Boots Partners with Uber Eats and Deliveroo to Offer Advantage Card Points
Shoppers at Boots can now earn Advantage Card points on purchases made through Uber Eats and Deliveroo, the retail pharmacy chain has announced.
According to reports from industry publication, The Grocer, customers will accrue one Advantage Card point for every £1 spent on these platforms. Points are calculated based on the cost of the items themselves, excluding any delivery or service charges.
Enhancing Customer Value and Convenience
Paula Bobbett, Chief Digital Officer at Boots, stated, “Customers can now enjoy the convenience of home delivery within as little as 20 minutes and simultaneously accumulate Advantage Card points on their orders. This allows them to further treat themselves in the future.”
Broader Trend of Grocery and Delivery Platforms
This development follows the Co-op’s recent move to strengthen its existing partnership with Uber Eats for an additional three years, underscoring the grocery sector’s focus on efficient home delivery services. The collaboration between Co-op and Uber Eats, which commenced in 2022, has expanded to include over 1,300 Co-op stores offering their products via the platform.
Expanding Collaboration with Deliveroo
Boots and Deliveroo initially established a partnership in 2021 with a pilot program in select stores. This service was subsequently extended to a wider range of locations.
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Last year, Boots broadened its reach with Uber Eats, introducing rapid, half-hour deliveries of health and beauty products from a network of 14 stores.
Deliveroo’s Growth in Grocery Sector
Will Shu, the founder of Deliveroo, has indicated that the company’s expansion into grocery delivery could eventually surpass its core takeaway food business.
Financial Performance and Diversification
This statement comes after Deliveroo announced its first annual profit in the previous year. Grocery orders currently constitute 16% of Deliveroo’s gross transaction value, which encompasses the total value of customer orders and delivery fees.
Deliveroo has also diversified its offerings beyond food, incorporating brands such as Ann Summers, The Perfume Shop, and Not On The High Street into its platform.
Mr. Shu highlighted growth areas including DIY supplies, health products, and pet food, citing recent partnerships with B&Q and Boots as examples.
Navigating Economic Headwinds
These remarks were made as Deliveroo reported a £2.9 million profit for 2024, marking its first full year of profitability, a significant turnaround from a £31.8 million loss in 2023. However, Mr. Shu acknowledged an “uncertain” consumer environment, noting that increases in minimum wage and employer taxes are contributing to rising costs for retailers and restaurants utilizing Deliveroo’s services.
Mr. Shu commented, “These are substantial increases to their cost base.” Despite these challenges, he stated that the group was experiencing “good momentum” in the UK market but added concerns about potential future inflation and its impact on consumer prices.
Deliveroo’s Global Performance
The Deliveroo group, which also operates in France, Italy, and the United Arab Emirates, experienced a 2% increase in both revenue and order volume. The company also reported improvements in order frequency and customer retention.