Coronavirus (Covid-19): DoorDash evolves its business model for convenience store delivery

Stewart Samuel
Program Director - Canada
@RetailAnalysis

Date : 03 April 2020

One of the leading crowd-sourced, on-demand restaurant delivery companies in the US, DoorDash, is evolving its business model to offer delivery from convenience stores.

Enabling delivery of essentials from more than 1,800 stores

DoorDash is partnering with several national and regional convenience store chains, including 7-Eleven, Wawa, Casey’s General Store, and Circle K. Shoppers will be able to order a range of household essentials for home delivery, using the company’s contact-free drop off solution.

The partnership extends to around 1,800 convenience stores across the US with additional locations being added daily. Many of these companies also have extensive foodservice operations which DoorDash will be able to support through its core capabilities.

Demand for online delivery outpacing capacity

DoorDash started to pilot this programme earlier in the year. However, the Coronavirus (Covid-19) pandemic led the company to accelerate its full launch as the demand for online deliveries grew at pace across the sector. As in other countries, most retailers in the US have not been able to fully meet the accelerating demand for online services, particularly as mandatory notices have been issued for people to stay at home.

Last month, the leading on-demand grocery delivery company, Instacart, announced plans to more than double the number of personal shoppers as it saw order volumes grow by more than 150% year-on-year. Most food retailers are recruiting to expand their online services.

Evolving business models

Like DoorDash, throughout the pandemic companies have been evolving their business models. Many have been developing new products and services to help improve access to food items during a period of unprecedented demand:

  • Several restaurant operators have become grocery retailers
  • Foodservice wholesalers have made their products available through supermarkets
  • Online retailers have started to offer fixed-price boxes of grocery essentials

What we have seen during this crisis is that many companies have accelerated programmes, focused on solving customer-related challenges. Many will be better positioned post-crisis to implement change programmes at pace through drawing on capabilities developed through this period.

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