7-Eleven acquires majority stake in delivery business
The 7-Eleven Group has acquired a majority stake in Tipple, an on-demand delivery startup targeting the liquor market.
Tipple allows customers to order from their local bottle shop through its website and mobile app and have items delivered within 30 minutes.
Tipple’s proprietary technology platform sends orders directly to partner stores, algorithmically sorts them into optimal delivery routes and automatically assigns pickup and delivery to the closest available driver.
Since launching in October 2015, Tipple has grown to service more than 120 suburbs across Melbourne and Sydney, with more zones, cities and bottle shop partners targeted for the next 12 months.
While Tipple is taking aim at disrupting alcohol’s liquor market – currently dominated by Woolworths Group’s Endeavour Drinks Group, which recently launched an online marketplace, Endeavour Marketplace – the last-mile delivery technology is the true gem in the crown, as customers demand ever-quicker delivery and retailers look to shorten the time it takes to fulfil orders from stores.
7-Eleven CEO Angus McKay said as much in a statement about the acquisition, although he noted that the immediate focus of the partnership is on growing Tipple as a standalone business.
“While in time there may be interesting opportunities for the two businesses to explore and work together serving convenience customers, for now this partnership is about bringing our customer insights and marketing expertise to help accelerate the growth and expansion of Tipple as a standalone business,” he said.
Tipple founder and CEO Ryan Barrington welcomed the backing of Australia’s largest convenience retailer.
“We couldn’t be happier to be preparing for the next phase of Tipple’s growth alongside 7-Eleven,” he said.
“Their expertise and capabilities are unparalleled, but it’s our shared ambition to create new and engaging customer experiences on the cutting-edge of convenience that excites us most. We’re very excited about the potential for this partnership to transform the landscape of both alcohol and convenience retailing in Australia.”
Tipple was represented by Hillside Capital and Gadens as financial & legal advisors in the transaction.
Photo: (L-R) Matt Walsh, director, Tipple; Ryan Barrington, founder and CEO, Tipple; Angus McKay, CEO, 7-Eleven Group.