The Food Delivery Industry Grows Through Innovation

New players and older brands join the competitive field, now with a focus on groceries.

August 24, 2020

ALEXANDRIA, Va.—Everyone is fighting for a bigger piece of the food delivery service pie, and it doesn’t stop at simply delivering meals from restaurants. Now, food delivery services are incorporating new options, including delivering groceries from convenience stores and supermarkets.
 
DoorDash, the largest U.S. third-party delivery company for restaurants, has launched a new grocery service in an increasingly crowded market dominated by Instacart and Amazon's Amazon Fresh, reports The New York Times. Grocery delivery on DoorDash's app will begin with Meijer, a Midwest grocery chain, among others, and expand to other regional and specialty chains.
 
DoorDash grocery orders are fulfilled inside of supermarkets by employees of Swiss staffing agency Adecco Group AG, who then put orders on a pick-up shelf for DoorDash drivers to deliver. DoorDash pays Adecco a fee based on an hourly rate for the number of Adecco employees that DoorDash requests in any given store.
 
The new service will be included for members of DashPass, the company's subscription offer.
Non-subscribers will pay delivery fees starting at $3.99. Grocery stores will also pay the company a percentage of sales to cover delivery costs.
 
The new service follows an announcement from DoorDash earlier this month that the company launched a digital convenience store with more than 2,500 items to serve customers in Chicago; Cincinnati; Columbus, Ohio; Dallas; Minneapolis; Phoenix; Redwood City, Calif.; and Salt Lake City.
 
DoorDash, along with Uber Eats, Grubhub and Instacard, also recently began working with ExxonMobil dealers to offer consumers delivery of essentials, such as milk, eggs and cleaning products. The service is now available through more than 10,000 locations. To receive merchandise from an ExxonMobil location, the customer simply orders online from their preferred delivery provider or through a mobile app. The convenience store employee fulfills the order, and it is then delivered via the preferred service.
 
Operating out of Las Vegas, another a low-cost provider to the restaurant mobile food-ordering delivery business, TripDelivers, entered the food delivery arena, launching its services in 36 markets around the U.S.
 
TripDelivers is owned by Tryp Technologies, a rideshare company entering the marketplace with a unique SaaS business model. The company’s independent driver-owner operators earn 100% of the ride fare and 100% of the tip. The company also provides the riders, customers and driver with identical receipts to ensure 100% fare transparency.
 
TripDelivers will enter the market through restaurant/grocery delivery and pickup channels and expects to have more than 500,000 restaurants as a reference in its app. The company also expects to garner substantial interest from restaurant partners, due to policies that separate it from the competition.
 
Restaurants will receive direct payment of earnings, which will reduce the payment timeframe. TripDelivers has a no menu mark-up policy, a common delivery service practice largely unknown to consumers. Menu pricing markup has been a point of contention with restaurant owners, who see it as a form of double dipping.
 
 
Coronavirus Resources
NACS has compiled resources to help the convenience retail community navigate the COVID-19 crisis. For news updates and guidance, visit our coronavirus resources page.
 
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