Skip to navigationSkip to contentSkip to footerHelp using this website - Accessibility statement
Advertisement

ShopWings aims to make a fortune by doing your grocery shopping

Timna Jacks
Updated

Subscribe to gift this article

Gift 5 articles to anyone you choose each month when you subscribe.

Subscribe now

Already a subscriber?

Supermarket chains are falling behind in the online shopping revolution, says Manu Dupont, the co-founder of new online supermarket ShopWings.

Nearly two months after the launch of the new grocery delivery service in Sydney, Mr Dupont said delayed home deliveries and imprecise food allocation have weakened supermarkets' online stores. He said he was positioning ShopWings as a partner to existing supermarkets, rather than a rival seeking to cut their lunch.

"We are not online retailers; we're a software solution and delivery solution to help retailers deliver groceries faster to customers than ever before," said Mr Dupont, who also the managing director of the venture.

Manu Dupont, co-founder of new online supermarket ShopWings, wants to create an urban, nationwide service delivering not just groceries but also goods from the likes of Kmart and Target and produce from local butchers, bakers and fishmongers. 

The ShopWings website enables users to order groceries from supermarkets – Coles, Aldi and Harris Farm – after checking that their postcode is within the delivery zone. Every delivery is guaranteed to arrive within two hours.

ShopWings employees collect the items personally and contact customers when products are unavailable to discuss alternatives. The company prices remain close to retail price, with an added $8.90 cost for each delivery.

Advertisement

ShopWings, which made Aldi's groceries available online in Australia for the first time, launched with the backing of Asia Pacific Internet Group, a joint venture between German start-up factory Rocket Internet and telecommunications provider Ooredoo. It expanded to Australia after the company's successful run in Germany, where it began in October 2014 with funding from Rocket Internet.

"We could have launched in France and Italy, but we started in Australia because we believe there is a huge mismatch between what Australian customers want and what they have," Mr Dupont said.

Woolworths, which is considered a stronger online grocery service than Coles with delivery services at 95 per cent of stores, has not yet partnered with ShopWings. Mr Dupont believes "it is only a matter of time" before Woolworths comes on board, suggesting the supermarket has shown interest in the venture.

Mr Dupont faces competition in the ever-developing delivery services at supermarkets, Kogan's new grocery service Kogan Pantry, and a slew of new online companies including HelloFresh, My Food Bag, Grocery Butler and GroceryRun.

Despite the recent growth in the industry, Mr Dupont maintained he had the winning ticket. The customer's "human" connection with the personal shopper and speedy delivery were points of difference, he said.

"Online grocery shopping is very competitive and very difficult to crack, and we have a model that works. It performs economically, and is the most convenient for customers."

Advertisement

Online growth area

A recent report by IBISWorld showed the Australian online grocery market was underdeveloped and that consumers have been slow to take to online groceries in comparison with other countries.

But the report indicated it was an area of future growth, predicting 14.3 per cent growth per year over the five years to 2018-19.

Grocery deliveries from supermarkets are just the first stage of Mr Dupont's long-term vision for ShopWings. He aims to create an urban, nationwide service delivering goods from the likes of Kmart and Target, and groceries from local butchers, bakers and fishmongers.

The broadened service, coupled with an expansion to Melbourne and other major cities, should be achieved within months, he said.

Daniel Cameron, a digital strategist at Working Three, agreed local grocery giants had been slow to address online shopping.

Advertisement

But he said Woolworths and Coles had the infrastructure to launch their own home delivery services and were likely to do so, in accordance with their long-running approach to "own as much of the customer experience as they can".

"ShopWings may be considered a partner in the short term until the supermarkets introduce a similar feature," Mr Cameron said.

"And it might be the timing of the delivery – an increasing focus on improved logistics to make sure the time before the goods get to the door gets shorter – would be one way of addressing it."

Mr Cameron said the grocery industry was not immune to disruption, with new arrivals specialising in online grocery delivery showing an appetite for new forms of shopping.

"If these kinds of companies continue to gain popularity by meeting a wide range of individual needs … that could pose a real threat to the supermarkets. They will be keeping an eye on them."

Subscribe to gift this article

Gift 5 articles to anyone you choose each month when you subscribe.

Subscribe now

Already a subscriber?

Read More

Latest In Technology

Fetching latest articles

Most Viewed In Technology