Ultrafast grocery delivery company Buyk has announced its expansion into Brooklyn, Queens, and the Bronx just two months after its successful launch in Manhattan in September. This will make it one of the largest grocery delivery services in New York, a fiercely contested title in a fragmented sector where rapid expansion and customer capture is the only way to keep ahead of peers.
Buyk is a real-time service which promises to deliver supermarket-standard groceries to clients’ doors in under 15 minutes. It is far from the only ultrafast retailer in New York – a host of startups including Gorillas and Fridge No More have sprung up in the Big Apple over the past few years as demand for convenient shopping solutions has grown throughout the Western world. But Buyk’s rapid expansion over the past two months represents a significant step up as industry players race to win custom in the Big Apple.
The move brings Buyk’s total number of dark stores (fulfilment centres from which deliveries are dispatched) to 20, which makes Buyk one of the largest ultrafast players in New York. It also represents explosive growth, with the company more than doubling its total number of dark stores in just two months.
In a recent press release, Slava Bocharov, Co-Founder of Buyk, said “In just two months, Buyk has seen growth that has taken other players in the sector around a year to achieve. However, this is just the beginning of our journey towards making Buyk the go-to name in grocery. We see huge potential for future growth in the ultrafast sector, as online channels continue to represent just a small share of the total grocery market, and Buyk intends to lead the way in this transition from offline to online.”
Rapid customer capture is of the utmost importance in the ultrafast sector as the relatively new industry gains significant traction among metropolitan audiences. Huge capital investment has sustained the fierce competition among the startups in the market up until now, but it is unlikely that demand will be able to keep up with this ample supply, and consolidation in the sector seems inevitable in the near future. For companies hoping to avoid being acquired, the only option is to invest big in expanding their dark store network and gaining market share. This additionally offers players a competitive advantage in the ability to hone product assortments at a hyperlocal level, refine operations to reduce waste, and optimize their margins.
Buyk is planning to continue scaling at a rapid pace, hoping to expand across the US after it has established a presence in all five boroughs of New York. By the third quarter of 2022, the company aims to have over 480 dark stores across New York, Los Angeles, Chicago and other major U.S. cities, PYMNTS reports.