How Zapp Works – Speedy Grocery Delivery in London

Last Updated on November 28, 2023

Are you an entrepreneur looking to follow Zapp? Then this blog is for you. We will be discussing how Zapp works and its revenue model.

When times are rough, businesses are going down and the profits are not reking in like they used to — merchants are left with no other option but to become inventive.

This has been seen in a variety of settings over the last year, such as hotels converting empty rooms into coworking spaces for the WFH population and restaurants providing takeout menus and home deliveries.

In the very same manner, in the grocery business, many merchants have also transformed their real locations into “dark stores” along the same lines.

In the last year amidst the COVID pandemic, consumers continued to consume groceries and food essentials — even while being locked indoors. And despite many people’s earnings declining, worldwide shopping volumes climbed overall, with the retail sector’s market value increasing by 35% from February to April 2021.

According to McKinsey, “In many cases, the characteristics that enabled certain businesses to transcend their sector peers—tech-forward and asset-light business models powered by the tailwinds of expanding demand—became even more essential during the crisis,”

And going dark has been one of the ways retail businesses have effectively altered their business models to the epidemic. In fact, this model has been the stimulus for the birth of some of the most successful businesses in the recent years — and Zapp is one of them. Here’s more about Dark Store Business Model.

Let’s learn more about Zapp and it’s business model.

What Is Zapp?

Zapp, one of the new generation of speedy grocery delivery apps vying for a piece of British customers’ wallets, is starting talks about a new round of investment less than seven months after raising almost $100 million (£72.5 million) from investors.

Zapp, which was started by Joe Falter and Navid Hadzaad in London, offers to bring groceries and other critical things to clients’ doorsteps within 20 minutes and is available 24 hours a day, seven days a week.

Impulse purchases and urgent-need items like snacks, beverages, basic foods, personal health and hygiene products, and over-the-counter pharmaceuticals are its “sweet spot.”

In posh London locations such as Chelsea, Fulham, Hammersmith, and Notting Hill, Zapp has been maintaining and fostering its own dark stores that exist purely to fulfil online orders.

What Are The Dark Stores Zapp Is Based On?

First, let’s define what a dark store is and how it differs from other hybrid and ecommerce business models. The Dark Store is essentially a brick-and-mortar store that has been shut down and turned into an operations center. 

These outlets are closed to visitors to allow more storage space  and fast and accurate order fulfillment. Dark stores provide shoppers with resources and opportunities such as online shopping, same-day delivery, or pickup. 

Of course, this concept is not new. Some companies that have long implemented variations of this process include Whole Foods, Walmart, Target, Bed Bath & Beyond, and most major fashion retailers. However, the number of dark stores has grown significantly over the past year as brick-and-mortar stores struggled during quarantine.

As we know, the Zapp app allows you to order and have it delivered to you in 20 minutes or less, 24 hours a day, 7 days a week. To make this possible, they have created their own local ‘Zappstores’, each with thousands of items ready to pick, pack and ship. They also hire our riders to go beyond that to make every order a memorable experience.

The Zapp was launched earlier this year, but it already covers most of central London. Their customers use Zapp for things like last-minute entertainment, break-time drinks, sun-deck ice cream or movie nights with the kids. They also say that Zapp is a lifesaver when a key ingredient is missing in the cooking process or the diaper runs out at 1am.

How Zapp Works – Ways Dark Store Order Fulfillment Works

Fulfilling orders using Dark Stores  is a lucrative option for many  retailers. However, the three most common delivery options at Dark Stores are roadside pickup, store pickup, and home delivery.

• Curbside Pickup

A Curbside Pickup is typically a designated parking space where retail store associates place orders so that customers do not have to get out of their car. This provides the highest level of security for our customers in the context of a pandemic. But it’s also a very convenient way to shop, highly appreciated by many consumers over the past year.

• In-Store Pickup

Another traditional version of the Dark Store is to have a dedicated pick up area inside the store, usually near the main entrance. This means shoppers don’t have to walk around the store to pick up products. This option is convenient for the buyer and there is no shipping cost. 

• Home Delivery

The on-demand product delivery has truly skyrocketed over the past year, and  Dark Stores are minting tons of products on them as well. This is the reason why Zapp has adopted this particular model for their business as on-demand home grocery delivery is fast, convenient, and contactless — perfect for groceries and other necessities.

Here is a list of must-have features in grocery apps for efficient and smooth functioning for customer satisfaction.

Benefits Of Running A Dark Store Like Zapp

• Fast Delivery Solutions

Dark Stores provides convenient and fast delivery options as well as providing the ability to sell merchandise contactless in stores. In a dark store, shoppers don’t have to waste time looking for a parking space, rummaging through the store to find what they need, and queuing in long lines at the checkout.

These fulfillment centers not only offer fast shipping to local customers, but also cheap shipping to all other customers, while keeping  costs low by using physical retail space. 

• Efficient Collection in Dark Stores

The Dark Warehouse simplifies the collection and packaging process by storing  large inventory volumes in a small space rather than a large warehouse. 

Dark stores are created primarily to fulfill orders, so you can optimize your space to make it easier for sellers to collect. This allows you to pick and track inventory  faster and more accurately. 

• Giving Customers More Options

This year, shoppers tried a variety of options for taking their online orders, including roadside pickup, local delivery, and faster and cheaper delivery

Especially for necessities such as personal care products and groceries, dark stores offer local shoppers the convenience of easy or same-day pick-up of their orders. Because of this, these shipping options will continue to exist for years to come, even after the pandemic.

This is why creating your own online dark store app like Gorillas is a very profitable idea for grocery businesses and new entrepreneurs to leverage the grocery delivery market with efficient investment.