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Date: 2022-06-22 20:43:55
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Rapid delivery companies have crashed and burned in the US. But that's not stopping DoorDash from doubling down on express grocery delivery.
On Wednesday, DoorDash announced plans to add 30-minute delivery in Canada later this summer through a partnership with Loblaw, Canada's largest grocery retailer. PC Express Rapid Delivery, the name of the 30-minute delivery service in Canada, will launch in August across major cities like Vancouver, Calgary, and Toronto.
This is DoorDash's third move in the rapid delivery space, which has seen several startups collapse or downsize operations amid a looming recession and high inflation in the US.
In December, DoorDash launched 15-minute rapid delivery in New York City using DashMarts, dark stores that house DoorDash's direct-to-consumer groceries. DoorDash later partnered with Albertsons in February to launch 30-minute express delivery from 330 of the supermarket chain's banner stores in more than 20 cities.
"Consumer expectations tend to only move in one direction. We want to rise to that occasion," Hannon told Insider.
The Canadian express service will operate similarly to DoorDash's rapid delivery service in New York City, where couriers are employees, not gig workers, who pick and pack the deliveries inside warehouses. In Canada, these fulfillment centers, or dark stores, will be stocked with about 5,000 to 8,000 items curated from Loblaw banner stores, Hannon said.
Most ultrafast delivery operations offer about 2,000 to 4,000 items. Hannon said DoorDash is offering a larger inventory of popular goods as the delivery operator has learned in other markets that customers really value more choice.
In New York City, for example, customers are using rapid delivery as an entirely new use case such as getting groceries last minute to "prepare a meal at home," he said.
DoorDash is expanding in the rapid delivery space at a time of uncertainty in the sector.
When it launched 15-minute delivery in New York City last year, it was going up against several players such as Gopuff, Getir, Gorillas, Jokr, Buyk, and Fridge No More. The latter three have since shut down US operations, while Getir and Gopuff have made major staffing cuts as investors demand profitability from fast-growing startups.
Hannon said DoorDash continues to lean into its rapid delivery service in New York.
"We continue to see real strong customer demand and excited about use cases," he said.
In March at the Shoptalk retail conference, DoorDash President Christopher Payne said New York shoppers are blown away by the speedy service. The former Amazon executive said data showed that consumers were using ultrafast to order a range of grocery items — from a missing dinner ingredient, such as chicken broth, to ice cream late at night.