grocery

DoorDash, Target Step Up Their Online Grocery Offerings

It was a big week for online grocery updates.
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Francis Scialabba

· less than 3 min read

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According to this week’s online grocery news, I may have deployed “big delivery energy” a few editions too soon. Let’s recap.

At the front door: DoorDash now delivers groceries from Smart & Final, Meijer, and Fresh Thyme. Like DoorDash’s convenience store tie-in, grocery orders are all placed within DoorDash’s app. Unlike rival services, all deliveries are guaranteed in an hour.

At the curbside: Target’s curbside grocery pickup program is available nationwide after the service skyrocketed 734% in Q2. Expanding pickup options meant remodeling some stores ahead of schedule—Target originally projected online grocery pickup would go coast to coast by the holidays.

Put them together...and you’ve got companies rushing to accommodate exploding online grocery sales at every possible touchpoint. By Business Insider Intelligence’s latest estimate, U.S. online grocery penetration will surpass 50% by Q1 of 2021, up from 24% in 2019.

While all grocers that go digital will gain convenience points with consumers, it’s still a Walmart v. Amazon game. Walmart narrowly surpassed Amazon as the No.1 online grocery retailer, grabbing 30% of pantry hauls to Amazon’s 27%, according to a TABS Analytics survey this month.

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