Visa The Embedded Lending Opportunity April 2024 Banner

DoorDash and Aldi Expand Partnership to Offer ‘Safe’ Alcohol Delivery

Aggregators Oppose Wage Increase, Low Pay Threatens Retention

DoorDash has expanded its alcohol delivery partnership with Aldi to 1,200 stores in 21 states.

The updated collaboration, announced in a Monday (Sept. 18) press release, is part of a larger expansion of the delivery platform’s services as rival Instacart prepares to go public.

DoorDash and Aldi have worked together since earlier this year and said in the release their latest effort will offer “safe, age-verified” alcohol delivery to 80% of DoorDash customers.

“On DoorDash, adding alcohol may increase grocers’ average order value by up to 30%,” DoorDash Vice President of New Verticals Fuad Hannon said in the release. “Order values for U.S. convenience orders were on average over 50% higher when alcohol was added.”

Also Monday, DoorDash said it is expanding its grocery selection with eight new retailers: CUB, Eataly, El Super, Fiesta Mart, Lowe’s Markets, Pruett’s Food, Stater Bros. Markets and Strack & Van Til.

“We’ve made significant progress in investing in long-term partnerships with grocers of all sizes, all while remaining focused on improving quality and execution,” Hannon said in a separate press release. “The grocers announced today recognize DoorDash as a source of incremental growth, accelerating what we believe to be the fastest-growing platform for grocery in North America.”

PYMNTS Intelligence found that online grocery occupies a relatively small percentage of the total grocery market, although that share is rising.

The study “Tracking the Digital Payments Takeover: Catching the Coming eCommerce Wave,” created in partnership with Amazon Web Services, found that 12% of grocery transactions happen online. The study also found that roughly 33% of shoppers said they are very or extremely likely to increase their online grocery purchases in the next year.

DoorDash has been steadily growing its grocery business.

“Over the last two and a half years, we’ve built a multibillion-dollar grocery business from scratch, and it was really ready for primetime exposure,” DoorDash CEO Tony Xu told analysts on an earnings call last month. “…We now have more non-restaurant stores on the platform in North America [than] any other platform. We’re growing faster than every other platform and gaining share dramatically in virtually all categories, and very specifically also in grocery.”

For all PYMNTS retail coverage, subscribe to the daily Retail Newsletter.