15-Minute Grocery Delivery | cajoo

Introducing Cajoo: 15-Minute Grocery Delivery in Paris

A new French startup, Cajoo, has secured $7.3 million (€6 million) in funding to revolutionize grocery shopping. The company aims to provide a swift and convenient service, delivering groceries to customers within just 15 minutes. Initial operations are commencing today in Paris.

The Founding Team and Their Expertise

Henri Capoul, the co-founder and CEO, shared that he departed from Bolt in mid-August to establish this venture alongside two co-founders. His prior experience at Bolt provides a strong foundation in logistics and marketplace operations. Guillaume Luscan and Jeremy Gotteland complete the founding team.

Differentiating Cajoo in the French Market

Currently, France lacks a dedicated grocery delivery service comparable to Instacart. Instead, established supermarket chains offer delivery options, typically with a delivery timeframe of one to two days.

While some retailers, like Carrefour with its Livraison Express and Monoprix with Monoprix Plus, are attempting to accelerate delivery times, these still often require 30 minutes to two hours. Amazon Prime Now also provides grocery delivery, but with similar wait times.

The Demand for Instant Gratification

The success of companies like Deliveroo and Uber Eats demonstrates a consumer desire for immediate access to goods. However, the sustainability of such rapid delivery models is debatable due to economic factors, labor regulations, and potential impacts on local businesses. Despite these concerns, sufficient demand for Cajoo appears likely.

A Full-Stack Approach to Delivery

Cajoo distinguishes itself through a full-stack operational model. The startup manages its own micro-fulfillment centers, maintains its own product inventory, and directly oversees its delivery fleet. This allows for greater control over the entire process and direct sales to consumers.

Lessons Learned from Glovo’s Experience

Glovo previously offered grocery deliveries from local stores but withdrew from the French market due to insufficient profit margins. In Spain, Glovo now concentrates on deliveries from its own dark stores. This highlights the challenges of relying solely on partnerships with existing retailers.

Product Range and Potential Revenue Streams

Cajoo’s offerings will mirror those of a typical local grocery store, encompassing items such as pasta, shampoo, and confectionery. The service will also include the sale of wine, beer, and snacks – a segment proven lucrative by Uber’s acquisition of Drizly for $1.1 billion.

Initial Launch and Expansion Plans

The initial launch is focused on the 9th arrondissement of Paris and surrounding areas. Cajoo anticipates needing approximately 10 micro-fulfillment centers to fully cover the city, a process expected to take several months.

The current economic climate presents an opportunity for Cajoo, with a surplus of vacant stores, garages, and warehouses available for lease.

Competitive Pricing Strategy

“Our model’s key differentiator is offering products at standard market prices,” stated Capoul. “Customers will find prices comparable to Monoprix or Carrefour Express, with delivery fees kept below €2.”

The company intends to generate revenue primarily from product sales, rather than relying heavily on delivery fees, which serve as a deterrent against single-item orders.

Seed Round Investors

The seed funding round is led by Frst and XAnge, with participation from the co-founders of Chauffeur-Privé (later rebranded as Kapten).

Addressing Concerns Regarding Delivery Staff

Concerns surrounding the treatment of delivery contractors in France, as reported by Libération, have prompted Cajoo to prioritize ethical labor practices. Issues such as the employment of undocumented workers have been prevalent within the food delivery sector.

Capoul confirmed that Cajoo will employ some delivery personnel directly, providing them with electric bikes. The company will also collaborate with both contracting companies and independent freelancers.

Commitment to Fair Labor Standards

“We are committed to avoiding the labor practices seen at Deliveroo or Uber Eats,” Capoul emphasized. “Ensuring proper work permits and recruiting responsibly are paramount.” Each micro-fulfillment center will be equipped with restroom facilities and a designated waiting area for delivery staff.

Maintaining high standards as the service expands will be crucial. Cajoo’s initial approach demonstrates a commitment to responsible operations.