Delivery wars heat up: Greggs picks Just Eat over Uber and Deliveroo

Bakery chain Greggs will work with Just Eat after testing the food delivery firm alongside rivals Deliveroo and Uber Eats in several cities last year.

Greggs will begin to roll out delivery this week, launching first in Bristol and Birmingham, followed by Manchester, Leeds, Sheffield and Nottingham in the spring.
The service will then be expanded to London, Newcastle and Glasgow, with plans to achieve national coverage by the end of the year.

So far, top selling delivery items have included the firm’s sausage roll, vegan sausage roll and steak bake.

Greggs chief executive Roger Whiteside said: “We know from the trials we have carried out that our customers love the idea that they can get Greggs delivered directly to their door and we’re delighted to now be working with Just Eat to provide that service to our customers across the UK by the end of this year.”

Just Eat UK managing director Andrew Kenny said: “We’re proud to be the only food delivery app that can bring you the likes of the Greggs vegan sausage roll wherever you are.
“This is an exciting exclusive partnership for Just Eat. Greggs has proved extremely popular with our customers, especially during breakfast, demonstrating that as a nation we love the convenience of getting our favourite food delivered.”

In a trading update last week, the Newcastle-based bakers said it will pay out a £7 million bonus to more than 20,000 employees following a “phenomenal” year, which saw the launch of its vegan sausage roll boost profit. Greggs said profit before tax is expected to be “slightly higher” than expectations.

David Nicholls, CTO for Retail and Hospitality, Fujitsu UK has put his thoughts together on why this is yet another example of Greggs taking advantage of innovation to drive further success.

“After a successful 2019, Greggs’ partnership with Just Eat indicates that the bakery chain is showing no signs of slowing down,” Nicholls said. “The partnership highlights a growing trend as brick-and-mortar fast food restaurants look to match their physical stores with a strong online presence. The hospitality industry has benefited over the past few years from the speed and convenience of online delivery and Greggs has clearly pinpointed it as an area that can help it continue to grow.

“This signals a changing tide in the fast food industry. The speed and convenience of Greggs’ physical stores is no longer enough and they are missing out on customers who want a similar service in the comfort of their own homes. And innovations in technology are welcomed by customers; our research found the almost half (40%) of UK citizens believe that retailers have been too slow to make the most of new technologies. A multichannel presence will undoubtedly be a key factor for success for the fast food industry moving forward.”