Boots has made a significant update to its Advantage Card scheme, offering customers new ways to earn points.
According to DevonLive, this change allows shoppers to earn one point for every £1 spent on deliveries via Uber Eats and Deliveroo, as long as they enter their Advantage Card number during checkout.
However, it’s important to note that the points are calculated based on the cost of the items only, excluding delivery or service fees.
New Benefits for Customers
Paula Bobbett, Boots’ Chief Digital Officer, expressed her enthusiasm for the revamped scheme. She highlighted that this new feature not only provides the convenience of delivery directly to customers’ doors but also allows them to earn Advantage Card points on their orders.
Not only can they enjoy delivery to their door in as little as 20 minutes, but they can now also earn Advantage Card points on their purchases, meaning that they can treat themselves later too. – She said
The update marks a significant enhancement to Boots’ Advantage Card Scheme and digital and delivery offerings, reflecting the growing importance of quick and easy home delivery services in the retail landscape.
Expanding Digital Partnerships
Boots first entered into a partnership with Deliveroo in 2021, initially rolling out the service across 14 stores as part of a trial.
By 2022, the health and beauty retailer extended this partnership to Uber Eats, offering delivery of beauty essentials and healthcare products in as little as 30 minutes through its Advantage Card Scheme.
This latest update expands the options available to Boots customers, aligning with broader trends in the retail industry where convenience and speed are becoming key factors in consumer decision-making.
The Growing Role of Delivery Platforms
This announcement follows a similar move by the Co-op, which also extended its partnership with Uber Eats for three more years.
These collaborations are part of a larger trend where retailers are increasingly relying on third-party platforms like Uber Eats and Deliveroo to reach customers who prefer the ease of online shopping and quick delivery.
While Boots is expanding its digital presence, other companies are also betting on the future growth of grocery and essentials delivery. For example, Deliveroo has been diversifying its services beyond food, adding categories such as health, pet food, and DIY supplies.
Last year, grocery orders accounted for 16% of Deliveroo’s gross transaction value through its Advantage Card Scheme.
Deliveroo’s Financial Outlook
Deliveroo has recently reported a £2.9 million profit for 2024, marking its first-ever full-year profit. This marks a significant turnaround after suffering a £31.8 million loss in 2023.
Despite this positive development, CEO Will Shu acknowledged that the economic environment remains uncertain, particularly with rising costs linked to changes in the minimum wage and employer taxes.
You’re talking about some pretty significant increases in their cost base – he said
“We’re seeing good momentum in the UK but added:
We don’t know what’s going to happen in April. We’re going to see inflation again … Do people put prices through to the consumer?
Deliveroo has also seen a 2% increase in both revenue and order frequency, showing improved customer retention and continued growth across the group, including in markets like France, Italy, and the UAE.
Shu pointed out that growth areas for Deliveroo include the addition of new product categories like DIY, health, and pet food, thanks to partnerships with companies such as B&Q and Boots’ Advantage Card Scheme.
Deliveroo’s broader diversification strategy is positioning it for future expansion in the non-food delivery space.
Will Shu also predicted that grocery delivery could eventually surpass takeaway food orders, as customers increasingly look to services like Deliveroo for a wider range of products.
The company’s ability to deliver everything from beauty products to groceries reflects this shift toward more comprehensive shopping experiences available through quick delivery services.
