Spanish ride-hailing app Cabify bets on grocery supply amid e-commerce increase

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MADRID, Oct 6 (Reuters) – Spanish ride-hailing app Cabify will permit customers to order groceries direct to their houses in 9 cities together with Barcelona and Madrid by way of a partnership with on-line grocery store supply agency Lola Market, the businesses mentioned on Wednesday.

A brand new crop of startups throughout Europe seeks to consolidate market share after lockdowns boosted demand for grocery supply, together with Turkey-based Getir and Berlin-based Gorillas, which have each expanded throughout borders. learn extra

Cabify, which additionally affords e-scooter rent and electrical moped rental, didn’t present monetary projections for the brand new enterprise however mentioned it might assist keep away from pointless journeys, minimize emissions and permit for a extra environment friendly use of assets.

“E-commerce in Spain has been growing at a double-digit rate in the past years,” mentioned Lucía Chávarri, Cabify’s vp of latest enterprise. “It would make sense for us to sustain above-average growth once we establish ourselves.”

By deciding on the “Super” choice within the app’s menu, Cabify customers will be capable to request items from supermarkets together with Spanish chain Dia and the German and French multinationals Lidl and Carrefour, in a primary for the multi-mobility firm.

“The change is here to stay, more and more users are going to want to shop online,” mentioned Chavarri. “The idea is that we can grow in a market where until now we had no presence.”

Madrid-based enterprise capital agency Seaya Ventures and Japanese on-line retailer Rakuten (4755.T) – additionally a lead investor in ride-hailing app Lyft – are Cabify’s fundamental buyers, in line with a supply accustomed to the corporate.

E-commerce in supermarkets and grocery shops was already rising at round 38% yearly earlier than the pandemic doubled the sector’s enlargement charge, Chavarri mentioned, citing information from Spain’s competitors watchdog CNMC.

Rival Spanish supply app Glovo, which has additionally entered the speedy grocery supply sector, mentioned final month that it had purchased Lola Market in Spain and Mercadao in Portugal.

Glovo mentioned it anticipated the annual gross transaction worth of the division to exceed 1 billion euros by end-2022, after topping 300 million euros by the tip of 2021.

Reporting by Clara-Laeila Laudette; modifying by Jason Neely

A Cabify taxi car is seen through the window of a car in Malaga, southern Spain August 3, 2018. REUTERS/Jon Nazca