Tesco has partnered with Just Eat to bolster its on-demand delivery service Whoosh.
The deal will see the supermarket leverage Just Eat’s white-label delivery service Just Eat Go (formerly Jet Go) for the delivery of orders made on the Tesco app.
Just Eat launched the delivery-as-a-service offering in June, initially with Co-op.
The service allows supermarkets to sell product through their own website and app, but leverage the aggregator app’s network of couriers to deliver baskets to shoppers’ homes.
The Tesco deal also covers on-demand services offered by One Stop and Booker’s symbol brands such as Premier.
“Our new partnership with Tesco demonstrates the diverse range of retailers who are utilising our service, from community retailers such as One Stop, to big-brand grocers including Tesco Whoosh,” said Tom Baxter, commercial director for Just Eat Go.
“With Just Eat Go we empower our partner brands to respond even more quickly to the rising demand for rapid fulfilment, something that will be particularly important as we head towards the busy festive season.”
Tesco also works with Uber Eat’s white-label offering Uber Express and last-mile delivery firm Stuart to deliver Whoosh orders.
In Ireland, the supermarket utilises Deliveroo’s white-label delivery service Deliveroo Express to service Whoosh orders. Deliveroo Express for grocery delivery launched in April, replicating Deliveroo’s existing white-label service for restaurant deliveries and takeaways.
Last week, The Grocer revealed Tesco was upgrading Whoosh to offer full-basket shops.
Order sizes for Whoosh deliveries had been restricted by the size and weight that could be safely carried on the back of a moped.
But in select stores – understood to number in the hundreds – at certain times of day the upper limit on order size has been removed.
The Whoosh service now also allows shoppers to schedule a delivery for later the same day, from selected stores. It is understood this option will be available in 700 Tesco stores by the end of the year.
Tesco launched Whoosh in 2021, initially from a handful of stores, for what Tesco CEO Ken Murphy revealed to be “a handful of millions”.
It’s now available in over 1,500 stores – among them around 180 larger format stores – covering around 70% of the population.
“It’s now a really meaningful business,” Murphy told analysts in a results call last month.
The supermarket revealed Whoosh orders are up nearly 60% year on year with an increased number of active customers and basket sizes.
“We think we’re about, say, 25% into the opportunity for Whoosh,” Murphy added.
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