Yango Deli and City Market Form Strategic Partnership for Rapid Deliveries
Yango Deli and City Market have formed a strategic partnership to launch rapid delivery services from supermarket branches, aiming to expand operations and cut real estate costs.
Yango Deli, the rapid online grocery delivery service, has announced a strategic partnership with City Market, owned by businessman Yossi Schwartz, to launch fast delivery services directly from the supermarket chain's branches.
The collaboration is projected to boost Yango Deli's business volume by approximately 50 million shekels while strengthening City Market's purchasing power with suppliers through expanded procurement volumes and optimal utilization of physical store infrastructure.
In the initial phase, four new operational hubs will be established in northern and southern regions: Pardes Hana, Beersheba, Karmei Gat, and Netivot. These hubs will operate within City Market branches, serving as picking and dispatch centers for Yango Deli orders without the need to build independent dark stores.
This move marks a shift in Yango Deli's expansion strategy, opting for retail partnerships that cut costs and reduce capital expenditure on real estate and infrastructure. The company has set a target of reaching 30 operational points nationwide by the end of 2027.
The initiative comes roughly two months after Naama Alshech, formerly the deputy CEO of Shufersal Amiga, was appointed CEO of Yango Deli as part of her mandate to expand operations and solidify the network's market position. Alshech noted that combining City Market's infrastructure with Yango Deli's technological and logistical capabilities enables rapid market entry while maintaining operational efficiency. City Market founder and CEO Yossi Schwartz added that the synergy between the chain's local presence and Yango Deli's delivery capabilities creates mutual value and provides urban residents with accessible shopping solutions.
Meanwhile, the new Netivot branch opened last week with an investment of about 5 million shekels. Spanning approximately 700 square meters on Yehoshua Azulay Street in the Neve Sharon neighborhood, the branch features City Market's new design and commercial concept. This coincides with a strategic transaction in which the chain is selling 11 of its branches to the "100 and Beyond" retail chain for roughly 35 million shekels.
For Yango Deli, this represents a significant expansion following the recent launch of its 17th branch in Netanya, which includes a convenient pick-up service for customer self-collection.
