DoorDash, Grocery Outlet Team on Same-Day Grocery Delivery

DoorDash and retailer Grocery Outlet are looking to bring bargain prices to delivery customers through a new arrangement announced Monday (Aug. 15).

The companies’ partnership will facilitate the on-demand delivery of low-priced groceries from 398 Grocery Outlet locations in California, Maryland, New Jersey, Oregon, Idaho, Nevada, Pennsylvania and Washington, per the release.

Participating stores will also be available through a DashPass subscription, which offers a $0 delivery fee on orders above $35. In the press release, Grocery Outlet said it serves more than 1.5 million shoppers weekly at prices “typically 40% to 70% below retail price.”

“DoorDash is committed to providing customers with all the selection they crave at affordable prices, in a way that’s convenient for them and their families,” Shanna Prevé, vice president for business development at DoorDash, said in the announcement. “As consumers face rising prices, we’re thrilled to partner with Grocery Outlet to provide consumers across the country with a new way to purchase more affordable groceries while maximizing their budgets.”

Grocery Outlet Holding Corp. is based in Emeryville, California, and has more than 420 retail locations, according to the company. DoorDash said in the release that it has operations in more than two dozen countries.

“In addition to bringing more of our great products direct to consumers, our DoorDash partnership will help Grocery Outlet reach more customers with great prices during a time where every penny counts,” said Grocery Outlet CEO Eric Lindberg.

Earlier this month, DoorDash told investors that it is offering subscriptions to help drive revenue, as customers face inflated restaurant prices.

See also: DoorDash Takes Sting out of Delivery Costs With Subscription Offering

In an investor letter, the company said that it doesn’t believe “the [inflation-related] increase in subtotals had a meaningful impact on order volume in Q2, largely because of ongoing adoption of DashPass.” Additionally, DashPass adoption in the quarter was the second highest it had been in the past two years.