🏙️ Zapp Expands Amidst Market Shifts
Zapp, a rapid convenience player, is capitalizing on the exit of competitors like Getir from the UK market. Recently, Zapp has expanded its operations by opening several new dark stores in London. These moves are supported by a hiring spree, with 20 vacancies in senior roles such as product director, data science, and demand forecasting. According to Steve O’Hear, Zapp’s SVP of strategy, the company is growing due to its focus on premium online convenience in London, differentiating itself from competitors.
💼 Strategic Hiring and Store Expansion
Zapp's expansion is accompanied by a significant recruitment effort, including category manager and buyer roles. The company currently operates several micro-fulfillment centers across London. Since its launch in 2020 with a single store, Zapp has managed to survive the market consolidation that saw other quick-commerce brands like Weezy, Jiffy, and Gorillas exit or be acquired. The company’s focus on a premium customer base in London has been a key factor in its resilience and growth.
🎯 Targeting Premium Customers
Unlike its competitors, Zapp targets affluent customers in central London. Its Zapp Boutique offers luxury brands such as LVMH, Apple, and Cipriani. The average order value on the app and website has risen to $50, driven by high-end items like Château Pétrus wine and Apple AirPods. Zapp's strategy also includes a recent rebrand and the launch of a desktop version of its app, making it more accessible to its target audience.
🚀 Future Growth Plans
Despite its current success, Zapp has no plans to slow down. The company is “doubling down” on London, where it is already operationally profitable. Steve O’Hear hinted at future expansions into other mega-cities, but for now, the focus remains on solidifying Zapp's presence in London. With a customer retention rate of nearly 70% month on month, Zapp is well-positioned to continue its growth trajectory in the premium quick-commerce sector.
Can Zapp’s focus on premium customers make it the leader in quick-commerce?
