Albertsons to kick off DoorDash delivery at nearly 2,000 stores

In line with a plan to step up use of third-party delivery, Albertsons Cos. has tapped DoorDash to provide last-mile grocery delivery from almost 2,000 stores.

San Francisco-based DoorDash said Monday that, under the partnership, Albertsons will sell more than 40,000 products for delivery via the DoorDash online marketplace and app, including fresh and prepared foods, grocery, floral and convenience items from participating stores. In selected markets, customers also will be able to order groceries through their local Albertsons Cos. store’s website for same-day delivery through DoorDash Drive, DoorDash’s white-label fulfillment platform that enables direct delivery for businesses.

Overall, Boise, Idaho-based Albertsons Cos. operates 2,277 stores in 34 states and the District of Columbia under 20 retail banners, such as Albertsons, Safeway, Vons, Jewel-Osco, Shaw’s, Acme, Tom Thumb, Randalls, United Supermarkets, Pavilions, Star Market, Haggen, Carrs, Kings Food Markets and Balducci’s Food Lovers Market.

“We are committed to expanding our delivery experience in order to meet our customers’ needs whenever, wherever and however they want,” Chris Rupp, chief customer and digital officer at Albertsons Cos., said in a statement. “Our partnership with DoorDash is the next step in our digital transformation to help make our customers’ lives easier and help answer the perennial question, ‘What’s for dinner tonight?’”

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DoorDash and Albertsons also are offering In The Bag, a digital video game that lets users play for a chance to win savings on future grocery orders. 

Albertsons Cos. customers can now order groceries and daily essentials for delivery within an hour with no time slot, queues or minimum order size required, according to DoorDash. All Albertsons stores will be available on DashPass, DoorDash’s subscription program that offers members unlimited free delivery and reduced service fees on eligible orders of $25 or more, including from Albertsons and thousands of other grocery and convenience stores and restaurants nationwide.

In support of the partnership, DoorDash is offering Albertsons Cos. customers 40% off (up to $40) their first grocery order from one of the retailer’s supermarkets through June 30 when they use the code “GROCERY” at checkout.

“Consumers’ desire to get everything in their neighborhood on-demand has increased dramatically,” noted Fuad Hannon, head of new verticals at DoorDash. “We are thrilled to partner with Albertsons, one of the largest food and drug retailers in the world, as they expand their already strong local footprint beyond their four walls to offer consumers convenient access to on-demand grocery delivery.”

Related:Albertsons to shift to third-party online grocery delivery in some markets

The Albertsons/DoorDash partnership includes immediate and long-term initiatives, including the expansion of Albertsons’ first-party grocery delivery business with DoorDash Drive, the launch of a custom loyalty program and extended delivery hours, along with an enhanced product selection including specialty items, prepared meals, meal kits and new concepts, DoorDash said.

DoorDash and Albertsons, too, are offering what they call a “first-ever” digital gaming experience that gives users the chance to play and score savings on future grocery orders. Users can now play In The Bag, an interactive video game that prompts users to place as many fresh grocery items — such as apples, asparagus, milk and avocados — as possible into a virtual DoorDash grocery bag before reaching the top and running out of space. The more groceries that are fit into the bag, the more users save via promotions per tiered score. The top scorer wins a $5,000 credit (provided through ten $500 DoorDash gift cards) toward purchases on DoorDash.

“Leveraging our extensive logistics network and Albertsons’ wide selection of fresh groceries, we are creating a one-stop shop for customers to access any of the essentials they need, delivered to their doorstep within an hour,” Hannon added.

DoorDash, which went public last November, noted that the Albertsons partnership reflects its expansion beyond restaurants and into grocery and categories beyond food, including convenience retail, pet care and pharmacy delivery.

For Albertsons, DoorDash provides another major delivery partner. Albertsons has been expanding online grocery delivery across its retail banners, with Instacart delivery available through more than 90% of its stores and some banners also working with Shipt and Uber Eats for grocery and/or food delivery service.

In January, Albertsons said it was shutting down its own online grocery delivery operation — offered at about 65% of its stores — in some of its market areas and shifting exclusively to third-party delivery providers. Albertsons discontinued the use of its home delivery truck fleet in 10 states as of Feb. 27.

Digital sales surged 258% at Albertsons for its 2020 fiscal year, ended Feb. 27, and the grocer has Drive Up & Go (DUG) curbside pickup sites at over 1,420 stores. The company said it expects to have DUG at about 2,000 stores by the end of fiscal 2021 — above its previous target of over 1,800 stores — with 98% coverage.