An online grocery store which sells goods that would otherwise be sent to landfill is growing in popularity in the UK, as cash-strapped Brits search for new ways to save money amid the cost of living crisis.
“I think there’s a lot of focus on price at the moment… and we can cater for something very unique,” Karl Andersson, chief and founder of new online supermarket, Motatos, told City A.M.
The Swedish entrepreneur first launched the company in 2014 to tackle food waste expanding quickly across Europe but only launched in the UK last year, with the site attracting 10,000 new customers each month.
Motatos, which has so far raised €130m (£112m) from impact and venture capital investors, works largely with brands such as Heniz and Nestle to sell their products which may use old packaging or be slightly past their sell-by date at heavily discounted prices.
“Most of the volume we buy today is stock that is kind of out of season… so we are selling a lot of Easter labelled items at the moment,” Andersson explained.
“A smaller part of our shop is selling short-dated goods and that’s where the best before date is less than 60 or 90 days,” he added.
With grocery inflation standing at 17.2 per cent, the third fastest rate of growth since 2008, Motatos sells kitchen staples such as ketchup and cereal at more affordable rates than discounters like Aldi and Lidl.
Shoppers on Motatos can buy two bottles of reduced sugar Heinz Tomato Ketchup for £2.30, while Aldi retails the singular product for £3.99.
Moreover, one pack of Nestle’s Shredded Wheat is available on Motatos for £1.80, while ‘Big Four’ grocer such as Tesco sells the cereal for £3.20.
“We have a wide spectrum of customers. On one hand we have customers that are buying from us because we’re doing something good for the environment and on the other one that simply buys from us because they are on a budget,” Andersson said.
As a tough supermarket price war continues to play out in front of consumers, Andersson considers Motatos a “disruptor” in the sector.
“We are a disruptor in many ways, especially [helping consumers change their view] on food waste and how they view the food system,” Andersson said.