13cabs has partnered with Woolworths to deliver groceries, following a significant drop in demand for taxis

(Photo by Hugh Peterswald/Pacific Press/LightRocket via Getty Images)

13cabs drivers will be able to do deliveries for Woolworths.

Aussie taxi services provider 13cabs has partnered with Woolworths so its drivers can help address online delivery demand.

It comes after 13cabs rolled out its contactless, 24/7 delivery service 13things which offers transport for products like groceries or medicine. You order it in pretty much the same way as you would a cab, by either calling, using the app or accessing the website.

The 13cabs trial begins on Thursday at Woolworths supermarkets in Maitland, Swansea, Rutherford and Toronto. It will offer delivery seven days a week and is expected to expand across the country in coming weeks.

Andrew Skelton, CEO of 13cabs’ parent company A2B said in a statement he finds businesses are “taking more comfort” in the fact that drivers are professionally trained, registered and police checked as well as their vehicles being sanitised and equipped with gps tracking and safety cameras.

“The integration with Woolworths is a big moment for us,” he said. “We are a company with technologies, people and products that have evolved over 40 years to solve last mile transport problems for all Australians.”

The decline in taxi usage

13things said it is part of 13cab’s broader plan to meet the rising online grocery delivery demand.

Parent company A2B highlighted the declining demand for taxis amid the coronavirus pandemic in a statement to the ASX. It found that there is almost an 82% decline in public transport and a 72% drop in general travel. Plus, taxi fares processed in March fell 37% compared to 2019 and towards the end of the month and the beginning of April, the declines went above 80%.

“The measures that governments and organisations have put in place to contain the spread of coronavirus have significantly reduced economic activity including the number of taxi drips and associated payments,” A2B said in a statement. “This in turn has impacted drivers and operators across Australia including those in our 13cabs, silver service, maxi taxi and champ networks.”

The drop in taxi use has also led to 30% of A2B vehicles temporarily halting their service. On top of this, around 350 workers were stood down and branches in south west Sydney and northern Melbourne were shut.

Woolworths has also partnered with Uber

This latest partnership comes after Woolworths teamed up with Uber to assist with online delivery demand. With it, grocery orders are made on Woolworths’ website or app, which are then picked by Woolies staff and handed to Uber drivers. Orders, however, are capped at 40 items with delivery happening the next day.

At the time, Woolworths Director of E-Commerce, Annette Karantoni said in a statement, “The demand for our home delivery service has grown at an unprecedented rate across Australia in recent months. As the COVID-19 situation continues to evolve, it’s vital we keep scaling our delivery capacity to meet the essential needs of our communities.”

Earlier this month Woolworths CEO Brad Banducci said in a statement use of the Woolworths App has risen 320%, boosted by Aussies doing online shopping, checking out the supermarket’s digital catalogue or making plans to go into the physical shop.


READ MORE:

  • 13cabs is launching a new delivery service, turning cabbies into delivery drivers during the coronavirus crisis
  • Ola has launched a contactless parcel delivery service in Australia to send goods and alcohol across cities
  • Coles and Woolworths are axing purchase limits on items like toilet paper and tissues, as customer demand continues to ease
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