"Finding the freshest, highest-value treats – even for delivery – can be time consuming. This new curated collaboration with Kroger across floral and sushi makes it easier than ever for people to treat themselves and others on-demand," said Christian Freese, Uber's head of grocery and retail in the U.S. and Canada, in the release.
It’s the latest effort by Kroger to expand in the e-commerce grocery market. As Retail Leader previously reported, the grocer, which is the largest supermarket operator in the U.S., has grown its network of e-commerce fulfillment facilities. It’s even expanded e-commerce order fulfillment in areas where it doesn’t have any stores, like in South Florida, where it expanded delivery earlier this year.
While grocers have in many cases shifted from third-party delivery partners on grocery delivery, choosing to offer in-house pick, pack and delivery options, third-party partners like Uber Eats, Instacart and DoorDash continue to play a valuable role to grocers and other essential retailers, especially for on-demand orders that require greater delivery speed.
E-commerce in grocery remains immensely popular with consumers, skyrocketing in popularity during the COVID-19 pandemic. Still, growth in the category has shown signs of a slow down. According to Bricks Meets Clicks, the online grocery market in the U.S. had $8 billion in sales in March, down 7.6% from March 2022. Grocery delivery shrunk by 7.4%, while pickup orders declined a larger 8.5%. Ship-to-home fell by 5.9%, according to the survey.