Uber Makes Major Move in Grocery, Partners With Albertsons

Marking its largest grocery expansion since its launch in July 2020, Uber Technologies Inc.'s on-demand and scheduled grocery delivery is now available to Uber and Uber Eats customers in over 400 cities and towns across the U.S., including major markets such as San Francisco, New York City and Washington D.C. The move—which includes a 1,200-store partnership with the Albertsons Cos.—more than doubles the availability of its offerings this week.

Delivery through the Uber app from the 1,200 stores isn’t immediately available, but rather the goal is by the end of the year, Albertsons told WGB. The Boise, Idaho-based grocer also said the Uber partnership is strictly grocery delivery through Uber’s apps and doesn’t change anything with Albertsons’ first-party delivery offerings.

Uber isn’t the first delivery service with restaurant industry origins to partner with Albertsons. Last month, Albertsons and DoorDash announced a new partnership to offer on-demand grocery delivery from nearly 2,000 Albertsons’ banner stores across the country, including Safeway, Vons, Jewel-Osco and more, from the DoorDash marketplace app.

With demand for grocery and food delivery accelerating dramatically during the pandemic, digital foodservice and grocery sales are outpacing all of e-commerce, finds a recent report from Edge by Ascential, which notes U.S. sales at on-demand food delivery firms, including DoorDash, Uber and Instacart, are increasing at a compound annual growth rate (CAGR) of 16.8% a year, nearly 1.7 times faster than the total e-commerce market in the U.S., which is expected to grow at 10.1% CAGR.

Indeed, since launching its grocery feature in July 2020, San Francisco-based Uber has seen consistent growth in the U.S. for its grocery category, the company said. Major U.S. metro areas now include Miami, Dallas, New York City, San Francisco, Washington, D.C., and Phoenix, with more to come throughout 2021. 

“This past year has been one of incredible growth for grocery delivery,” said Raj Beri, Uber’s global head of grocery and new verticals, 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.” 

With the partnership, Albertsons Cos.’ banners, including Albertsons, Safeway, Jewel-Osco, ACME, Tom Thumb, Randalls and more, join regional grocers such as Southeastern Grocers and New York’s Red Apple Group on the Uber platform, available to consumers within the Uber and Uber Eats apps. On all grocery orders over $30, Uber Pass and Eats Pass customers will get free delivery.