In Europe and the U.S. we are very much getting used to groceries being delivered within 15 minutes, with a huge battleground of startups in the space. Startups across Europe and the U.S. have raised no less than $3.1 billion in the last quarter alone for grocery deliveries within 10- or 20-minute delivery promises. But all are scrambling over a market where the average order size is pretty low. What if it was in the hundreds, and didn’t require refrigeration?
This is probably going to be the newest "15/30minute" consumer battleground, as high-end consumer goods come to last-mile deliveries.
The latest to arrive in this space is… Arive -- a German-based startup that delivers high-end consumer brands within 30 minutes. It has now raised €6 million in seed funding from 468 Capital, La Famiglia VC and Balderton Capital.
By stacking its shelves with well-known brands and spinning up last-mile delivery logistics, Arive is offering fitness products, cosmetics, personal care, homeware, tech and fashion. Consumers order via an app, with the delivery coming via a bike-only fleet in 30-minutes or less.
The behavior it's tapping into is already there. It seems the pandemic has made us all work and play from home, leaving foot traffic in inner cities still below pre-COVID levels.
Arive says it works directly with brands to offer a selection of their products for on-demand delivery, offering them a new distribution channel to a new type of customer that wants speed and convenience.
Arive is currently available in Munich and has recently launched in Berlin, Frankfurt and Hamburg. The 30-minute delivery guarantee means it doesn’t need as many micro fulfillment centers as grocery players, helping it to keep infrastructure costs low.
Maximilian Reeker, co-founder of Arive, said: “While the space for hyper-fast grocery delivery is increasingly crowded, we found the brands we love are still stuck in a three-day delivery scheme. For today’s time-poor consumers, this is too long.”
Bardo Droege, investor at 468 Capital, commented: “Our cities are dynamic, fast-moving places, and people living there want the tools and services that reflect their lifestyles so it’s no wonder the 15-minute groceries category has taken off so quickly. We’re confident the Arive team will take this on.”