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Grocery Outlet stores pilot Uber Eats delivery

Value-focused retailer expands online grocery partnerships

Russell Redman

May 19, 2022

2 Min Read
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Currently, Grocery Outlet is testing Uber Eats delivery at 72 stores in California, Oregon and Washington.Grocery Outlet

Grocery Outlet Holding Corp. is testing same-day delivery via Uber Eats at 72 stores in six states.

Under the partnership, officially announced Thursday by Uber Technologies Inc., Grocery Outlet customers can shop for groceries through the Uber Eats and Uber apps and online marketplaces and have their orders delivered on demand or scheduled at selected stores in California, Oregon, and Washington, including markets such as Portland, Seattle, San Francisco, San Jose, Sacramento, Palo Alto and Sunnyvale.

“We are excited about the long-term potential of our e-commerce initiative at Grocery Outlet and this new partnership with Uber,” Grocery Outlet President RJ Sheedy said in a statement. “We think it’s important to make our great-value products available across another platform and to a greater audience, introducing Grocery Outlet to customers who may not have shopped with us before.”

Emeryville, Calif.-based Grocery Outlet, whose retail model relies on value pricing and a “treasure hunt” shopping experience, is a relative newcomer to the online grocery arena. In late October, the self-described “extreme value” grocer unveiled a 68-store online grocery delivery pilot with Instacart in California, a couple of months after the retailer disclosed that it was in talks with potential e-commerce partners. Then last month, the retailer said it had expanded Instacart same-day service to nearly 400 stores in California, Oregon, Washington and Pennsylvania.

Related:Grocery Outlet posts 10.5% net sales gain for Q1

Then in a May 10 conference call on fiscal 2022 first-quarter results, Grocery Outlet CEO Eric Lindberg told analysts that the chain was readying to launch pilots of Uber Eats and DoorDash delivery service.

So far with Instacart delivery, both customers and Grocery Outlet store owners/operators are giving positive feedback, according to Lindberg. “The basket continues to be north of our in-store basket, which we like. We think we’re seeing some incremental customers that would not necessarily come in and see our values,” he said in the analyst call. “So they’re seeing our values online. We think that’s creating a nice cross-shop opportunity.”

In support of the pilot with Grocery Outlet, Uber Eats is offering the chain’s customers no delivery fee on their first order of $30 or more. Those who sign up for an Uber One members get zero delivery fees on all Grocery Outlet orders with a $15 minimum purchase.

“Our goal is to provide a reliable and affordable grocery delivery option that works for everyone, no matter your budget,” according to Oskar Hjertonsson, head of grocery at Uber. “We see our partnership with Grocery Outlet as an opportunity to do just that by delivering customers the brands they like at the Grocery Outlet prices they love, on-demand, right to their door.”

Related:Grocery Outlet goes chainwide with Instacart delivery

Overall, Grocery Outlet’s retail network includes 418 stores in California, Washington, Oregon, Pennsylvania, Idaho, Nevada and New Jersey.

About the Author

Russell Redman

Senior Editor
Supermarket News

Russell Redman has served as senior editor at Supermarket News since April 2018, his second tour with the publication. In his current role, he handles daily news coverage for the SN website and contributes news and features for the print magazine, as well as participates in special projects, podcasts and webinars and attends industry events. Russ joined SN from Racher Press Inc.’s Chain Drug Review and Mass Market Retailers magazines, where he served as desk/online editor for more than nine years, covering the food/drug/mass retail sector. 

Russell Redman’s more than 30 years of experience in journalism span a range of editorial manager, editor, reporter/writer and digital roles at a variety of publications and websites covering a breadth of industries, including retailing, pharmacy/health care, IT, digital home, financial technology, financial services, real estate/commercial property, pro audio/video and film. He started his career in 1989 as a local news reporter and editor, covering community news and politics in Long Island, N.Y. His background also includes an earlier stint at Supermarket News as center store editor and then financial editor in the mid-1990s. Russ holds a B.A. in journalism (minor in political science) from Hofstra University, where he also earned a certificate in digital/social media marketing in November 2016.

Russell Redman’s experience:

Supermarket News - Informa
Senior Editor 
April 2018 - present

Chain Drug Review/Mass Market Retailers - Racher Press
Desk/Online Editor 
Sept. 2008 - March 2018

CRN magazine - CMP Media
Managing Editor
May 2000 - June 2007

Bank Systems & Technology - Miller Freeman
Executive Editor/Managing Editor
Dec. 1996 - May 2000

Supermarket News - Fairchild Publications
Financial Editor/Associate Editor
April 1995 - Dec. 1996 

Shopping Centers Today Magazine - ICSC 
Desk Editor/Assistant Editor
Dec. 1992 - April 1995

Testa Communications
Assistant Editor/Contributing Editor (Music & Sound Retailer, Post, Producer, Sound & Communications and DJ Times magazines)
Jan. 1991 - Dec. 1992 

American Banker/Bond Buyer
Copy Editor
Oct. 1990 - Jan. 1991 

This Week newspaper - Chanry Communications
Reporter/Editor
May 1989 - July 1990

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