Grubhub makes big grocery move with Albertsons partnership

Last-mile delivery service Grubhub is making a major move in the grocery sector through a new partnership with Albertsons Cos. that will bring the chain’s nearly 1,800 stores to the Grubhub Marketplace. 

The new alliance is Grubhub’s first partnership with a national grocer and includes Albertsons’ namesake banner as well as Safeway, Vons, Jewel-Osco, Shaw’s, ACME and Tom Thumb locations. 

Those banner stores will also appear on the Chicago-based delivery company’s loyalty program Grubhub . 

“With our latest collaboration with Grubhub, shoppers can receive fresh produce, household essentials, and regional favorites directly from our stores to their homes with a simple tap on Grubhub,” Amber Kappa, vice president of business development and digital innovation at Albertsons Cos., said in a press release. 

The deal comes just a couple of months after Grubhub announced its first grocery partnership. The deal with Mercato, an online marketplace for independent grocers, announced on April 18 added over 950 retail locations to Grubhub’s marketplace. 

That included smaller chains such as Citarella, Kol Tuv Kosher Foods, Boston Public Market, and Eataly, among others. 

“Grubhub started as a marketplace for independent restaurants, so it’s only fitting that as we expand into the grocery space it’s first with a partner that works with independent grocers,” Craig Whitmer, vice president of new verticals at Grubhub, said in a press release in April. “By joining forces with local grocers, we’re not just delivering for our customers, but we’re delivering for small businesses to help grow their online presence. Our customers can now get more of what they need on Grubhub while Mercato’s merchants gain access and increased visibility among our customers.” 

Related:Grubhub expands into grocery

Grubhub’s entry and growing presence in the grocery delivery market comes at a time of change in that segment of the supermarket industry. 

Instacart announced a partnership with Uber Eats in May, adding hundreds of thousands of Uber Eats’ restaurant partners to the Instacart app. 

The move was a direct challenge to DoorDash, which dominates restaurant delivery with nearly 60% of the market as of January of 2024. 

Meanwhile, DoorDash has been making inroads in grocery delivery over the last couple of years, an initiative that DoorDash CEO Tony Xu says has “paid off really well.”

The San Francisco-based delivery company most recently made headlines through its announcement that it is further expanding its liquor delivery business to Food Lion, Hannaford, Giant Food, Martin’s, Stop & Shop, and several other liquor stores.

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