DoorDash Inc, the largest U.S. third party shipping company for restaurants, on Thursday launched a brand new grocery service, entering a crowded market controlled by Instacart Inc and Amazon.com Inc's (AMZN.O) Amazon Fresh.
Freight shipping on DoorDash's program will start with Meijer Inc, amongst others, and expand into regional and specialty chains in forthcoming weeks, DoorDash's mind of"new verticals" Faud Hannon told Reuters.
The greater than $680 billion U.S. grocery industry has seen sales rise as the coronavirus pandemic motivated people to stay home and cook more, and to shun shopping themselves in favor of lower-contact shipping services.
DoorDash grocery stores are fulfilled interior of supermarkets by employees of Swiss staffing agency Adecco Group AG (ADEN.S), who then put orders on a pickup shelf for DoorDash drivers to provide. DoorDash pays Adecco a fee based on an hourly rate for the amount of Adecco employees that DoorDash asks in any given store. Even though DoorDash drivers are independent contractors, Adecco workers are Adecco workers with benefits.
DoorDash stated it will deliver flour, tomatoes and olive oil in real time just as it does for lunch orders . Some of these stores also use other third party delivery businesses.
In some areas, DoorDash also delivers products - including meals - for Walmart (WMT.N), though customers need to still place orders on Walmart's program, not through DoorDash. DoorDash is currently in 4,000 cities in the U.S., Canada and Australia.
The new support will be contained 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 pay for delivery expenses.
Freight shipping on DoorDash's program will start with Meijer Inc, amongst others, and expand into regional and specialty chains in forthcoming weeks, DoorDash's mind of"new verticals" Faud Hannon told Reuters.
The greater than $680 billion U.S. grocery industry has seen sales rise as the coronavirus pandemic motivated people to stay home and cook more, and to shun shopping themselves in favor of lower-contact shipping services.
DoorDash grocery stores are fulfilled interior of supermarkets by employees of Swiss staffing agency Adecco Group AG (ADEN.S), who then put orders on a pickup shelf for DoorDash drivers to provide. DoorDash pays Adecco a fee based on an hourly rate for the amount of Adecco employees that DoorDash asks in any given store. Even though DoorDash drivers are independent contractors, Adecco workers are Adecco workers with benefits.
DoorDash stated it will deliver flour, tomatoes and olive oil in real time just as it does for lunch orders . Some of these stores also use other third party delivery businesses.
In some areas, DoorDash also delivers products - including meals - for Walmart (WMT.N), though customers need to still place orders on Walmart's program, not through DoorDash. DoorDash is currently in 4,000 cities in the U.S., Canada and Australia.
The new support will be contained 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 pay for delivery expenses.