Picnic, an Amsterdam-based online supermarket, has successfully raised €430 million to propel its ambitious growth strategy. This significant funding is poised to aid Picnic in expanding its operations notably within Germany, where the company asserts a leading position. Picnic showcases a shared vision for a unified European online grocery network, bridging collaborations across countries to enhance online grocery shopping experiences. The company’s initiative continues to secure its place in the competitive online retail space.
Picnic’s journey has been marked by previous expansions, notably to Germany in 2018 and France in 2021, with the Netherlands serving as a profitable base. Each market entry is strategic, reflecting the company’s overarching mission of low-cost, efficient grocery delivery. Earlier investments and expansions highlighted the potential risks and rewards of tapping into diverse European markets, contrasting with some counterparts facing challenges in achieving sustainable scalability.
Is Germany the Next Big Market for Picnic?
With approximately five times the population of the Netherlands, Germany presents a massive opportunity for Picnic. To effectively penetrate this market, considerable investment into infrastructure akin to that in the Netherlands is necessary. The company has experienced accelerated growth since its German debut, establishing a substantial customer base. Being operationally profitable in the Netherlands, Picnic aims to replicate this success in Germany.
How Will Picnic Utilize Its Latest Investment?
The newly raised capital will enhance Picnic’s distribution network, addressing the logistical complexities of reaching new regions. This includes further developing their distribution centres, with current efforts focused on introducing robotic innovations like the robopicking facility in Oberhausen. By implementing visual AI, this facility aspires to improve efficiency and accuracy in handling over 15,000 different products, exemplifying Picnic’s commitment to technological advancement.
Picnic’s introduction of automated systems in its warehouses serves as a testament to its focus on improving operational efficiency and customer satisfaction. With tasks ranging from picking fragile items like eggs to handling robust products like olive oil, visual AI plays a crucial role by mimicking human vision, potentially reducing errors and enhancing customer service quality.
“A carton of eggs needs to be handled differently than a bottle of olive oil. Visual AI is used for this, which mimics human vision,” stated Michiel Muller, co-founder of Picnic.
The concept of Picnic was architected in 2015 by its founders who dedicated three years to develop a route-optimized delivery model. The system eliminates superfluous steps, delivering groceries directly, efficiently, and without additional cost. Through leveraging technology and collaboration, Picnic aims to position itself as a formidable player in the online grocery sector.
“The collaboration between software developers and operational staff from both countries demonstrates the strength of cross-border cooperation and the building of a European market leader in online grocery shopping,” Muller further commented.
