DoorDash Continues to Dominate Food Retail With New Partnerships
DoorDash continues its food retail momentum with the news that specialty grocer Sprouts Farmers Market has partnered with the delivery platform. Beginning in October, consumers will be able to shop from more than 375 Sprouts stores on the DoorDash marketplace, ordering everything from fresh produce to organic and natural food and snacks for on-demand delivery.
Founded in 2013 to mainly offer restaurant delivery services, DoorDash has now become a one-stop-shop for every consumer’s local commerce needs. Today, the company boasts more than 75,000 non-restaurant retail stores on the DoorDash platform across North America, including delivery for grocery, convenience store, alcohol and more. In particular, growth in grocery has become a very successful segment for DoorDash these past few years as a result of the COVID-19 pandemic. According to the company, the number of customers who ordered from a grocery store on the DoorDash platform increased by 130% over the past year alone. Incrementality studies conducted across a number of DoorDash grocery and convenience enterprise partners indicate that DoorDash is 70-90% incremental to their existing customer base.
Besides Sprouts, DoorDash has partnered with Giant Eagle on DoorDash marketplace, beginning with stores in Columbus, Ohio. It is also expanding its partnership with mid-Atlantic grocer Weis Markets on DoorDash Drive. The company will now be powering delivery for their first party channel in addition to DoorDash marketplace. Plus, DoorDash has teamed up with EG America, a convenience, coffee, fuel and food service retailer, to offer on-demand delivery. Select brands are already live in the DoorDash app, and by the end of the year, DoorDash will expand to over 1,300 EG convenience brand locations.
These food retail deals are in addition to ones already announced in September, such as The Raley’s Co.’s partnership, which includes stores within the Raley’s and Bashas’ division, to offer on-demand grocery delivery from over 213 locations spanning multiple cities across Northern California, Nevada and Arizona. And consumers at Big Lots can now shop for home goods, seasonal décor, bedding, snacks and pantry staples, cleaning products, outdoor essentials, pet care supplies and more from more than 1,400 Big Lots locations across 48 states.
“DoorDash’s mission is to be the one-stop shop for all local commerce needs for consumers, and that starts with bringing every business on Main Street online. Our goal is to level the playing field for retailers while helping consumers get the best of their neighborhood delivered to them instantly. DoorDash is hyper-focused on selection, and we’re excited about the significant progress we’ve made towards connecting every grocery, convenience, and retail store to every local consumer,” said Shanna Prevé, VP, business development at San Francisco-based DoorDash.
According to the "DoorDash Economic Impact Report," 89% of consumers surveyed said that convenience and ease of use were important or very important reasons they use the DoorDash app and website.
Phoenix-based Sprouts Farmers Market is No. 53 on The PG 100, Progressive Grocer’s 2022 list of the top food and consumables retailers in North America. Pittsburgh-based Giant Eagle is No. 36 and Sunbury, Pa.-based Weis Markets is No. 61 on the list. Meanwhile, West Sacramento, Calif.-based The Raley's Cos. is No. 48 and Columbus, Ohio-based Big Lots is No. 52 on The PG 100.
