Darren A. Smith: Is that them calling? Andrew Grant: Jiffy. It was them calling, yeah. Zap, jiffy, deja, wheezy, gorillas, get here. Darren A. Smith: Okay. So what's in my mind is animals with asthma. Andrew Grant: Oh, okay. Aren't they all plays on fast, nippy, quick? I think that's what they're supposed to conjure up. But yeah, the world of rapid groceries. Darren A. Smith: Oh, okay. So we talked about this a few episodes ago, around there was one that Justin King had put some money into. Am I right? Andrew Grant: Snappy. Darren A. Smith: Snappy, right? Remember. Yeah, cool. Andrew Grant: I know a couple of weeks ago you were gently chiding me about getting a prediction wrong about Jack's stores and Tesco Metros. Darren A. Smith: I certainly was. Andrew Grant: But I'm quite pleased that I picked up this trend, I don't know how many episodes ago, and all of a sudden it's like double feature in the Sunday Times. Darren A. Smith: Oh, okay. Okay. Yeah, you picked up on snappy and Justin King made an investment, I think of a hundred thousand pounds, and we talked about short windows, weren't we? Narrow windows. Andrew Grant: Yeah. But the crazy thing is 19 billion of venture startup money has gone into these businesses in the last five years. Darren A. Smith: Wow. Andrew Grant: This blew my mind away. Have you any idea? You used to work there. What's the market capitalization of Sainsbury's? Darren A. Smith: Gosh. Now you're asking. Andrew Grant: I know. Darren A. Smith: It's start of the week. No idea. Andrew Grant: Okay, it's 5.9 billion. Darren A. Smith: Oh, okay. I was going to say 12. I don't know why 12. All right. Andrew Grant: Okay. Share price times the number of shares, basically what the business is worth. Darren A. Smith: Yeah, it's expected. Okay. Andrew Grant: Gopuff, which is a American rapid delivery service, just arriving in this country. What do you think their market capitalization is? Darren A. Smith: Oh, I don't know. But they sound like they're new. They sound like they're not worth much. 10 million. Andrew Grant: Well, 6.3 billion. So bigger than Sainsbury's. More valuable than Sainsbury's. Darren A. Smith: Wow. Andrew Grant: GetHere, that's already over here, five billion. Morrisons is only 4.3. So these businesses, literally only just starting, are worth more than our second and fourth biggest supermarket chains. Darren A. Smith: Wow. So let me just get this right. These start up speedy delivery companies have a worth at the market. The stock market believes these things will be worth more than Morrisons and Sainsbury's. Andrew Grant: Are worth more [crosstalk 00:03:07]. Darren A. Smith: Are worth more because basically they have potential of what's possible. Andrew Grant: Yeah. Now it's got all the hallmarks of a bubble that's going to burst big time at some point. Because I don't know how many I read out, one, two, three, four, five, six, seven, eight players are in the market. There can't be that many people who want a 10 minute delivery service to keep that many businesses going. Darren A. Smith: Well,