Asda Group partners with Just Eat for grocery delivery

Just Eat Takeaway.com said on Friday (17) it had struck a deal with British supermarket group Asda to sell groceries through its delivery platform.

The Amsterdam-based restaurant delivery company will launch a trial partnership with Asda Group Ltd. in the first quarter of next year, stated latest reports.

Takeaway said the move was "a significant step."

"With over 60,000 restaurant partners on the Just Eat platform, across 95 per cent of the UK, the partnership with Asda marks the next stage in Just Eat’s commitment to delivering the best service and range of options for its consumers."

Takeaway, which also owns the Grubhub brand in the US, also has a delivery partnership with 7-Eleven.

As part of the trial, Just Eat customers will be able to order groceries from five Asda stores, with the expectation that the choice will grow over the course of the year.

By expanding into the grocery delivery market, Just Eat will be competing against the likes of Uber Technologies Inc. and Deliveroo Plc, which is building out a rapid grocery service.

The past year has also seen a flurry of new entrants to European food delivery, including fast grocery delivery firms such as Gorillas, Getir, Weezy and Fancy. Meanwhile, U.S. companies are also coming to Europe, as DoorDash bought Finland-based deliverer Wolt for $8 billion in November and privately held U.S. firm GoPuff has bought both Dija & Fancy.

Just Eat has been offering hot pizza delivery from Asda since 2019, but the new roll-out is its first significant move into U.K. grocery delivery.

A representative for Asda confirmed the relationship. Asda is now run by a consortium of Britain’s Issa brothers and TDR capital.

Asda’s rivals - Tesco, Sainsbury’s and Morrison Supermarkets, are already making inroads to the rapid grocery delivery market. Tesco, Britain’s biggest grocer, recently announced a tie-up with Gorillas, and Sainsbury’s is working with Deliveroo and Uber Eats. Morrison recently expanded its partnership with Deliveroo, testing a mini-fulfillment center in London to offer rapid delivery of essential items.