IGA and DoorDash team up in Australia

Date : 02 March 2021

Nick Miles

Head of Insight - Asia Pacific

IGA in Australia has teamed up with logistics provider DoorDash to offer grocery delivery from 100 of its supermarkets.

Over 1,600 SKU's available within 45 minutes

DoorDash will help IGA ramp up its online grocery delivery business that it fast-tracked to market last year due to the global pandemic. The partnership means that stores in Melboure, Sydney, Brisbane, Perth, Adelaide, Cairns, Toowoomba, Gold Coast, Wollongong, Rockhampton, Townsville, Albury and Bathurst are now listed on the DoorDash app, with further locations to be added soon. The service is offering over 1,600 SKU's and is promising that items will be deliver within 45 minutes of orders being placed.

Third party delivery partnerships on the increase

Using third party delivery providers is a great way for retailers to rapidly increase capacity and also pass on the most expensive part of the online grocery delivery model. However, it does come with the trade off that retailers lose control of the customer experience. With IGA stores independantly operated, finding a delivery solution to rapidly ramp up capacity is a smart move. The pandemic, coupled with the growing trend of qcommerce (impulse grocery purchases online) means that we are seeing more and more retailers use third party logistics companies to deliver groceries. Coles has been offering delivery via Deliveroo and UberEats for a number of years, while Woolworths expanded its service via UberEats last year and also partnered with startups Drive Yello and Sherpa to deliver orders.

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