DoorDash announced on Monday that it was partnering with Albertsons Cos. to offer on-demand grocery deliveries from nearly 2,000 Albertson stores including Safeway, Vons and Jewel-Osco.
DoorDash shares rose more than 4% on Monday while Albertsons rose more than 2%.
The partnership shows how DoorDash can help grocery stores like Albertsons compete with Amazon and Walmart, who are currently leading the online grocery delivery market.
“As expectations for convenience, speed and ease of use continue to rise, consumers can order now
Groceries and supplies are delivered on-demand within one hour through DoorDash’s world-class marketplace, with no time slots, queues or minimum order requirements, “the company said in a press release. Albertsons will offer more than 40,000 store groceries for delivery.
According to the companies, the partnership includes a new individual loyalty program, extended delivery times, a range of meal sets, ready meals and specialties.
Customers in select markets can order groceries for same day delivery through their local Albertsons store’s website. The service is powered by DoorDash Drive, the company’s white label fulfillment platform that offers direct delivery to any business.
Grocery and grocery deliveries have been a bright spot during the coronavirus pandemic as people limit their time outside the home. According to Coresight Research, the pandemic has increased online buying behavior among a high proportion of shoppers.
More than a quarter of shoppers said they plan to shop for groceries online more often, according to the company’s online grocery survey, conducted in April.
“Grocery deliveries are still in their infancy, and what the pandemic really did was the need to bring more things to the neighborhood,” Tony Xu, CEO of DoorDash, told CNBC’s TechCheck.
This trend has caused companies like DoorDash to expand beyond restaurant delivery to the home. DoorDash now also supplies flowers, pet supplies, convenience store products and groceries, for example. According to the company’s latest earnings report, orders in these new categories were up 40% compared to the previous quarter.
Uber also announced early Monday that it would acquire the remaining 47% stake in the grocery start-up Cornershop that it did not already own in an all-stock transaction.
Subscribe to CNBC on YouTube.