Grubhub expands into grocery delivery with Mercato

An online delivery platform is partnering with a digital marketplace for independent grocers.

Grubhub, which began as a restaurant delivery service but also fulfills digital orders from drugstore and convenience retailers such as CVS and 7-Eleven, is now delivering products from Mercato's participant base of more than 950 grocery, convenience and alcohol retailers.

Now, Grubhub customers can order from hundreds of independently-owned local retailers that are available on the Mercato delivery platform, with all Mercato retailers joining the partnership over the next few weeks. 

This first-ever third-party delivery partnership for Mercato is designd to enable Grubhub to expand its selection and to let Mercato retailers grow their business and e-commerce footprint with access to Grubhub's millions of users.

Independent retailers across 38 states and more than 320 U.S. cities, including New York City, Chicago, Los Angeles, Philadelphia and Boston, participate on the Mercato platform. Retailers pick and pack individual orders that are then picked up by customers or delivered by Grubhub's fleet of drivers. Retailers utilizing Mercato include delis, seafood and produce markets, bakeries, butcher shops, and natural foods stores.

"Grubhub started as a marketplace for independent restaurants, so it's only fitting that as we expand into the grocery space it's first with a partner that works with independent grocers," said Craig Whitmer, VP of new verticals at Grubhub. "By joining forces with local grocers, we're not just delivering for our customers, but we're delivering for small businesses to help grow their online presence. Our customers can now get more of what they need on Grubhub while Mercato's merchants gain access and increased visibility among our customers."

"This partnership represents a fantastic opportunity for Mercato merchants to reach new customers and grow their business through Grubhub's extensive customer base," said Bobby Brannigan, CEO and founder of Mercato. "We've developed a purposefully-built inventory management and order fulfillment platform for local grocers, seamlessly integrating with over 87 point-of-sale systems, thereby enabling merchants to effectively manage online orders. This collaboration will stimulate increased demand for our merchants, empowering them to capitalize on the efficient system we have developed to operate a profitable eCommerce business."

To order from a Mercato retailer via Grubhub, customers can select the grocery button within the Grubhub app and online, where all available Mercato retailers will be accessible. Customers who are members of the Grubhub+ paid membership service will have access to $0 delivery fees on eligible orders from participating Mercato retailers.

Based in Chicago, Grubhub is part of JustEatTakeaway.com, a U.S. food ordering and delivery marketplace, and features more than 355,000 restaurant partners in over 4,000 U.S. cities.

Mercato was founded by Bobby Brannigan, the son of a neighborhood grocer in Brooklyn, who saw his father needed to modernize his inventory and delivery systems to stay in business and better serve his shoppers.