New Grocery Shopping Contender Comes to Mexico City

Colombian online supermarket, Merqueo, launched a delivery program that claims groceries will be delivered at your doorstep in less than 10 minutes, reports Forbes Mexico. Does this seem realistic in Mexico City’s context? 

This pilot model started to operate in Mexico City in the Benito Juarez, Miguel Hidalgo and Alvaro Obregon municipalities. “Mexico is our focus. We have moved our headquarters to Mexico City, which means our entire team of leaders is in the country making sure that we reach our service and quality goals. We plan on making an investment of US$60 million in Mexico during the next two years,” said Miguel McAllister, CEO of Merqueo, to Forbes Mexico. The company offers different groceries, including produce, imported goods, liquors, home supplies and personal care items, among others, reports Forbes Mexico. It currently operates in Mexico City and the State of Mexico but plans to expand to Guadalajara and Monterrey.

The pandemic has modified consumer behavior all around the world and confinement has allowed e-commerce to skyrocket as it shifts the way people think about consumption. “Over the last 12 months, the penetration of ‘online groceries’ or supermarket deliveries has accelerated, becoming more permanent. During confinement, people began to adopt new technologies and once they have them, they do not abandon them,” said Fernando Lelo de Larrea, Founding Partner of ALLVP, to El CEO.

The impact of this has been huge in Mexico, according to Founder & CEO of Jüsto, Ricardo Weder. “Latin America has gone through a massive adoption of digital services, including e-groceries, during the lockdowns. For example, online groceries in Mexico had penetration rates of less than 2 percent pre-COVID-19. Today, this rate has probably doubled,” he said in an interview with MBN. 

Agility, in this sense, becomes increasingly important as companies need to have the necessary tools to respond to stronger demand, which can only be achieved through a strong infrastructure and logistics, McAllister told to Forbes Mexico. Merqueo has a similar business model to Amazon, McAllister told El CEO, as it operates through different warehouses and storage facilities designed to streamline delivery to the final consumer. “It is the future of online grocery shopping. (Merqueo) does not go to supermarkets; we have a direct relationship with suppliers. Thus, we control the quality and service from point to point,” he added. 

Merqueo aims to offer a diverse range of services for clients at affordable prices for medium socioeconomic levels. “We think that grocery shipping should not be more expensive just because it is online, it should cost the same. This is what allows us to grow so fast,” McAllister told El CEO.