What margin expectations should I set for rapid delivery apps like Gorillas?
Members report that margin expectations for rapid delivery platforms vary depending on product category.
- **Grocery products**: Rapid delivery apps typically expect to price-match small convenience stores (like Waitrose or Tesco Express), which constrains margins to wholesale-equivalent levels. - **Non-grocery products**: Apps can be "more greedy" with margin demands when competing on non-grocery items, suggesting better negotiating positions outside the grocery category.
One member noted they're operating at the same margin rate as their wholesale business when supplying rapid delivery platforms. The key variable is category: if you're in grocery, expect tighter margins aligned with small-store retail pricing; if outside grocery, there may be more room to negotiate higher margins.
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