DoorDash Dives Into Grocery Delivery Business

Delivery powerhouse DoorDash has entered the grocery business, the company announced on Thursday (Aug. 20).

The service is launching on the West Coast and in the Midwest. San Francisco, Los Angeles, Orange County, Sacramento, San Diego and California Central Coast customers can order from Smart & Final. Chicago, Cincinnati, Milwaukee, Detroit and Indianapolis customers can order from Meijer and Fresh Thyme.

Chains Hy-Vee and Gristedes/D’Agostino will be next, DoorDash said in its announcement, putting 75 million Americans in areas where grocery delivery will be available. The company said that more than 10,000 grocery items will be available for delivery.

By entering the space, DoorDash is positioning itself to compete with existing players including Instacart and Amazon's Prime Pantry.

Smart & Final Director of Digital Commerce Navin Cotton said in a prepared statement: “DoorDash provides another convenient way for customers to get the value, selection and quality that Smart & Final offers, especially at a time when some are looking to limit trips outside their homes. DoorDash’s on-demand grocery service is a nice addition to our online shopping options, and with delivery in under an hour, we know Smart & Final customers are going to appreciate it.”

Hy-Vee’s Senior Vice President for eCommerce Tom Crocker said in a prepared statement: “This latest announcement by DoorDash is another tool that allows our customers timely access to the fresh offerings that we provide at Hy-Vee. In today’s ever-changing environment, customers want quality products delivered in an efficient manner straight to their homes. This new service helps us grow our grocery business while meeting the needs of our shoppers who are on the go.”

Today's grocery chain announcement is just the latest in a string of business expansions DoorDash has made public recently. Earlier this month, the company said it was launching digital convenience stores, branding the service DashMart.

And in mid-July, DoorDash and Walgreens announced a home delivery partnership covering many non-prescription items. The service launched in Atlanta, Chicago and Denver.

A June fundraise put San Francisco-based DoorDash's market capitalization at about $15 billion, but the company's rapid growth has come with challenges. As with many companies that rely on gig economy workers, DoorDash has faced legal headaches when it comes to employee status.



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