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Popular Russian grocery delivery service eyes US market | Popular Russian grocery delivery service eyes US market |
(about 2 months later) | |
One of Russia’s top rapid grocery-delivery providers, Samokat, said it will launch a service in New York as soon as August, to take advantage of the booming post-pandemic market. | One of Russia’s top rapid grocery-delivery providers, Samokat, said it will launch a service in New York as soon as August, to take advantage of the booming post-pandemic market. |
In the US, Samokat (the Russian for ‘scooter’) will operate under the name Buyk. The founders of the St. Petersburg-based company are targeting 10,000 orders a month in New York by year-end. | In the US, Samokat (the Russian for ‘scooter’) will operate under the name Buyk. The founders of the St. Petersburg-based company are targeting 10,000 orders a month in New York by year-end. |
“We understand that there are higher costs in New York. But there is also a higher check,” the service co-founder Vyacheslav Bocharov said in an interview with Bloomberg. | “We understand that there are higher costs in New York. But there is also a higher check,” the service co-founder Vyacheslav Bocharov said in an interview with Bloomberg. |
Buyk has already found dark stores in New York. Dark stores are small, centrally-located warehouses that commonly help couriers fill orders quickly. | Buyk has already found dark stores in New York. Dark stores are small, centrally-located warehouses that commonly help couriers fill orders quickly. |
Buyk's service will offer free delivery, with its couriers expected to deliver food and other goods by bike within a radius of a mile (1.5 kilometer).The firm is reportedly hiring about 100 people for operations, as well as 500 couriers. | Buyk's service will offer free delivery, with its couriers expected to deliver food and other goods by bike within a radius of a mile (1.5 kilometer).The firm is reportedly hiring about 100 people for operations, as well as 500 couriers. |
The Covid-19 pandemic has triggered a boom in grocery delivery services, as customers developed a habit of ordering food while self-isolating or avoiding crowded spaces. | The Covid-19 pandemic has triggered a boom in grocery delivery services, as customers developed a habit of ordering food while self-isolating or avoiding crowded spaces. |
In Russia, orders have reportedly surged 14-fold since 2019, pushing Samokat to the top three food delivery service providers by sales volume. In terms of orders, the firm remains the largest in the country. | In Russia, orders have reportedly surged 14-fold since 2019, pushing Samokat to the top three food delivery service providers by sales volume. In terms of orders, the firm remains the largest in the country. |
Samokat has an unmatched advantage over its rivals, as the company is familiar with “scaling a project very quickly in new cities,” co-founder of Data Insight Boris Ovchinnikov said, stressing that “a big challenge will be that it’s impossible to use such a cheap workforce in New York as they’re used to in Russia.” | Samokat has an unmatched advantage over its rivals, as the company is familiar with “scaling a project very quickly in new cities,” co-founder of Data Insight Boris Ovchinnikov said, stressing that “a big challenge will be that it’s impossible to use such a cheap workforce in New York as they’re used to in Russia.” |
Samokat couriers in Russia get an average hourly payment of 190 rubles ($2.63). Meanwhile, the median hourly wage for food and grocery delivery drivers in the US is reportedly around $16. | Samokat couriers in Russia get an average hourly payment of 190 rubles ($2.63). Meanwhile, the median hourly wage for food and grocery delivery drivers in the US is reportedly around $16. |
For more stories on economy & finance visit RT's business section | For more stories on economy & finance visit RT's business section |