Coronavirus (COVID-19): D1 partners with third parties to enable home delivery

Date : 30 March 2020

Oliver Butterworth

Retail Analyst

Colombian discount retailer D1 has formed alliances with two online delivery platforms, Mi Aguila and Picap, to offer customers home delivery during the coronavirus epidemic.

Initially 2,000 motorcyclists from Picap’s Pimarket service will be used and close to 2,000 drivers from Mi Aguila (My Eagle). The alliances were launched in Colombia’s capital city, Bogotá, on Saturday 28 March and will expand to the rest of the country’s cities over the next few days.

Source: Mi Aguila LinkedIn

D1 stores follow the hard-discount model, which allows the business to sell basic, mostly ambient groceries and commodities at very low prices. Typically, hard discount stores do not offer their own home delivery solution, as the low margins and cost of a delivery infrastructure would make it unprofitable. Therefore, collaborating with established digital delivery companies is a great option for fulfilling deliveries.

Health and beauty essentials in a D1 store

Source: IGD Research

Fernando González, president of Koba Colombia (owner of D1) said the main purpose of the alliances is “to ensure the population's access to the greatest quantity of basic goods during [these times], is at the same time a way to allow thousands of jobs linked to the transport sector to continue generating income while contributing to social well-being".

Encouraging customers to stay at home

The initiative encourages customers not to leave their homes to visit a D1 store, helping to prevent the spread of coronavirus. In its marketing D1 is using the hashtag #QuédateencasaconD1, ‘stay home with D1’.

Source: Koba International LinkedIn

D1 will pay staff an extra 10%

Koba Colombia has announced it will recognise the efforts of its workers by giving them a bonus to their salary. Staff working in both stores and distribution centres nationwide will receive an extra 10% for March and April. It said it will continue this for the duration of the situation. 

“At Tiendas D1, we are aware of the importance of all Colombians accessing the different necessities. Therefore, since the crisis began in the country, we have increased all our operational efforts to rise to this situation. This incentive is one more way to thank the excellence and professionalism with all our staff has allowed the stores to continue operating" Fernando González.

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