Shopping app InstaShop is diving into the bulk-buy market with its new initiative that is going to up the competition in the e-commerce space.

The Dubai-based grocery delivery platform said on Sunday that its “Value on Demand” is “going head on” with pure online players in the likes of Amazon.

The new offering will allow customers to bulk buy at discount rates some items that are sourced directly from partners, including Unilever.

The orders will be dispatched from “micro-fulfilment centres”, the first of which will be launched in Jumeirah Lakes Towers (JLT).

“Most of our partner shops are unable to store large e-commerce items due to physical space limitations. The delivery of such items is often a challenge as well, since most retailers deliver by foot, car or motorbike,” said John Tsioris, CEO of InstaShop.

“To cover this gap and make sure InstaShop users can satisfy all their grocery needs on our platform, we have identified that the delivery of bulky products at a discount is of importance,” he added.

In a statement, InstaShop said it would introduce new technology that would support the launch of its micro-fulfilment centres.

“This will ensure the strong position of our partners for years to come and allow them to expand their business and compete with the likes of ‘pure online players’. The first micro-fulfilment centre will be launched in Jumeirah Lake Towers, operated by InstaShop as a pilot in order to optimise and streamline the processes.”

Products on offer will include large boxed items such as nappies or other groceries.

InstaShop was acquired by German firm Delivery Hero for $360 million earlier this year.

The app was launched in Dubai in 2015 as a quick commerce (q-commerce) or same-day initiative, and has since expanded in the region.

(Writing by Imogen Lillywhite; editing by Cleofe Maceda)

Imogen.Lillywhite@refinitiv.com 

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