Dive Brief:

• Fridge No More, a new startup based in the New York City neighborhood of Williamsburg, launched its bicycle grocery delivery service last week, Time Out reported. 
• With orders restricted to a one-mile radius around its Brooklyn base, the company says customers can get their groceries delivered within 15 minutes. Delivery, via Fridge No More’s electric bicycle couriers, is free “even if you only order an apple,” and it says on its mobile app that prices match grocery outlets, although its range of inventory is more limited. 
• The company plans to expand in New York City. Its second location, in Park Slope, Brooklyn, is expected to open later this month, and Fridge No More is also looking to serve Manhattan in the future, Time Out reported. 

Dive Insight:

With its promises of delivery within 15 minutes and no minimum order requirements, Fridge No More replaces a quick trip to buy just a few necessities — a service that the online grocery delivery space, which mainly incentivizes bulk orders, has yet to tackle. 

Since the coronavirus pandemic hit in March, millions of shoppers have acclimated themselves to the world of online grocery delivery. Roughly 40 million Americans, or 31% of U.S. households, used online grocery delivery or pickup in March, 26% of whom said they were taking advantage of the services for the first time, according to research by Brick Meets Click and ShopperKit. The influx of demand for delivery services has opened up space for new players like Fridge No More.

A company offering 15-minute delivery rather than two-hour or next-day service could attract significant attention from shoppers looking to make fill-in trips online. Convenience retailers like 7-Eleven have pushed deeper into quick fulfillment, seeking to route on-demand meals and snacks to shoppers, while DoorDash recently launched its own online convenience storefront. In London, startup Weezy recently launched 15-minute delivery in two districts.

Many users have cited frustration with high delivery fees on third-party apps, as well as inconvenient or late delivery arrivals, as reasons for foregoing online grocery shopping in the past. 

For shoppers deciding whether to use an online delivery service, a variety of product brands is less important than delivery speed, according to data from micro-fulfillment company Takeoff Technologies — which is a positive sign for Fridge No More. So far on the delivery app, shoppers can choose from among just 800 items, which CEOs Pavel Danilov and Anton Gladkoborodov say they hope to expand to 3,000. Danilov told Time Out that the app’s more limited brand offerings is deliberate, because they "want customers to have choices but not feel overwhelmed."