DoorDash, The Next Big Thing In Online Grocery Delivery?

If you get confused regarding your favorite delivery platforms, mistaking those that offer food delivery also providing grocery deliveries – because some of those that deliver food also handle groceries – then don’t. Could you believe that DoorDash, having been founded over a decade ago, doesn’t deliver groceries yet?

Well, the tides are changing as DoorDash’s recent move takes it closer to dominating this market. Here’s the scoop.

Four grocers in the DoorDash catalog

On Monday, DoorDash started the week right as it announced the addition of four grocery partners, namely Chicago’s Angelo Caputo’s Fresh Markets, Wisconsin’s Festival Foods and Woodman’s Food Markets – the latter also in Northern Illinois, and Ohio’s Marc’s.

Angelo Caputo’s Fresh Markets offers a diverse assortment of international, traditional, healthy, and organic foods. Festival Foods is a family-owned and -operated supermarket chain with several stores throughout the Badger State.

Meanwhile, Woodman’s Markets remains an employee-owned regional supermarket chain based in Janesville, Wisconsin. Started in 1919 as a produce stand, this chain has grown to operate 19 stores not just in Wisconsin, but also across northern Illinois.

DoorDash CEO Tony Xu speaks

The chief executive officer of DoorDash, Tony Xu, is having no holds barred, saying that DoorDash needed to evolve since customers are looking for grocery items as well.

“Grocers see that the business that we bring and the customers that we bring is very incremental to what they see through their own channels as well as with other partners. And so I think all of these things have been very strong indicators that we’re on the right path,” the DoorDash CEO stated.

He further pointed out that grocery delivery is “still nascent” in the United States compared to how popular it is in other countries, such as China. So, he feels like DoorDash is “super early” in terms of what grocery delivery should look like. What, really, Tony?

Improvements

However, Xu admitted it is a work in progress. If DoorDash is to succeed in this promising venture, it must add more SKUs, enhance accuracy, expand product affordability, and improve inventory management.

“There’s a long way to go,” he further noted.

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