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07/20/2021

Albertsons Taps Uber for Grocery Delivery Expansion

Uber is taking a major step into the grocery space in a new partnership with supermarket chain Albertsons to deliver groceries.
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The 1,200-store partnership more than doubles Uber’s current grocery delivery service and marks Uber’s first major grocery expansion in the U.S.

“This past year has been one of incredible growth for grocery delivery,” Raj Beri, Uber’s global head of grocery and new verticals, said in a statement. “Today nearly 3 million consumers order groceries and other essentials each month through Uber and we’re just getting started. By adding thousands of beloved grocers to our selection this year, we are fast-tracking our efforts to help Americans get everything they need from their favorite supermarket, delivered to their doorsteps.”

Executive Summary

Grocery retailers have scrambled to ramp up delivery services since the start of the pandemic, often opting to leverage third-party delivery services such as DoorDash, Uber, Instacart and others. Uber and Doordash both launched their grocery delivery businesses in 2020 during the height of the pandemic.

Uber’s current grocery delivery reach is in Miami, Dallas, New York City, San Francisco, Washington D.C. and Phoenix, with more locations on the way, the company stated. All grocery orders over $30 can be delivered for $0for Uber Pass and Eats Pass. Uber has already partnered with regional grocery retailers such as Southeastern Grocers and New York’s Red Apple Group.

However, Albertsons has already teamed up with DoorDash on grocery delivery services. In a deal announced last month, DoorDash is providing grocery delivery for 2,000 Albertsons stores, including its Safeway, Vons and Jewel-Osco store brands. Albertsons, which has 2,277 retail stores with 1,725 pharmacies, 400 associated fuel centers, 22 dedicated distribution centers and 20 manufacturing facilities, has seemingly doubled up on its delivery service providers to meet growing demand for online orders. 

Exec summary

Uber has also made other partnerships in the sector, after striking a deal with consumer goods micro-fulfillment and delivery company Gopuff in May. Uber Eats customers can access Gopuff delivery services under that partnership in 95 cities. Uber has also acquired food and beverage delivery services Postmates, Drizly and Cornershop, Progressive Grocer reported.


See the full story at Progressive Grocer.

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