Will DoorDash win the ultra-fast delivery race?
One of the biggest app-based delivery services is offering customers in select markets a service that will get them their grocery orders even faster than usual.
DoorDash has announced that it will be offering ultra-fast grocery delivery with a new service in the Chelsea neighborhood of Manhattan, according to Axios. Customers in the delivery area can order products available in the DashMart warehouse and, for a charge of between 99 cents and $1.99, expect to receive them in 10 to 15 minutes. DoorDash will hire full-time employees at $15 per hour plus benefits for the service via a new subsidiary called DashCorp, rather than use their typical contract workers. Employees will carry out deliveries on e-bikes.
DashMart, which will facilitate the ultra-fast option, is a fairly new element of the DoorDash business model. It launched in the summer of 2020 in eight U.S. cities. While much of what DoorDash delivers comes from restaurants, convenience retailers and other stores in the markets it serves, DashMart warehouses hold an inventory of around 2,000 grocery items and essentials along with branded convenience and restaurant products.
Ultra-fast delivery has emerged as the next big battleground for delivery services with startups including Getir, Gopuff, Gorillas, Fridge No More, Buyk and Jokr offering orders within a 10- to 15-minute window.
DoorDash was eyeing Gorillas for a potential acquisition, but the deal did not go through, according to Axios.
DoorDash has recently made other new delivery options available to its customers as well. In August, it announced the launch of its DoubleDash feature. The feature allows customers to order from restaurants and order products from participating retailers — such as 7-Eleven, Wawa and Walgreens — to be picked up along the way and delivered along with their food order. DoorDash is also testing a program whereby customers receive special deals for ordering from more than one restaurant at a time.
While DoorDash is just moving into rapid delivery, others appear to be a few steps ahead. The venture-backed Gopuff, which received a $15 billion valuation in a funding round, partnered with Uber Eats to deliver convenience store orders through the more established service’s app.
- DoorDash debuts ultra-fast grocery delivery in NYC – Axios
- DoorDash Introduces Ultra-Fast Grocery Delivery, Providing Busy Consumers with a Reliable and Convenient Way to Restock Instantly – DoorDash press release
- How disruptive is the rapid delivery model to grocery? – RetailWire
- Uber Eats delivers dinner with a side of blush – RetailWire
- Will the latest Amazon and DoorDash delivery moves give each a leg up on rivals? – RetailWire
DISCUSSION QUESTIONS: Do you think DoorDash’s ultra-fast delivery service will catch up to those who entered the market earlier? What will it take for DoorDash to differentiate itself in the ultra-fast delivery market?