DoorDash believes fast grocery delivery is the future

By Danielle Wiener-Bronner, CNN Business

DoorDash is jumping on the fast delivery trend.

Starting Monday, the company is offering a 10- to 15-minute delivery to New York City from a new Dashmart, which stores packaged groceries, housewares and catering items. Customers located in the delivery area will see the new option under a “convenience” tab in the app or on the DoorDash website.

With the launch, DoorDash follows a model that has been adopted by a number of startups trying to shake up delivery in urban areas. Companies like GoPuff, Gorillas, and Fridge No More have set up and stocked warehouses in major cities around the world, with promises of super-fast delivery.

DoorDash offers fast delivery in one place to start, but it hopes to expand into other areas. By considering parameters larger than New York, the company will rethink what it can offer, said Christopher Payne, president of DoorDash.

“In New York, the density is such [that] you can have a very narrow radius around… the store and deliver in 10 to 15 minutes, ”he said. “You’re not going to have that kind of density if you go to the suburbs, but you can deliver quickly,” he said. “Instead of 10 to 15 [minutes], it could be 20 to 30, ”he said.

The pandemic has sped up online grocery shopping, with more and more customers bracing for delivery of this type of food. And with the new option, DoorDash is capitalizing on what it sees as a long-term trend towards speed and convenience.

“There is a long, massive arc of rising consumer expectations,” Payne said. “Bringing goods and services to consumers in minutes, not hours or days… will be a trend that will last for many years to come. “

To set up the new service, DoorDash is hiring around 60 people, Payne said. Employees who work on prompt delivery will have established schedules. In addition to delivering, they will perform other duties like packing grocery orders, customer service and more.

Competition and decline

Fast delivery to New York is a competitive market. To stand out from the herd, DoorDash hopes to attract customers who already use it for other services. Customers who use Dashpass, a monthly subscription that entitles members to free delivery of other benefits, will also receive free delivery for the new service.

In addition to competitors, DoorDash may also have to deal with disgruntled local businesses. New York City bodega owners decried the new startups, saying they couldn’t compete with VC-backed services and urging Manhattan Borough President Gale Brewer to call for investigation in the new delivery warehouses.

“As we determine the capabilities required to do a 10 to 15 minute full scale delivery, we will open this up as a platform and offer it to bodegas, convenience stores and other stores there. where it fits their needs, ”Payne said, adding that he is already working with local stores on some of his platforms and is in the process of establishing a small business advisory board in New York City.

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