Buyk: Russians launched instant grocery delivery in Manhattan

Buyk's instant grocery delivery service - operated by the Russian company Samokat - launched on August 27 in New York, according to company Facebook page. “We are now delivering goods in Manhattan, but we are growing rapidly,” the post says.

Samokat, Russia's largest instant grocery delivery service on orders, aims to be the first of its kind to take its place in the fast-growing US market.

The founders of the St. Petersburg company have just launched a service called buyk in New York, but by the end of the year they plan to process 10 orders per month.

Buyk promises to deliver the products ordered by the user within 15 minutes. At the same time, the service does not charge delivery fees and does not set a minimum order amount, emphasizing that their prices are "like in a convenience store."

Having announced its intention to enter the US market in June 2021, Samokat raised $ 46 million in investment to launch Buyk.

The Samokat brand was founded in 2018 by former top managers of Russian Post and Magnit Vyacheslav Bocharov and Rodion Shishkov. The third co-founder is Sergey Sulgin, the former CEO of Arrival.

“We understand that New York is more expensive. But there are also higher order amounts, ”said Vyacheslav Bocharov in June, commenting on the company's plans to enter the American market.

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During the pandemic, food delivery became popular all over the world. Customers ordered food self-isolating and avoiding crowded places. In Russia, orders have increased 2019 times since 14. There "Samokat" is one of the three leaders in terms of sales.

Competitive market

Buyk entered the crowded and highly competitive US market. He will have to compete with such giants as Instacart, Walmart, Amazon and DoorDash. The latter is the leader in the delivery of orders from restaurants in the United States. He also switched to the delivery of groceries and everyday goods.

In addition, there is FreshDirect. It is a well-established grocery delivery company with nearly twenty years of history in New York City.

Buyk has permission to open dark stores in New York. These are small warehouses that will help the company to quickly fulfill orders. According to representatives of the food delivery industry in Russia, Buyk has the advantage of knowing "how to quickly scale a project in new cities." But the big problem can be that in New York it is impossible to use such cheap labor as they are used to in Russia.

Samokat pays its couriers in Russia an average of 190 rubles per hour ($ 1,50). In the United States, the average hourly wage for food and grocery drivers is around $ 16.

Buyk will use the same technology in New York as Samokat in Russia. Buyk is currently offering free shipping. Couriers deliver goods on bicycles within a radius of 1,5 km (about 1 mile).