DoorDash (NYSE: DASH), announced a partnership with Albertsons Companies (NYSE: ACI) on Monday and is set to offer on-demand grocery delivery services from about 2,000 Albertsons locations. DoorDash shares rose over 5.5% and Albertsons gained more than 2% upon the news.
Demand for convenient and speedy delivery continues to rise. DoorDash is now facilitating one hour deliveries with no time slots, queues or minimum order amount necessary. Furthermore, Albertsons is to offer over 40,000 grocery options from its stores, such as fresh and prepared food, core grocery, floral and convenience items at select stores.
“Consumers’ desire to get everything in their neighborhood on-demand has increased dramatically. We are thrilled to partner with Albertsons, one of the largest food and drug retailers in the world, as they expand their already strong local footprint beyond their four walls to offer consumers convenient access to on-demand grocery delivery,” said Fuad Hannon, Head of New Verticals at DoorDash. “Leveraging our extensive logistics network and Albertsons wide selection of fresh groceries, we are creating a one-stop shop for customers to access any of the essentials they need, delivered to their doorstep within an hour.”
The alliance demonstrates how DoorDash can aid grocery stores constant rivalry with Amazon and Walmart, which currently dominate the online grocery delivery market.
“We are committed to expanding our delivery experience in order to meet our customers’ needs whenever, wherever and however they want,” said Chris Rupp, Chief Customer and Digital Officer, Albertsons Companies. “Our partnership with DoorDash is the next step in our digital transformation to help make our customers’ lives easier and help answer the perennial question, ‘What’s for dinner tonight?'”
The agreement contains both immediate and long-term initiatives, like aiding the expansion of Albertsons’ with DoorDash Drive, introducing a custom loyalty program, including more delivery hours, and providing a unique selection.