Albertsons said yesterday that it is partnering with delivery service DoorDash to offer on-demand delivery of more than 40,000 SKUs from close to 2,000 of its stores under various banners.
According to the announcement, "Consumers can shop right on the DoorDash app to fulfill all of their grocery needs … In addition, in select markets, customers can order groceries through their local Albertsons Cos. store’s website for same-day delivery powered through DoorDash Drive, DoorDash’s white-label fulfillment platform that powers direct delivery for any business."
And, Albertsons said: "The partnership includes both immediate and long-term initiatives, including supporting the expansion of Albertsons’ first-party grocery delivery business with DoorDash Drive, launching a custom loyalty program, expanding delivery hours, and offering a unique selection including specialty items, prepared meals, meal kits and new concepts.
"In addition, DoorDash and Albertsons Cos. are offering a first-ever digital gaming experience, giving users the chance to play and score savings on future grocery orders."
“We are committed to expanding our delivery experience in order to meet our customers’ needs whenever, wherever and however they want,” said Chris Rupp, Chief Customer and Digital Officer at Albertsons. “Our partnership with DoorDash is the next step in our digital transformation to help make our customers’ lives easier and help answer the perennial question, 'What’s for dinner tonight?'"
Bloomberg writes that the deal puts DoorDash in direct competition with Instacart, which also delivers for Albertsons:
"DoorDash dominates U.S. food delivery and increased its market share over rivals such as Uber Technologies and Grubhub amid the shift to ordering from home as the coronavirus pandemic shuttered indoor dining. However, even as cities reopen, demand for food delivery has remained resilient, with DoorDash nearly tripling revenue during the first quarter. Since then, DoorDash has pushed into new business lines such as retail — through a partnership with Bed Bath & Beyond in May and most recently PetSmart — as well as expanded convenience-store offerings, in an effort to capture more customers now accustomed to fast, on-demand delivery."
- KC's View:
Perhaps, if there are numerous delivery entities providing groceries from a supermarket, it reduces the possibility that one delivery brand could disintermediate the retailer from the shopper relationship. But only perhaps. It also could be that the retailer will become more detached from the process, though it appears that Albertsons and DoorDash are taking. amore integrated approach.
But since DoorDash already has created its own convenience retail entity - DashMart - I have to wonder where its priorities are. Are companies like Instacart and DashMart delivering for Albertsons? Or are they really working to deliver for their investors?
It may not be the same thing.