Food delivery services are the crutch of my laziness, and I think many Americans would agree. The age of convenience has ushered in companies like DoorDash and Postmates, which are two of the biggest names in the game. With competitors like Instacart, who only offers a grocery delivery service as opposed to the former’s restaurant delivery, how can these companies maintain their spot at the top? The Wall Street Journal reported that consumers in the U.S. spend more annually on groceries than they do at restaurants, so it’s never been a question of if these companies will link up with supermarkets, but when.
The news source reported that DoorDash and Postmates are among a handful of companies who are now making deals with companies outside the restaurant ring. This puts the two in direct competition with companies like Amazon.com and even Uber, which has made many waves of late with its foray into grocery. Postmates announced that it will begin deliveries from Walgreens stores in New York, but hopes to take the service nationwide, and is already making deliveries from some 7-Eleven and Walmart stores.
DoorDash also makes some deliveries from Walmart, but recently entered an agreement with Mercato, an e-commerce platform, allowing it to make deliveries from 750 grocery stores in 22 states. Uber Technologies’ Uber Eats division is also testing grocery delivery in other countries.
However, not all that glitters is gold. The Wall Street Journal stated that many customers would still rather take a trip to the grocery store than pay extra for delivery. Plus, orders from grocery stores will most likely be bigger and take longer, which could potentially cause complications for the couriers. Those are just a couple reasons why companies like Grubhub have decided to stay in the restaurant realm. On the flip side, the news source reported that grocery delivery done well has the potential to strike a fine balance between the high demand of groceries early on in the day and the evening rush hours plugged by restaurant pick-ups.
So, you mean to tell me that I can not only have breakfast, lunch, and dinner delivered, but I can get an entire grocery haul dropped at my front door? My bank account probably disagrees, but that’s the best news I’ve heard all week. With the evolution of food delivery knocking at our doors, be sure to stay with us at Deli Market News for updates.