Snapp the online transportation network giant has partnered up with HyperStar, the subsidiary of French multinational retailer Carrefour in Iran to tap into the Iranian online grocery market with a new brand named Snappmarket.
The online grocery market is becoming the next sector to tap all around the world. Only in the U.S., the online grocery sales are predicted to capture 20% of the total grocery market according to a study by the Food Marketing Institute. Having said that Iranians are getting good at catching up to the latest trends. That’s why Snapp with its extensive experience in transportation and delivery has partnered up with HyperStar an Iranian subsidiary of French multinational retailer Carrefour in Iran to launch a new business line in the online grocery market in the country.
The two companies have started working together from the beginning of this summer. HyperStar is taking care of the vendors and the fulfillment process and Snapp is taking care of the app and deliveries. Snappmarket apps are released for iOS and Android devices, however, for the start, it would only accept orders from certain neighborhoods in Tehran. Currently, there are 7 HyperStar stores in Tehran. Snappmarket plans to open up its own warehouses in the upcoming year in order to speed up the process due to the limited number of HyperStar stores in Tehran.
HyperStar has a good relationship with the vendors, and offers diverse products (more than 5,000) and more importantly, they offer discounts which Snappmarket users could benefit from. Snappmarket would accept orders from 8 AM to 10:30 PM. Snappmarket’s focus is on weekly grocery purchases which is more feasible while they would support the daily basis purchases as well.
The whole online grocery market is quite young in Iran, maybe 2 or 3 years at most. There are still no giants in the market and more importantly, these players have a hard task: Changing the customer behavior towards online grocery shopping. Currently, there are few players in the market, such as Rocoland which recently partnered up with Digikala.
These types of digital platforms could greatly benefit large cities such as Tehran to reduce their air pollution, save customers’ time and eventually help them evolve as a smart city. The well-established brand names of Snapp and HyperStar are familiar names to Iranians, and this could greatly help these companies to gain the customers’ trust to put Snappmarket into the daily lives of Iranians.