Freshippo offers fresh take on traditional breakfast
Shanghai Vice Mayor Xu Kunlin (center) is joined by Shanghai Commerce Commission officials and other executives in launching the Pick'N Go stores.
Staff prepare food in the Pick'N Go store at Yishan Road Metro Station on Wednesday.
A smaller spinoff of Alibaba's flagship online retail grocery Freshippo is targeting breakfast and takeaway food for office workers and commuters in Shanghai.
The first batch of six Pick'N Go stores are open today for pick-up service only. The stores are located in Huangpu, Xuhui, Minhang, Putuo and Changning districts.
Freshippo will expedite the expansion of Pick'N Go stores and aims to add some 60 new stores in the city's central business districts and locations near Metro stations by the end of this year and eventually reach 1,000 stores in three years.
Consumers can place breakfast orders via mobile apps and then pick up their food within 10 to 15 minutes from designated delivery lockers.
Shanghai office worker Crystal Cheng who has been ordering food and grocery delivery from Freshippo decided to try steamed buns and soy milk for breakfast today. "I don't have to wait for food to be prepared at quick service chain restaurants or convenience stores."
At the Pick'N Go store at Xuhui Guangqi City, a total of 24 delivery lockers are available for customers to pick up breakfast after ordering from their smartphones.
After trial operations of one year in Yangpu District, the company decided to operate smaller formats with limited product selection, according to Hou Yi, chairman of Freshippo and head of Alibaba’s digital food unit.
"With only 30 to 40 square meters of space and no dine-in area we can achieve higher efficiency compared with other kinds of grocery or convenience stores," Hou added.
Dozens of products such as Shanghai-style dim sum and soybean drinks are currently available during breakfast hours with prices starting from 5 yuan (72 US cents). Sandwiches and other lunch and snack items are also available.
The city announced earlier this week that it would encourage mobile breakfast vans, making it easier for them to register as small catering service suppliers.
In some downtown office areas and community neighborhoods, delivery lockers originally designed for courier packages are being modified for food takeaway.
Street stalls and grocery stores in the early morning and late evening are showing fresh signs of recovery as business and consumer sentiment rebounds.
Meituan said that more than 90,000 small businesses opened on its delivery site last month, and total transaction volume of small and micro food vendors increased 23 percent from a month ago. Spending made after 8pm accounts for 40 percent of overall revenue.
Digital infrastructure has been crucial in recent years as small independent stores which do not belong to retail chains or franchises often rely more on platforms to reach food takeaway consumers.
