DoorDash Launches DashMart Fulfillment Services to Boost Retail Growth

DoorDash has unveiled DashMart Fulfillment Services, a new model that enables retailers to strengthen their reach and gain visibility with potential new customers. The model uses DoorDash's network of DashMart locations to handle inventory management, picking, packing, and delivery by Dashers. CVS Pharmacy, Party City, and Kroger are already using the service, allowing DashMart to offer a wide selection of products to shoppers nationwide.

Kroger and DoorDash have expanded their delivery partnership, incorporating the latter's DashMart Fulfillment Services to enhance grocery delivery services. This strategic move is part of Kroger's ongoing effort to grow its digital business, which currently accounts for nearly 9% of its total sales revenue Kroger is expanding grocery delivery services with DoorDash, including in Kentucky^[1].

Beginning October 1, customers will be able to shop Kroger's entire grocery selection through the DoorDash app. This expansion comes as Kroger aims to keep pace with evolving consumer demands for fast and convenient grocery delivery. The partnership will leverage DoorDash's DashMart locations for inventory management, picking, packing, and delivery by Dashers, a service already in use by CVS Pharmacy and Party City [^2, 3].

Kroger's digital business includes online grocery orders, home delivery from its own fulfillment centers, and third-party delivery services like DoorDash, Instacart, and Uber Eats. The retailer has seen a 20% growth in delivery sales this year, outpacing its overall digital sales growth by 5% Kroger is expanding grocery delivery services with DoorDash, including in Kentucky^[1].

DoorDash officials note that Kroger is one of the most-searched retailers on its app, indicating a strong demand for Kroger products. With this new partnership, millions of customers nationwide will have access to Kroger's full grocery assortment through the convenience of on-demand delivery Kroger is expanding grocery delivery services with DoorDash, including in Kentucky^[1].

This expansion is part of a comprehensive review by Kroger of its ecommerce services, with a focus on fast delivery and store-based fulfillment. The partnership with DoorDash is expected to provide Kroger with a significant boost in its digital presence and reach, aligning with its goal of meeting customer preferences for convenience and value [^1, 2].