The Zapp Model: Reinventing Ultrafast Delivery and Its Unfolding Journey
The story of Zapp is a fascinating case study in the world of ultrafast delivery startups—a sector defined by speed, convenience, and fierce competition. It was going a variation of normal delivery platforms for groceries and essentials – rapid-on-demand delivery. Speed was the main driver. There was also a second variation – their treatment of their workers.
Launched in London in 2020, Zapp set out to challenge the norms of the gig economy, aiming to build a company that stood apart from its rivals not just in delivery times, but in how it treated its workforce and the planet. This is the tale of how Zapp started differently, why it mattered, and what its journey reveals about the future of ultrafast delivery.
A Bold Beginning in London
When Zapp first appeared on the London scene, it entered a city already known as a playground for ambitious startups. London’s dense population, tech-savvy consumers, and appetite for convenience made it the perfect testing ground. From there, Zapp quickly expanded to other UK cities like Manchester, Cambridge, and Bristol, before making its way to Amsterdam and Paris. The company’s founders, Joe Falter (formerly of Jumia) and Navid Hadzaad (an Amazon alum), brought deep tech credentials and a vision to disrupt the status quo.
Zapp’s leadership team was a who’s who of delivery and retail experience, drawing talent from Deliveroo, Tesco, Just Eat, and Domino’s. Their mission: to deliver groceries and essentials to your door in as little as 10 minutes—a promise so fast that you could order, take a shower, and hear your doorbell ring before you’d even finished drying off.
The Gig Economy—And Zapp’s Big Difference
At first glance, Zapp looked much like its ultrafast delivery competitors. It operated “dark stores”—local warehouses stocked with essentials, ready to fulfill orders at lightning speed. But there was a crucial difference: Zapp’s delivery riders were not gig workers or independent contractors. Instead, they were employees, entitled to the same rights and benefits as staff in any other company.
This was a radical departure from the norm. The gig economy, after all, is built on flexibility and independence—workers choose their hours, work as much or as little as they want, and are paid per delivery or ride. For many, this model is attractive, especially for students or those seeking to supplement their income. But it also means a lack of job security, benefits, and protections.
By classifying riders as employees, Zapp took on higher costs—payroll taxes, pension contributions, paid holidays, and more. It was a bold, expensive bet, but one that immediately set Zapp apart. The company’s stance attracted the attention of major investors, including a sovereign wealth fund, who saw in Zapp a chance to back a more ethical, sustainable business model.
Why Zapp Chose a Different Path
What drove Zapp to break with the gig economy? Several factors likely influenced the decision:
· Regulatory Pressure: Across Europe, lawsuits and regulatory scrutiny were mounting against gig economy companies. Governments, unions, and activists were pushing for better protections for gig workers, and some competitors were being forced to reclassify their workforce as employees. Zapp’s model may have been a way to get ahead of the curve, avoiding costly legal battles and positioning itself as a responsible employer.
· Brand Differentiation: By offering permanent employment, Zapp could attract a broader pool of candidates—including those who wouldn’t consider gig work. This approach also helped build a brand identity rooted in fairness and quality, appealing to customers and employees alike.
· Sustainability and Ethics: Zapp’s commitment to being “fair on the planet” was more than a slogan. The company launched with an all-electric fleet of e-bikes and e-mopeds and used sustainable packaging. This focus on environmental responsibility resonated with younger consumers, who are increasingly willing to pay more for ethical and sustainable products.
Building a Brand for the Next Generation
Zapp’s approach was about more than just fast delivery. It was about creating a brand that stood for something—fairness to workers, sustainability, and a new way of doing business. The company’s all-electric fleet and eco-friendly packaging were not just good PR; they were integral to its identity. In this sense, Zapp’s rise mirrored the growth of vegan and plant-based products: a niche offering that, thanks to changing consumer values, quickly went mainstream despite higher prices.
This ethical stance helped Zapp attract investors who cared about more than just profits. For them, Zapp was a chance to support a business that could lead the way in responsible innovation.
The Competitive Response
For a time, Zapp’s employee-first model gave it a unique selling point. But the landscape was shifting fast. By early 2021, regulatory changes and court rulings in Europe forced many competitors to offer similar benefits. Just Eat, for example, rolled out the “scoober model” in 12 European markets, providing employee benefits to its couriers through third-party employment contracts. Other major players, like Getir, followed suit.
As employee benefits became the norm, Zapp’s primary differentiator faded. The playing field leveled, and the company’s higher operating costs became harder to justify. Meanwhile, the flexibility that once defined gig work was preserved—contracts ranged from casual and part-time to full-time, with hours as low as six per week. The industry was evolving, but not in the way Zapp had hoped.
The Challenges of Scaling
Despite a successful Series B funding round that raised $200 million, Zapp soon faced headwinds. By mid-2022, the company began withdrawing from several UK cities, including Bristol, Manchester, and Cambridge, consolidating its operations in London. Redundancies followed, and recruitment slowed to a trickle.
The situation worsened in the Netherlands, where new zoning laws targeted “dark stores” operating in residential areas—a key part of the ultrafast delivery model. With regulators cracking down, Zapp withdrew from the Dutch market, leaving only London and Paris.
The company’s rapid expansion had stalled, and its funding paled in comparison to larger rivals. Without the scale or resources to weather prolonged competition, Zapp’s future looked uncertain. The likelihood of being acquired by a bigger player increased by the day.
The Dark Store Dilemma
Zapp’s struggles highlight a broader issue facing the ultrafast delivery sector: the reliance on dark stores. These local warehouses are essential for meeting 20-minute delivery promises, but they also create noise, traffic, and disruption in residential neighborhoods. As cities across Europe tighten zoning laws, the very foundation of ultrafast delivery is under threat.
The Netherlands led the way in enforcing new regulations, but other countries are likely to follow. The days of the dark store may be numbered, forcing companies to rethink their models or face extinction[1].
What Comes Next for Ultrafast Delivery?
The challenges facing Zapp are not unique. Across the industry, smaller players with limited funding and scale are struggling to survive. Market consolidation seems inevitable, with only the largest, best-funded companies likely to endure.
Looking ahead, the ultrafast delivery model may need to evolve. Delivery times could stretch from 20 minutes to an hour, with higher fees to cover rising costs. The dream of instant gratification may give way to a more sustainable, profitable approach.
It’s worth noting that, with rare exceptions, none of the ultrafast grocery delivery startups have reported profits. Even Getir, a Turkish giant, is profitable in only one of the nine countries where it operates. Investors are growing impatient, and the sector’s future is far from certain.
Lessons from Zapp’s Journey
Zapp’s story is a reminder that innovation is about more than technology or speed—it’s about values, people, and adaptability. By treating its riders as employees and prioritizing sustainability, Zapp showed that it’s possible to build a business with a conscience. But in an industry defined by razor-thin margins and relentless competition, even the best intentions may not be enough.
As the dust settles, Zapp’s legacy may be as a pioneer that forced the industry to change—for the better. Whether it survives as an independent company or is absorbed by a larger rival, its impact will be felt in the way delivery companies treat their workers and the planet.
The ultrafast delivery revolution is far from over, but its next chapter will be shaped by the lessons learned from bold experiments like Zapp..