Israeli Delivery Startup HAAT Partners With Paz Group to Challenge Wolt

Israeli delivery company HAAT is making a significant move into the daily grocery market through a new partnership with the Paz Group, integrating the group's Yellow convenience stores into its app. This collaboration will initially launch in select locations including Jaffa, Haifa, Givat Iron, and Wadi Ara, with plans to expand nationwide and include Paz's supermarket chains, Super Yuda and Freshmarket.

This expansion marks a major step for HAAT, which began by focusing on local businesses and restaurants, particularly within the Arab community, and now aims to become a broader platform for everyday shopping. The integration with major national brands is expected to broaden HAAT's product offerings and reach new customer segments.

The partnership is particularly noteworthy given Paz's ongoing efforts to acquire "Wolt Market" for approximately NIS 250 million. This dual strategy could see Paz operating on multiple fronts: acquiring Wolt's supermarket operations, continuing to sell through the Wolt app, and simultaneously fostering competition via its collaboration with HAAT.

HAAT has differentiated itself by catering to the needs of the Arab community, offering solutions like mapping for homes without official addresses and cash payment options. Its established infrastructure of customers and delivery personnel allows for expansion without starting from scratch. The company secured NIS 60 million in funding in April at a valuation of NIS 310 million, with investors including Israel Post and Lyman-Schlissel.

HAAT continues to compete with Wolt on operational models and pricing. HAAT's average delivery fee ranges from NIS 14 to 18, compared to Wolt's NIS 14 to 24. While Wolt offers a NIS 29 monthly subscription for free deliveries (Wolt+), HAAT does not currently provide a similar service. HAAT charges restaurants a commission of around 23%, lower than Wolt's approximately 27%, which may translate to lower menu prices for consumers. HAAT also allows cash payments to delivery drivers, unlike Wolt's digital payment methods. Wolt boasts a wider restaurant selection and a strong presence in Tel Aviv, whereas HAAT offers a smaller selection but has a stronger foothold in the periphery and Arab communities, while expanding into central Israel.