DoorDash, the largest American third-party delivery company for restaurants has launched a new grocery service, entering a crowded marketplace dominated by Instacart and Amazon Fresh.
Grocery delivery on DoorDash’s program will start with Meijer, among others, and expand into more regional and speciality chains in coming weeks, DoorDash’s head of “new verticals” Faud Hannon told journalists.
The more than $680 billion US grocery market has seen sales rise as the coronavirus pandemic prompted people to stay home and cook more, and to shun shopping themselves in favor of lower-contact delivery solutions.
DoorDash grocery orders are fulfilled inside of supermarkets by employees of Swiss staffing agency Adecco Group AG, who subsequently put orders on a pick-up shelf for DoorDash drivers to deliver.
DoorDash pays Adecco a fee based on an hourly rate for the number of Adecco employees that DoorDash requests in any given store. Even though DoorDash drivers are independent contractors, Adecco workers are Adecco employees with benefits.
Earlier this year, it launched shipping of general merchandise with 7-Eleven Inc, Circle K, Wawa Inc, Walgreens and CVS Pharmacy. Some of these shops also use other third-party delivery companies.
In some areas, DoorDash also delivers goods – including food – for Walmart, though customers must still place orders on Walmart’s program, not through DoorDash. DoorDash is in 4,000 cities in the United States, Canada and Australia.
The new service will be included for members of DashPass, the company’s subscription product.
Non-subscribers will pay delivery fees starting at $3.99. Grocery stores will also pay a percentage of earnings to DoorDash to cover delivery expenses.
The team at Platform Executive hope you have enjoyed this news article. Initial reporting via our content partners at Thomson Reuters. Reporting by Hilary Russ. Editing by Sam Holmes.
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