DoorDash, which made its mark in the food world by delivering food from restaurants directly to consumers, has big plans for expanding its already large footprint in grocery.
“Our mission is to be the one-stop shop for all local commerce needs for consumers,” said Mike Goldblatt, the company’s vice president for New Verticals Partnerships. “That means connecting every grocery and convenience store to every local consumer.”
DoorDash launched on-demand grocery delivery in 2020. Since then, the company has continually added new merchants so consumers can enjoy increased local selection on DoorDash and partners can leverage an additional online channel to reach new customers, Goldblatt said.
“We have partnerships with 6 out of the 10 top grocers in the United States and with regional favorites like Giant Eagle, The Save Mart Companies, The Raley’s Companies, Southeastern Grocers, Wegmans and more.”
Most recently, DoorDash has partnered with local and specialty grocers including Fresh Encounter, Fruitful Yield, Plum Market, Robért Fresh Market and Stew Leonard’s.
Over 7 million people order in grocery and retail categories on DoorDash each month. The company’s overall consumer base is 37 million, so there’s plenty of room for growth.
And the demand is definitely there, Goldblatt said. Consumers today value speed and convenience, and they increasingly expect their deliveries to arrive faster than ever before.
In late 2023, DoorDash released data that revealed a change in how consumers are purchasing grocery, household, personal care, pet care, and alcohol products with the evolution of quick commerce.
Not surprisingly, the study found that the way people purchase consumables is rapidly changing. In addition, the need for speed and convenience continues to be important.
When shopping online for consumables, the top priorities for respondents are convenience (74%), ease of use (48%), and speed (46%).
What DoorDash offers supermarkets and their customers, Goldblatt said, is a large and highly engaged consumer base and a proven commitment to building services that drive long-term success for its partners.
“We continue to receive strong signals from our partners regarding the incremental sales we generate and the new, recurring customer base.”
Incrementality studies conducted across a number of DoorDash’s grocery and convenience enterprise partners indicate that the company is 70-90% incremental to its existing customer bases.
DoorDash has also made significant headway in its selection efforts on its platform, providing more than 99% of its monthly consumers in the U.S. access to a non-restaurant retailer such as a grocery, convenience, or alcohol store, on DoorDash.
That results in a huge incremental sales opportunity for grocers on the DoorDash Marketplace, the fastest delivery times for consumers on both its marketplace and grocers’ channels and all at higher quality and a lower cost, Goldblatt said.
“We continue to develop products that align with the needs of our merchants, meeting consumer habits for convenience and ease while empowering our local communities. Across restaurants, grocery, and retail, DoorDash is the leading acquirer of new consumers – setting the stage for long-term, sustained growth for grocers and retailers.”
DoorDash’s goal is to be “the rising tide that lifts all boats,” Goldblatt said – driving incremental growth for grocers while helping consumers stock up on groceries from their favorite supermarket or local retailer, whenever and however is best for them.
“Our focus is on how we can bring the best of DoorDash to help all grocers optimize their omnichannel experience for growth and drive incremental sales to reach more customers.”
More convenient, more accessible: New tools from DoorDash
DoorDash’s new upgrades to its app include tools to make it easier than ever for shoppers to get their groceries. They include:
Import your grocery lists
Consumers can now add and import their grocery lists and build their cart on DoorDash in minutes. Simply import from the Reminders app on iOS or paste your grocery list into the DoorDash app to add the items you need to your cart in minutes.
SNAP/EBT recipients save more
As part of DoorDash’s commitment to broaden food access, we introduced a new, one-year discounted DashPass plan for SNAP/EBT recipients. Eligible customers who sign up for the plan can enjoy one year of DashPass benefits – like $0 delivery fees and reduced service fees on eligible orders, exclusive offers, and more – for just $4.99/month.
This article is an excerpt from the January 2025 issue of Supermarket Perimeter. You can read the entire Mobile Apps feature and more in the digital edition here.