The service is still available. Uber Eats and Deliveroo do partner with supermarkets and still offer grocery delivery service. They have their own issues that need to be addressed but the service is still there.
In principle I agree with the decision. Retail space should be reserved for retail and not warehouses.
I am not a city planner and don't know if these cities can do with more warehouses near the center. So perhaps there was an alternative solution but I don't want storefronts turning into dead space. This ruins the character of a city. And ghost kitchens should be next.