A courier for Yango Deli, a fast grocery delivery company operated by Russia’s Yandex, is driving through London.
LONDON – Russian tech giant Yandex steps into London’s heated grocery delivery market with a service that delivers essential items to people’s doors in just 15 minutes.
Yandex said Thursday it has opened four dark stores – mini-warehouses designed to handle online grocery orders – across the UK capital. The company’s service, called Yango Deli, has the potential to reach 1.4 million customers, Yandex said.
Yango Deli will compete with a variety of fast grocery delivery services – from the Istanbul Getir to the Berlin Gorillas – that have come to the city over the past year.
Such companies have attracted hundreds of millions of dollars from venture capitalists this year as the demand for online grocery and grocery deliveries has increased during the coronavirus pandemic.
They have also generated a reaction from older competitors in Europe such as Deliveroo and Delivery Hero who are heavily investing in grocery shopping. Deliveroo has launched a 10-minute grocery delivery feature called Hop with UK retailer Morrisons, while Delivery Hero is reportedly on the verge of a deal to get hold of gorillas.
With the arrival of Yandex, the competition in London will escalate even further. The company had already spent aggressively on grocery delivery and the launch of Yango Deli in France and Israel with its local brand, Yandex.Lavka.
“The UK, and London in particular, is an exciting new market for Yango Deli as the city is particularly well suited to the dark store model,” said Evgeny Chernikov, UK General Manager of Yango Deli, in a statement.
“The densely populated capital city is full of busy professionals, young students and many others who appreciate the convenience of a quick, stress-free shopping experience.”