The grocery delivery landscape has changed dramatically since the pandemic years forcing companies like DoorDash, GrubHub and Instacart to search for new ways to bring in additional revenue streams. Though many consumers have returned to in-store shopping, experts say it is essential for retailers to keep offering an online experience.
Lately, there appears to be a race among delivery platforms to line up partnerships with major grocery chains. It's been billed as a value-add for both retailers and third-party aggregators. GrubHub has been on a tear in the past three months with Albertsons, Amazon and independent grocery store ordering platform Mercato as it makes its first expansions beyond restaurant delivery. Uber Eats has also made a major jump – aligning with Instacart to share restaurant-delivery resources. Meanwhile, DoorDash has also been lining up deals in beauty, home improvement and pet food and added Wakefern Food Corp.’s banners (ShopRite, Price Rite, The Fresh Grocer, Fairway Market, Gourmet Garage, and Dearborn Market) while expanding its partnership with Walgreens. Some might call it consolidation. Others, like retail analyst Brittain Ladd, liken it more to “a publicity stunt.” Ladd’s skepticism lies in having found “no evidence” that either GrubHub or UberEats are increasing their sales by moving deeper into grocery delivery. “I believe this is much ado about nothing,” he said. Though it might seem like a lot of PR with little to show for moving the sales needle it does reflect something deeper from the retailer perspective. Having same-day and a one-stop delivery option has become a “necessity not an option,” said industry consultant Michael Sansolo. GrubHub, DoorDash, Uber Eats and Instacart provide an opportunity to bring more options to the shopping experience. Folding prepared food delivery into the weekly grocery trip is all part of providing more convenience. Walmart acquired Shipt so it could handle its own delivery in-house. Not to mention, the mass retail giant has also flipped portions of its physical stores to serve as mini fulfillment centers. But for retailers without the financial muscle or existing infrastructure, third-party solutions like GrubHub, DoorDash or UberEats (and their human drivers) are cheaper and easier than building out or buying new delivery operations. “The pandemic made remote shopping far more important [and] far quicker than anyone imagined,” Sansolo said. “Many thought they'd have years to create an omni-channel strategy but the pandemic made them act in days not years.” Part of the continuing challenge will be providing the in-store discovery experience, which often drives impulse buying, in turn, increasing revenue for grocery retailers. Yet, providing the same shopping experience online as opposed to in store aisles is “not always realistic,” Sansolo said. “It's still a journey and it's early. This may change.” Go Deeper: Learn more about how instant delivery and convenience are shaping grocery operations. | 
