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05/20/2022

Grocery Outlet launches second on-demand delivery pilot

Dan Berthiaume
Senior Editor, Technology
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Grocery Outlet is teaming up with Uber Eats.

Grocery Outlet Holding Corp. is expanding its presence in the e-commerce channel.

The discount grocer, which offers name-brand products at prices generally 40% to 70% below those of conventional grocery retailers, is teaming up with Uber Technologies Inc. to pilot on-demand and scheduled grocery delivery.The pilot is taking place at 72 independently owned and operated Grocery Outlet stores across California, Oregon, and Washington – including the metro areas of Portland, Seattle, San Francisco, San Jose, Sacramento, Palo Alto, and Sunnyvale.

Through this partnership, Grocery Outlet customers can shop through Uber and Uber Eats to have products delivered, on-demand, to their door. To mark the launch, pilot customers will receive a $0 delivery fee on their first Grocery Outlet order of $30 or more, while Uber One paid subscription program members will receive $0 delivery fees on all Grocery Outlet orders with a $15 minimum purchase.

Grocery Outlet has been branching into e-commerce as the company undergoes general growth. The retailer recently opened its 400th store, in Hailey, Idaho, just south of the Sun Valley ski resort and east of Boise.

Grocery Outlet initially entered the e-commerce vertical in October 2021, when it launched a six-month online delivery pilot that made daily essential and staple products from 68 of Grocery Outlet’s stores across California available for same-day online delivery via Instacart.

Uber grows retail delivery presence
Meanwhile, Uber has been expanding its roster of retail delivery partners, both in and out of the grocery vertical. For example, earlier in May, leading grocery conglomerate Albertsons Co. extended the availability of Uber and Uber Eats on-demand and scheduled grocery delivery to more than 2,000 of its banner stores nationwide. In addition to Albertsons stores being found within Uber Eats’ grocery category, consumers can order Albertsons items for delivery through “express” lanes within the convenience section of the Uber app.

And in March 2022, BP took an existing partnershipwith Uber Eats to a global level. The new collaboration covers retail sites on the West Coast of the U.S., as well as in Australia, New Zealand, Poland, and South Africa.

As part of the agreement, Uber Eats and BP will work to introduce delivery options onto BP’s own app, BPme, initially planned to be available in the U.S., U.K. and Australia by the end of 2023, supported by Uber Direct. This new offer will allow BP to directly connect its customers to Uber Eats delivery drivers via the Uber Direct platform.

"We are excited about the long-term potential of our e-commerce initiative at Grocery Outlet and this new partnership with Uber," said RJ Sheedy, president of Grocery Outlet. "We think it's important to make our great-value products available across another platform and to a greater audience, introducing Grocery Outlet to customers who may not have shopped with us before."

"Our goal is to provide a reliable and affordable grocery delivery option that works for everyone, no matter your budget," said Oskar Hjertonsson, head of grocery at Uber. "We see our partnership with Grocery Outlet as an opportunity to do just that by delivering customers the brands they like at the Grocery Outlet prices they love, on-demand, right to their door.”

Based in Emeryville, Calif., Grocery Outlet has more than 400 stores in California, Washington, Oregon, Pennsylvania, Idaho, and Nevada