DoorDash Takes Aim At Amazon With New Grocery Delivery Service

DoorDash on Thursday announced a major expansion to its service, one which will put it in direct competition with Amazon. The popular food delivery app will begin rolling out grocery delivery service in certain regions, entering a market dominated by Amazon Fresh and Instacart.

DoorDash will start its grocery offerings exclusively at Meijer, a Michigan-based chain known for its presence in the Midwest, Reuters reports. The California-based company plans to expand the service to new chains and areas in the weeks to come.

The grocery orders will be completed in partnership Adecco Group, a staffing agency that will bring workers to get items from store shelves and put them on a pick-up rack. DoorDash drivers will then grab these orders and complete the delivery. Workers brought on by Adecco will be classed as employees and be eligible for benefits, in contrast to DoorDash drivers who are classed as independent contractors.

Members of DashPass, the company’s premium subscription service, will be able to get the same free delivery benefit for grocery delivery. All other users will have to standard delivery fees starting at $3.99.

The COVID-19 pandemic has seen the $680 billion grocery business and the burgeoning delivery app business explode, as homebound consumers bought more groceries to cook at home and ordered out instead of going to restaurants.

In response, chains like CVS and 7-Eleven began partnering with third-party services to offer delivery on their products. Uber also acquired general delivery service Postmates in a bid to expand its presence in the market beyond its restaurant-focused Uber Eats.