- Loblaw is Canada’s largest grocery chain.
- DoorDash will deliver within 30 minutes between 5,000-8,000 products marketed under Loblaw’s “President’s Choice” brand.
- This is the first partnership of its kind for DoorDash, the market leader in restaurant delivery in the US.
DoorDash has won an exclusive agreement to construct warehouses for Canada’s largest grocery chain, strengthening its fight with Instacart.
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The warehouses will deliver within 30 minutes between 5,000 and 8,000 products marketed under Loblaw’s “President’s Choice” brand, which has been licenced to a newly-formed DoorDash subsidiary. The corporations did not disclose the partnership’s financial details.
This is the first partnership of its kind for DoorDash, the market leader in restaurant delivery in the United States, as it tries to expand its capabilities for fast delivering groceries and convenience items. It intends to build similar relationships with grocery chains in other regions, including the United States, where total online grocery purchases reached $7 billion in May, according to Brick Meets Click.
“Our objective has always been to meet merchants where they are and to help them lean into . . . the digital convenience economy,” said Fuad Hannon, DoorDash’s head of new verticals.
The arrangement intensifies its competition with Instacart, which was formerly Loblaw’s only partner and seeks to develop its own warehouse partnerships with some of its 750 retail partners in North America. Instacart will continue to provide Loblaw on its marketplace, but customers will no longer have access to the sub-30-minute delivery selection.
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Dedicated warehouses are regarded as the next frontier for online grocery retailers. The structure enables companies to fulfil more orders per driver each hour than if they were to send employees into stores to choose things and deliver them to clients.
