DoorDash is ramping up its presence in the grocery delivery sector, adding eight new store partners to its marketplace.
The move comes on the heels of Instacart going public and as industry-wide competition heats up, as meal delivery services add more retailers to their rosters.
Stores added to the DoorDash marketplace include Cub, Eataly, El Super, Fiesta Mart, Low’s Markets, Pruett’s Food, Stater Bros. Markets and Strack & Van Til.
- Cub—79 locations throughout Minnesota, as well as from 31 Cub Wine & Spirits and Cub Liquor locations.
- Eataly—Seven stores in New York City, Boston, Chicago, Dallas, Los Angeles and Silicon Valley locations.
- El Super—65 locations across California, New Mexico, Nevada, Arizona and Texas.
- Fiesta Mart—59 locations in Texas in Houston, Dallas and Austin.
- Pruett’s Food—10 locations in Oklahoma and Arkansas.
- Lowe’s Markets—locations throughout Texas, New Mexico, Colorado, Arizona and Kansas.
- Stater Bros. Markets—170 stores throughout Southern California.
- Strack & Van Til—22 locations throughout Northwest Indiana and Illinois.
DoorDash, which began offering grocery delivery in 2020, also redesigned its consumer app in June with a dedicated Grocery tab, which aims to make shopping and discovering new options “more convenient, reliable and personalized.” The expansion also follows DoorDash’s recent partnership with ALDI’s, bringing grocery delivery to nearly all ALDI locations nationwide.
“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. 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,” said Fuad Hannon, VP of new verticals at DoorDash. “We strive to be the rising tide that lifts all boats—driving growth for retailers while helping consumers stock up on groceries whenever and however is best for them.”
On-demand grocery wars
Amid Instacart’s IPO (the current leading grocery aggregator) and DoorDash’s grocery expansion, other players are making market share moves. Uber Eats recently announced a partnership with The Fresh Market Inc., to offer grocery delivery from an additional 161 stores across 22 states in the U.S. Uber also partnered with Modesto, a California-based grocer, adding more than 109 Save Mart, Lucky and FoodMaxx stores to its marketplace.
Instacart announced its initial public offering (IPO) Tuesday, starting at $42 a share.
In its initial filing, Instacart released data on the outlook for the on-demand grocery market. “In the decade between 2009 and 2019, online grocery penetration increased from 1 percent of the overall grocery market to 3 percent, and then, in the following three years to 2022, it quadrupled to 12 percent” the company stated, alluding to anticipated growth in the sector.
Instacart officially started trading on Nasdaq under ticker “Cart” Tuesday for $30 per share, valuing the company at about $9.9 billion. However, share prices quickly shot up to $42, valuing the company at about $14 billion. Meanwhile, DoorDash trades at roughly $80 a share and is valued at $31.8 billion.
