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Delivery Market (formerly Delivery Club)

Company

Internet services
Since 2009
Russia
Central Federal District of the Russian Federation
Moscow
109004, st. Alexandra Solzhenitsyna, d. 23A, p. 1


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Owners:
Yandex - 100,00%
(effective September 8, 2022)
Financial results
2021 year
Revenue: 16.2 millions Ths. rub
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Owners

Delivery Club LLC - founded in 2009. The main area of ​ ​ activity is the delivery of food by order.

Performance indicators

2021: Revenue growth by 60% to RUB 16.2 billion

Delivery Club's revenue at the end of 2021 jumped 60% compared to 2020 and reached 16.2 billion rubles. Such data delivery service of finished food and food published on March 3, 2022.

The share of orders completed by their own logistics by the end of 2021 amounted to 66% against 59% a year earlier, the share of orders from grocery stores increased from 9% to 22%. By the end of 2021, Delivery Club worked with more than 53 thousand partners (+ 37% compared to the end of 2020), including 7.5 thousand grocery stores.

Delivery Club's average delivery time by the end of 2021 was 33 minutes, despite the increased load and difficult weather conditions. The average frequency of using the service increased to 4.8 orders per user, and the number of active users exceeded 5.5 million (+ 21% year on year).

In December 2021, the service performed over 10 million transactions for the first time in history. Transactions include grocery delivery orders, takeaway orders and cashless tips to waiters.

Among the growth factors, the company cites an increase in the speed and punctuality of delivery - the average time in December was 29-35 minutes, the development of the food delivery direction, as well as the launch of the Delivery PRO subscription.

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Thanks to the development of operating technologies, Delivery Club in 2021 significantly increased the speed and punctuality of delivery, which led to an increase in user activity and satisfaction.... Delivery Club allowed customers to receive ready-made food and groceries from traditional restaurants and chain stores in a time not inferior to services running on the dark kitchens and dark stores model, the company said in a statement.
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At the same time, according to a study by Sberbank CIB, published in mid-2021, the popularity of Delivery Club in Moscow is declining - by that time the share of Muscovites ordering finished food through this service fell to 61% from 74% in December 2020.[1]

2020: Market share of ready-to-eat food delivery for September - 17.6% (+ 6.2 pp)

Market Shares of Leading Players in the Ready-Made Food Delivery Market, 2019 - 2020

2018: Revenue growth of 48%

On March 1, 2019, the Internet holding Mail.Ru Group announced that in the fourth quarter, Delivery Club's revenue increased by 71% compared to the same period last year and reached 646 million rubles, and growth for the whole of 2018 amounted to 48%. In the fourth quarter of 2018, the average monthly audience of the service on mobile devices increased by 67% compared to the same period in 2018, and the number of connected restaurants amounted to approximately 8,300. Now the service is available in 107 cities of Russia.

In the fourth quarter, the Delivery Club mobile application received a large-scale update, testing of software based on artificial intelligence began, which plans the movement of couriers and helps to increase efficiency and delivery times. There was also a food delivery agreement with KFC and McDonald's.

2017: Delivery Club food orders reach 50,000 a day

On March 8, 2017, a record was set at Delivery Club - users made about 50 thousand orders per day. Most of all on this day ordered sushi, pizza, Caesar salad, shash kebab and pilaf.

This year, International Women's Day became a record for the Delivery Club food delivery service - the number of orders from various restaurants reached 50 thousand. As a result of the analysis of orders, it turned out that even on a holiday, users prefer to order traditionally favorite sushi and pizza. The top popular dishes also included Caesar salad, shash kebab and pilaf.

It is expected that on this day the number of men ordering increased, but compared to ordinary days, their share did not increase very significantly, by only 3%, that is, 46% of women organized their own holiday.

The most expensive orders through the Delivery Club platform were made in Moscow, Yekaterinburg, Perm, St. Petersburg and Novosibirsk. At the same time, the largest average check was for users of Kursk, Moscow, Surgut, Khabarovsk and Tver.

The top 10 establishments by order amount included Cafe Pushkin, Limonchino, Restaurant Turandot, URYUK, Steak House, Tanuki, Bread Pressing, John Jolie, Fruit Mail, Chinese News.

2015: The number of orders reaches about 20,000 per day

The number of employees as of November 18, 2015 exceeded 300 people. The Delivery Club service unites 4 thousand restaurants.

The number of orders reaches about 20,000 per day. According to the results of the first half of 2016, revenue amounted to 296 million rubles, EBITDA was close to zero. The share of orders in Delivery Club through mobile devices increased 2.7 times in 2013-2016 and is more than 72%.

History

2023: Name change to "Market Delivery"

On May 16, 2023, it became known about the rebranding of Delivery Club - the food delivery service changes its name to Market Delivery. Writes about this Kommersant"" with reference to the press service of the company.

They stressed that Market Deliveri will develop express delivery of goods of different categories. In particular, electronics, household goods and small household appliances will appear in the catalog. At the same time, the conditions for delivery and cooperation for couriers and service partners will remain unchanged, but the main focus of this service remains gastronomy and all scenarios related to diet planning.

It became known about the rebranding of Delivery Club

The rebranding will be held in June 2023. At the same time, the amount of investments will be at least 500 million rubles, says Mikhail Burmistrov, general director of Infoline Analytics. In his opinion, the new name also suggests a closer connection in the future between Market Deliveri and Yandex Market.

Burmistrov says that the service remains unprofitable, and the inclusion of new categories of goods from the non-food segment will increase the average purchase check, which will also have a positive effect on the economy of courier delivery.

Ivan Kurguzov, executive director of Оборот.ру, also believes that the updated service will develop express delivery, including the Yandex Market assortment. According to the expert, marketplace partners with their own retail network can, for example, send goods for urgent delivery directly from their stores or warehouses. In addition, Yandex Market is already engaged in the express delivery of electronics. If the marketplace will use the logistics of Delivery Club and Yandex Food, then the delivery time can be significantly accelerated, says Ivan Kurguzov.

As added to Yandex"," commenting on the upcoming rebranding of Delivery Club, the Yandex Food service will continue to deliver gastronomy and everything related to diet planning from stores, and will develop an account payment service using the QR code "Check" and a corporate catering service "Lunch Card."[2]

2022

Closing the transaction on the transfer to Yandex of a 100% stake in Delivery Club

On September 12, 2022, VK announced the sale to Yandex of a 100% stake in the Delivery Club delivery service. Read more here.

Acquisition of 100% shares by VK with a transfer plan to Yandex

On August 23, 2022, VK informed TAdviser about the signing of binding documents, according to which the company will receive 100% stake in the Delivery Club food and food delivery service and will withdraw from the O2O Holding members. The deal is scheduled to close before the end of 2022 after receiving a number of regulatory approvals.

VK выходит из совместного предприятия со "Sberbank". Delivery Club will go to Yandex

According to representatives of the company, in the future VK plans to transfer Delivery Club to Yandex as part of a deal to acquire Zen and Novosti content platforms.

VK and Sberbank remain strategic partners and will continue to cooperate in various directions.

A fine of 80 thousand rubles for leakage of user data

On August 18, 2022, the judicial section of the Airport district fined Delivery Club 80 thousand rubles for leaking personal data of customers and couriers of the service. This was reported by RIA Novosti with reference to the press service of the Savelovsky Court of Moscow.

The fact that Roskomnadzor drew up an appropriate protocol regarding Delivery Club due to a leak of information became known on July 18, 2022. Then it was noted that the regulator, following the results of the company's audit, revealed violations of the legislation in the field of personal data under Part 1 of Article 13.11 ("Processing of personal data in cases not provided for by the legislation of the Russian Federation in the field of personal data, or processing of personal data incompatible with the purposes of collecting personal data") of the Code of Administrative Offenses of the Russian Federation. The court confirmed the guilt of the food delivery service. The maximum punishment for legal entities under this article is a fine of 100 thousand rubles.

Delivery Club fined for leaking users' personal data

According to the Telegram channel "Information Leaks," a total of 2.2 million records with Delivery Club orders were freely available. They contain information about orders from October 2019 to early July 2021.

The Telegram channel administrator recalled that earlier a partial Delivery Club database was published on the Internet, which contained information about orders.

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If in the first fragment of the database there were orders from 24.05.2020 to 04.07.2021, then in this second fragment - from 18.10.2019 to 02.07.2021, the message says.
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However, a representative of Delivery Club in a conversation with RIA Novosti in June 2022 said that there were no new data leaks.

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This data is part of a leak that was discovered by our security team at the end of May 2022. Delivery Club has introduced a set of measures to improve the security of internal systems, the company added.[3]
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There was a data leak of tens of thousands of couriers "Yandex.Food" and Delivery Club

At the end of May 2022, it became known about the leakage of data from tens of thousands of couriers Yandex.Eda and Delivery Club. According to the Telegram channel "Information Leaks," files containing more than 700 thousand lines of Yandex.Food courier data were published on the Internet, including surnames, names, patronymics, hashed passwords and phones, unique among them more than 585.2 thousand. Read more here.

Data breach of millions of users

On May 20, 2022, the Delivery Club food and food delivery service reported a leak of user data. As stated in the company, we are talking only about information about orders and do not affect bank details.

On the fact of the leak in Delivery Club, an internal investigation began, as a result of which an additional audit of internal systems will be carried out, a set of measures to increase the protection of which is already being used.

Delivery Club confirms data breach of millions of users
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We do everything possible to prevent the dissemination of data. We sincerely apologize to users, "the Delivery Club added.
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On May 20, 2022, the Telegram channel In4security wrote that the database contains 250 million lines that contain personal data of users, including their name, addresses and information about orders. This base is distributed free of charge, the report said. According to the authors of the Telegram channel, by May 20, 2022, a file of 1 million lines "walks through file sharing, which looks quite plausible." The file contains information about orders from 25.05.2020 to 02.07.2021, and the last technical record dates from September 7, 2021. The published data contains the following information:

  • The name of the customer
  • Phone number (827,758 unique numbers)
  • delivery address, including intercom code, floor and entrance number;
  • email address (183,852 unique addresses);
  • order composition and cost of services;
  • Client IP address (507,673 unique addresses).

According to the Telegram channel about information leaks and hacked databases of the Data1eaks, part of the personal data of Delivery Club customers became free on the network as of July 2021. The online file contains more than 500 fields with 1 million data, including first and last names, phones, delivery addresses with intercoms, email and other order details.

Roskomnadzor requested detailed information from Delivery Club about a possible leakage of personal data of customers, a representative of the regulator told Interfax.[4]

Rospotrebnadzor ordered Delivery Club to cancel the service fee

In March 2022, Rospotrebnadzor ordered Delivery Club to cancel the service fee, the service challenges the decision in court.

The main argument: the service fee is the fee for using the application, which is the result of the work of IT specialists, while the delivery fee is completely spent on paying for the work of couriers. Rospotrebnadzor refers to the fact that in accordance with the law "On the Protection of Consumer Rights" it is prohibited to condition the purchase of some goods (works, services) by the mandatory acquisition of others.

The applicability of this rule in relation to the service fee is now to be studied by the court. The service fee is also used by other Russian companies, including Yandex.Food, the main competitor of Delivery Club.

2020: Reduced fees for partners

On March 26, 2020, Mail.ru Group announced the allocation of a billion rubles to support medium and small businesses. Delivery Club will reduce the commission for all partners connected to the platform. Read more here.

2019

Most popular dishes of the year

Food delivery workers handed out backpacks with displays

On September 10, 2019, it became known that Delivery Club food delivery workers in Moscow began to distribute backpacks with displays.

These screens will show images of muffins, pizza, doughnuts and other popular food in the dark. In the future, dishes of specific restaurants may be displayed, as well as text special offers,

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We understand that couriers have become part of the urban environment and mainly visual delivery. The screens will help attract attention in the dark, plus they will radically distinguish our uniforms, the Delivery Club said in a statement.
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Delivery Club food delivery workers in Moscow began to distribute backpacks with displays

The company also noted that they do not plan to sell advertising, but did not rule out the appearance on the screens of special offers from partner restaurants.

For the first time, these devices were shown as part of two festivals - Delivery Fest in Moscow and Gastreet in Sochi. By September 10, 2019, about 100 backpacks with displays were distributed to couriers, they are used in test mode.

In June 2019, Delivery Club said that as an experiment it will distribute parts of couriers in Moscow, Krasnodar and Kazan backpacks with solar panels that will allow couriers to charge mobile phones. The battery power is 12.2 W, and the battery capacity is 6,000 mA·ch.

In September 2019, Delivery Club posted advertising posters in Moscow, information on which is visible only in the dark. Posters can be found on the territory of the Flacon design plant, the Basmanny Dvor cluster, the Paper Mill club, the Success bar and the Mutabor art space until September 20. Until the same day, promo codes are valid for a 35% discount.

By September 2019, the Delivery Club search and order service unites over 12 thousand restaurants of all price categories in more than 120 cities of the country.

Sberbank and Mail.ru Group signed an agreement on the creation of a Russian O2O services platform

On July 25, 2019, Sberbank and Mail.ru Group announced plans to create a Russian platform for O2O services (online-to-offline) in the field of food and transport. The joint venture will operate in the two largest digital consumer markets in Russia, the total volume of which will exceed 1 trillion rubles on the horizon of 3 years, with an expected average annual growth of more than 30%. Participation in the company will be distributed among partners in a ratio of 50/50 percent. Read more here.

Reducing the use of plastic utensils by delivery customers

On May 13, 2019, Delivery Club announced the start of an environmental program aimed at reducing the use of plastic utensils by delivery customers. Now, by default, cutlery is not included in the order, and those users who need them need to use a special filter, and only then select the number of appliances.

Delivery Club

In April 2019, Delivery Club, together with Research Me, conducted a survey of 3900 Internet users aged 12 and over from all federal districts of Russia and found out how they relate to disposable plastic dishes. 71% of the study participants expressed their readiness to completely abandon such dishes even if it remains in circulation.

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Those delivery users who order food home or to the office often have the option of using conventional appliances. As our study showed, Russians are ready to go to conscious consumption, and we will do it with them. If 71% of users really stop including dishes in orders, this will prevent the disposal of over 40 million plastic forks, knives and spoons per year.
'Ruslan Gafurov, Managing Partner of Delivery Club '
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The presented function is available to parts of Delivery Club users. The test period, during which not only customers, but also service partners will be informed about the update (the assembly of orders takes place in restaurants, their managers will also have to get used to the appearance of orders without devices), will last until the end of the month. Then the function will be available everywhere.

Countries European Union are completely phasing out single-use plastic utensils from 2021. On May 7, the development of similar measures was reported in. Ministry of Natural Resources RUSSIAN FEDERATION

2016: Mail.Ru Group buys Delivery Club

In November 2016, it became known that Mail.Ru Group acquires 100% of Delivery Club from foodpanda. Mail.Ru Group acquired 100% of Delivery Club for cash. The total amount of the transaction will be $100 million, with 90 million paid in November 2016 for 90% of Delivery Club, and the rest - in early 2017 for 10%. Mail.Ru Group will fully consolidate Delivery Club in its financial statements from the date of closing and will disclose its financial results on a comparable basis.

2011-2014

Subsequently, until 2014, the company increased the pace of development. In June 2014, the German company Foodpanda bought a 100% stake in Delivery Club.

Delivery Club later raised $10 million in investments.

In 2011, the company attracted outside investment from venture capital fund AddVenture.

2009

The company was founded by Levon Hovhannisyan and Anna Shkirina. They began working on September 1, 2009.

Notes