News

DoorDash Jumps Into LA Grocery Delivery

On-demand food delivery service DoorDash has expanded its offerings for customers in the Los Angeles area, Re/code reported late last week.

The startup is now delivering groceries from Whole Foods and Trader Joe’s, with a focus on providing prepared foods, like salads and sandwiches, rather than loose produce.

CEO Tony Xu told Re/code the move was simply a “quick test” and said “no partnership” is in place between the grocery stores and DoorDash. The test is also taking place in two other cities the company serves in an effort to learn more about customer behavior related to on-demand groceries, a DoorDash representative added.

Currently, the company focuses mainly on restaurant delivery.

“Through the DoorDash marketplace, people can purchase goods from local merchants and have them delivered in less than 45 minutes – thanks to our revolutionary logistics technology,” the DoorDash site explains.

“DoorDash has managed to grow in the particularly noisy and crowded restaurant delivery space, taking on slightly older companies like Caviar and Postmates. Investors who have backed the company praise its technology, which relies heavily on machine-learning algorithms,” Re/code said.

The company recently picked up $40 million in its latest funding round, led by venture capital firm Kleiner Perkins. Kleiner was joined by Sequoia Capital, Khosla Ventures and Charles River Ventures in the round.

DoorDash currently delivers in some of the country’s largest cities, including Chicago, Boston, Houston, New York City and Washington, D.C. In previous interviews, Xu has alluded to plans for the company to eventually grow into additional markets and delivery offerings.

If DoorDash decides to make groceries a more permanent part of its delivery service, it will go head-to-head with the likes of Amazon Fresh and Peapod, as well as market giant Instacart.

To check out what else is HOT in the world of payments, click here.

——————————–

Latest Insights:

Our data and analytics team has developed a number of creative methodologies and frameworks that measure and benchmark the innovation that’s reshaping the payments and commerce ecosystem. In the November 2019 Mobile Order-Ahead Report, PYMNTS talks with Dan Wheeler, Wahlburgers’ SVP, on how the QSR balances security and seamlessness to secure its recently launched WahlClub loyalty program.

Click to comment

TRENDING RIGHT NOW