Aussie online grocers ShopWings and Grocery Butler have merged operations, with the combined entity operating under the ShopWings brand.
Two of Australia’s leading online grocers, ShopWings and Grocery Butler, have merged operations. The combined business will operate under the ShopWings brand in Sydney, Melbourne and Brisbane over a client base of more than 15,000 people.
The merger will allow the combined entity to strengthen its position across the three major cities, capitalise on an enhanced logistics network and better prepare for future expansion.
Guillaume Ang, current ShopWings COO will take over as CEO of the combined entity. Current CEO of Grocery Butler, Michael Parthenides will lead the Melbourne operations. Manutea Dupont, the current Managing Director for ShopWings will remain on the board of directors, along with Parthenides.
“We are very proud to announce this merger which will help us strengthen our geographical footprint,” said Dupont.
“The merger accelerates the pace at which we will reach our current 18 month objectives,” said Parthenides. “Their tech-focused team and brilliant technology stack are a perfect match for Grocery Butler. We bring to the table our diverse customer base, more than 80 personal shoppers, a complementary geographical footprint and a capital-efficient approach to business.”
ShopWings will be supported by leading start-up accelerator BlueChilli, and remain part of the Asia Pacific Internet Group, the joint venture between Oreedo and Rocket Internet.
The merger is a strategic move that comes at a time when competition is heating up in the online grocery space. Customer demand and expectations are growing, more smaller players are entering the space and the major bricks-and-mortar supermarket players have not yet come to dominate the space.
Rather than perceiving each other as enemies, the two online grocers have seen more value in pooling their resources and experience to strengthen their combined position in a tough market.
“Online grocery shopping has huge market potential,” said Ang. “We are convinced of the strategic benefits of the alliance between ShopWings and Grocery Butler, forming a strong market leader with an impressive track record in technology, operations and sales.”
ShopWings launched in Australia in January 2015 and connects customers with personal shoppers who hand-pick groceries from a range of local stores. Grocery Butler launched nearly three years ago in Melbourne and provided a similar “personal shopper” experience.