See inside a ‘dark store’ dispatching grocery orders in just 20 minutes
Zapp's fleet of electric bikes and mopeds outside its dark store in St. John's Wood, London. Kiera Fields/Insider
"Dark stores" are local fulfillment centers closed to the public that stock a range of groceries.
"Pickers" armed with smartphone-like devices ensure orders are packed and delivered in minutes.
Insider went inside a London dark store to find out how this superfast delivery is possible.
Apps that promise to deliver groceries to your door in minutes have flooded the delivery market in European cities - especially London.
On busy street corners, you'll often find a 20-something passing out brightly colored flyers for discounts on orders from Getir, Weezy, Zapp, Jiffy, Dija, or Gorillas - the German startup that promises to deliver within 10 minutes.
The growing speedy-delivery market has received $14 billion in global investment since the pandemic began, The Guardian reported in May, citing PitchBook. In August, the US delivery giant Gopuff acquired Dija, a UK startup founded in 2020 that delivers within 10 minutes.
They operate out of "micro fulfillment centers" or "dark stores." Each one is limited to a catchment area within which the apps can deliver quickly.
Insider visited a dark store that Zapp runs in St John's Wood, a London neighborhood. The store promises delivery in under 20 minutes, a slightly longer window than its competitors.
"We believe in under-promising, but the majority of our deliveries are considerably less than 20 minutes," Steve O'Hear, Zapp's VP of Strategy, told Insider in a phone interview before our visit.
"If you promise a delivery window and then don't fulfill that promise, it's the opposite of convenience," he continued.
Zapp operates 24/7 with a fixed delivery fee of 2 pounds ($2.72). Its stock mostly consists of fast-moving consumer goods.
When I arrived at the dark store, the only things that suggested what the commercial building was for were the neat line of sky-blue bikes and mopeds outside and a small Zapp sign above the entrance. The warehouse has no windows, and the door is opaque.
As I walked in, I was surprised by how relaxed it felt, for a business whose mission is speed.
The store manager sits at the front desk with a “picker” discussing new orders. Kiera Fields/Insider
On these screens, the new orders are seen, and the riders are tracked. Kiera Fields/Insider
The store manager sat at a desk by the door in front of three large screens. Behind her, there were aisles lined with the usual trappings of a grocery store. The wall nearest to the entrance was dedicated to the fridge and freezer sections.
The Zapp dark store has aisles of products arranged like most supermarkets. Kiera Fields/Insider
There were beers, sparkling water, and sodas. I was immediately drawn to the funky cocktail cans and craft beers. Zapp's communications manager, my guide for the visit, said Zapp was always trying to bring in new tastemaker brands for trial.
Local beers, canned cocktails, and even White Claws are available 24/7 delivery. Kiera Fields/Insider
The freezer had a large selection of ice creams, including Little Moons Mochi - a Zapp customer favorite.
Another Zapp favorite is tequila. There was even a bottle of Don Julio 1942 that retails at 150 pounds ($204.50), for anyone who needed luxury alcohol within 20 minutes.
When delivering alcohol Zapp riders must check the ID of anyone who looks under 25. Kiera Fields/Insider
High-security items such as liquor were kept locked behind a metal door on the opposite side of the store.
When an order came in, one of the three screens at the manager's desk lit up. A Zapp staff member, dubbed the "picker," leaped into action. She grabbed her grocery basket and started "picking" the order.
Once an order comes in, the pickers move quickly around the store to collect the different items. Kiera Fields/Insider
A smartphone-like device was strapped to her wrist. It received the list of items, and she was off. She headed to the drinks fridge.
She checked an item on her device. On the index finger of her other hand, she wore a small barcode scanner like a ring, which she used to quickly scan the barcode on a can before dropping it into her basket.
The finger scanners and wrist device with the order list reminded me of a video game. Kiera Fields/Insider
Each item's location correlated with a QR code and a number on the shelf. The items were listed on her device in the order that was the most efficient for her to move around the store.
When she scanned the first item, it went green on the device. With two shelves down, she was on to the next one.
Once an item has been scanned, it appears in green on the list, and the picker can move on to the next item. Kiera Fields/Insider
Once the entire order was picked, she sped to the packing station in front of the aisles.
The packing station is filled with paper-only packaging. Kiera Fields/Insider
She wrote the order number on a Zapp sticker, affixed it to a paper bag already tagged with a handwritten thank-you note, and packed the groceries.
© Provided by Business Insider Zapp's paper delivery bags are adorned with pre-written thank-you notes. Kiera Fields/Insider
Then the order was ready - with a complimentary bag of Candy Kittens included.
The riders sat in a row of chairs against the opposite wall waiting to be called. As the picker brought out the bagged order, another order came in, and a different picker was rushing through the aisles behind us.
A rider stepped up, and the first picker loaded the bag into his backpack.
The Zapp rider checks his order route as the picker helps load up his backpack. Kiera Fields/Insider
The rider headed off with his cargo and became a little green dot moving on the map that takes up one of the manager's screens. From the order coming in to the rider departing, the process took two minutes.
A rider is assigned their bike at the beginning of their shift. Zapp is responsible for the riders' transport. Kiera Fields/Insider
Zapp employs all of its riders and pickers directly, rather than paying per delivery, which some apps do. This means the workers get holiday and sick pay, and it helps Zapp ensure that there are always enough riders and pickers available.
"It's about that consistent experience for our customers," O'Hear told Insider.
Zapp offers two types of contracts: guaranteed hours and flexible. Riders have training and performance reviews, and they "are treated the same as the rest of Zapp's employees," O'Hear added.
O'Hear, who quit tech journalism earlier this year to join Zapp, said he saw a "10- or 20-year journey" in which the company builds a global supply chain capable of getting "millions of customers what they want when they need it."
As I walked back to the St John's Wood station, I passed Panzer's, a deli that opened in 1944 and now supplies kosher bread and smoked salmon to this Zapp store, which opened in 2021.
Panzer’s is a beloved local deli that supplies kosher products specifically to the St. John’s Wood Zapp store. Kiera Fields/Insider
We were delighted to host @BusinessInsider to visit one of our Zappstores. Thanks for a fun photo story @KieraFields7!https://t.co/kgItTLOIjM
— Steve O'Hear (@sohear) October 11, 2021
SberMarket and METRO move the dark store in Moscow – Retail Technology Innovation Hub https://t.co/oqsUAVZMEc
— TittlePress (@TittlePress) October 6, 2021
Kiera Fields
Kiera Fields is an Editorial Partnerships Fellow for Business Insider UK. She works with freelance business journalists, thought leaders and market experts to deliver the industry's best insights and top voices straight to INSIDER readers.
