🚚 New Local Partnerships
DoorDash is making strides to integrate small and regional grocers onto its platform, a segment it sees as “overlooked” by other delivery platforms. Last month, it onboarded 33 new locations from local brands like Kowalski’s in Minnesota, Mar-Val Food Stores in California, and Geissler’s in Connecticut and Massachusetts. DoorDash also expanded its presence with larger grocers like Wegmans. This marks a continued shift for the company, as it positions itself as a key partner for local businesses, particularly those seen as staples in their communities.
🏠 Focus on Local Economies
According to Fuad Hannon, VP of new verticals at DoorDash, the platform has always emphasized local commerce. Starting as a restaurant delivery service, DoorDash’s recent focus has expanded into grocery, with 7M users now using the app for groceries. DoorDash has partnered with six of the top 10 U.S. grocers but says smaller, community-rooted stores are the heart of its platform. “Keeping economic activity within the community is crucial,” Hannon noted, pointing to benefits for local merchants, Dashers, and consumers alike.
📲 SNAP and Accessibility
As part of its commitment to accessibility, DoorDash began accepting SNAP/EBT payments in June 2023, adding a crucial service for many low-income households. Today, more than 15,000 stores accept SNAP on DoorDash, including larger grocers like Aldi and Albertsons. With over 1.8M customers linking their SNAP cards to the app, Hannon highlighted how this effort is bridging food access gaps, particularly for consumers in food deserts or without reliable transportation.
📈 Incremental Customers Drive Growth
DoorDash reports that 75-90% of grocery customers on its app are new to the platform, a key growth factor. While most use DoorDash for restaurant orders, grocery services cater to a different need, allowing shoppers to make “intra-week” orders for essentials they may have missed. By offering a mix of national and local grocers, DoorDash appeals to both loyal local shoppers and consumers seeking convenience. Hannon says the platform’s approach is tailored to each merchant, ensuring local businesses can compete in the evolving grocery landscape.
Do you prefer national chains or local grocers?
