Grocery & Convenience Growth on Third-Party Platforms
As food delivery has become a more prominent part of many people’s lives throughout the pandemic, the platforms themselves have evolved to address a wider range of customer needs. Platforms like DoorDash, Uber Eats, and Grubhub have prioritized grocery and convenience delivery as a growth driver. For example, at the top of DoorDash’s homepage, above a carousel of different types of meals, is a carousel of different categories of delivery, notably led by “Convenience” and “Grocery”. Customers browsing around will also notice “Alcohol”, “Pet Care”, and “Retail” as DoorDash and its peers attempt to become the everything store for quick delivery.
While convenience and grocery delivery only comprise a relatively small share of overall sales for these platforms today, it is a growing share. Considering that convenience and grocery sales were virtually nonexistent on DoorDash and Uber Eats in early 2020, it is clear that they have made tremendous strides. In January 2022, convenience and grocery accounted for about 4.2% of sales on DoorDash and 1.6% on Uber Eats. That’s up from 2.5% for DoorDash and 0.9% for Uber Eats in January 2021.
*Share calculated based on sales from select major convenience and grocery stores
DoorDash has also been pushing its own vertically integrated convenience solution, DashMart. The platform is constantly running offers for DashMart, often offering dollar off discounts like “$10 off orders over $20” or promotions on specific items like “$1 off with Red Bull on orders of $20+”. While DashMart sales have steadily increased throughout the year, they account for less than 12% of convenience orders on DoorDash.
These efforts by DoorDash, Uber Eats, and Grubhub are blurring the lines between meal delivery platforms and pure play grocery platforms like Instacart and Amazon Fresh. Not to mention growing instant needs convenience competitors like Gopuff, which competes head to head against DashMart and convenience chains selling through other third party platforms. As the platforms transform over time, customers will certainly test the options they’re given and YipitData will continue to monitor how their preferences evolve.
For more on convenience and grocery delivery, visit yipitdata.com to connect with our team of analysts. YipitData is the premier provider of alternative data to investment funds and corporations.
