We are becoming accustomed to grocery delivery within 15 minutes in both the US and Europe. There is a lot of competition for this space with many startups. In the past quarter, startups in Europe and the US raised $3.1 billion for grocery delivery within 10 to 20 minutes. All are trying to get into a market with a low average order size. What if the order was hundreds and didn't need refrigeration?
This will be the latest consumer battleground of the 15/30 minute, when high-end consumer goods are delivered last-mile.
Arive, a German startup that delivers premium consumer brands in under 30 minutes, is the latest to join this market. It has raised 6 million in seed financing from Balderton Capital, La Famiglia VC, and 468 Capital.
Arive offers a range of products including personal care, beauty, tech, and fashion. The app allows customers to order and receive their products via bike-only delivery in 30 minutes or less.
It already taps into the behavior it is tapping into. The pandemic seems to have made it so that we all work from home and left foot traffic in inner-city areas at pre-Covid levels.
Arive claims it works directly alongside brands to offer a range of products for on-demand deliveries, giving them a new channel of distribution to reach a new customer base that values speed and convenience.
Arive is available in Munich, Frankfurt, and Hamburg. Its 30-minute delivery guarantee means that it doesn't require as many micro fulfillment centres as grocery companies, which helps to keep infrastructure costs down.
Maximilian Reeker is co-founder and CEO of arive. He said that while the market for fast grocery delivery has become more crowded, brands we love still stick to a three-day delivery schedule. This is far too long for today's time-poor customers.
Bardo Droege is an investor at 468 Capital. He said: Cities are dynamic, fast-moving places. People living there want tools and services that reflect their lifestyles. It's no surprise the category of 15-minute groceries has grown so rapidly. We are confident that the arive team can continue to take on this challenge.
