Online Grocer Farmstead Goes National With DoorDash

Online grocer Farmstead announced a new partnership with DoorDash as the California-based firm works toward a nationwide expansion.

The company said in a Tuesday (April 13) news release that the partnership will have three elements. First, the brand will be available through DoorDash for one-hour deliveries in all Farmstand markets, including its planned 15-city expansion, covering 75 percent of the grocery market.

Second, DoorDash will incorporate Farmstead’s Grocery OS, giving any grocer using the operating system access to DoorDash’s platform and delivery network.

Finally, grocers will be able to list their own brands powered by dark locations on the DoorDash app/website for one-hour deliveries.

The announcement comes as Farmstead has concluded raising $7.1 million to fund its nationwide expansion.

“Farmstead’s business has grown significantly while hitting per-order profitability milestones — the company doubled its Bay Area delivery radius, expanded from its home base in Northern California to Charlotte and will launch service in Raleigh-Durham, Nashville, Miami and at least 13 other cities in 2021,” the company said in the news release.

Farmstead’s chief executive says the deal will make online grocery delivery more accessible and affordable for more people.

“Together, Farmstead and DoorDash can remove the two biggest barriers to grocery e-commerce success: order picking and packing efficiency, and low-cost, high quality delivery with a production capacity of thousands of orders per day,” said Pradeep Elankumaran, company co-founder and CEO. “Farmstead’s Grocery OS facilitates efficiency inside the warehouse, and DoorDash provides the last-mile delivery logistics and marketplace platform to reach consumers.”

As PYMNTS reported last week, industry experts predict the demand for online grocery solutions will not go away even as people resume their pre-pandemic shopping habits. Consumers have gotten used to the safety and ease of getting groceries virtually, leading investors to pour substantial sums into online grocers.