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Uber Eats extends grocery delivery reach with Albertsons

Last-mile specialist more than doubles markets serving online food shoppers

Russell Redman

July 19, 2021

3 Min Read
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Plans call for Uber Eats grocery delivery to roll out to 1,200 Albertsons Cos. supermarkets this yearUber

Uber Technologies Inc. has landed Albertsons Cos. as a major retail partner for its Uber Eats on-demand delivery service.

San Francisco-based Uber said Monday that Uber Eats grocery delivery is slated to roll out to 1,200 Albertsons Cos. stores this year. Some Albertsons Cos. retail banners previously offered the service through selected locations.

Albertsons Cos. customers — including banners such as Albertsons, Safeway, Jewel-Osco, Acme, Tom Thumb and Randalls, among others — can access the online grocery and food delivery service via the Uber and Uber Eats apps. Uber Pass and Eats Pass users get free delivery for grocery orders over $30.

Uber noted that the Albertsons partnership marks its first major grocery expansion in the United States, more than doubling the same-day service’s reach to over 400 cities and towns since its launch last July. Uber Eats grocery delivery is now available in major markets such as Miami, Dallas, New York City, San Francisco, Phoenix and Washington, D.C., and through regional and local supermarket retailers like Southeastern Grocers and New York’s Red Apple Group.

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Albertsons customers can access the online grocery and food delivery service via the Uber and Uber Eats apps.

Plans call for Uber to add more grocery delivery markets during 2021.

“This past year has been one of incredible growth for grocery delivery,” Raj Beri, global head of grocery and new verticals at Uber, said in a statement. “Today, nearly 3 million consumers order groceries and other essentials each month through Uber, and we’re just getting started. By adding thousands of beloved grocers to our selection this year, we are fast-tracking our efforts to help Americans get everything they need from their favorite supermarket, delivered to their doorsteps.”

Related:Walgreens launches same-day delivery via Uber Eats

Uber also has gone the acquisition and partnership routes to bolster its delivery capabilities and serve new market segments. In December, the company finalized its $2.65 billion purchase of Postmates — following an unsuccessful effort to acquire meal delivery service GrubHub — and then in February purchased on-demand alcohol delivery app Drizly for $1.1 billion. Also, in May, Uber partnered with Gopuff to provide delivery of everyday essentials such as food, drinks, household, personal and beauty care items via Uber Eats.

Those deals came after an October 2019 agreement to buy a majority stake in online grocery service Cornershop, which provided Uber a springboard into the grocery delivery space. Uber acquired the remaining 47% interest in Santiago, Chile-based Cornershop last month.

For Boise, Idaho-based Albertsons, Uber represents another key delivery partner. The grocer, with nearly 2,300 stores in 34 states and Washington, D.C., has been steadily expanding online grocery delivery across its retail banners. Instacart is delivery available through more than 90% of its stores, and last month the retailer unveiled a deal with DoorDash to provide last-mile grocery delivery service at almost 2,000 stores. Some Albertsons retail banners also work with Shipt, a Target Corp. subsidiary.

Related:DoorDash, Uber Eats, Instacart challenge major e-commerce retailers

The expansion stems from a plan to increase use of third-party delivery. In January, Albertsons said it was shutting down its own online grocery delivery operation — offered at about 65% of its stores — in some of its market areas and shifting exclusively to third-party delivery providers. Albertsons discontinued the use of its home delivery truck fleet in 10 states as of Feb. 27.

Edge by Ascential predicts third-party providers of on-demand food delivery — including DoorDash, Instacart and Uber Eats — to overtake some of the largest U.S. retailers in e-commerce sales by 2025.

The researcher’s Edge Retail Insight arm projects U.S. gross merchandise value (GMV) sales to more than double at Instacart and Uber Eats by 2025, surpassing Target.com. And DoorDash, the nation’s largest app-based restaurant delivery service, is expected to eclipse eBay.com in GMV sales by 2025 to become the third-biggest U.S. e-commerce banner, behind Amazon.com and Walmart.com.

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About the Author

Russell Redman

Senior Editor
Supermarket News

Russell Redman has served as senior editor at Supermarket News since April 2018, his second tour with the publication. In his current role, he handles daily news coverage for the SN website and contributes news and features for the print magazine, as well as participates in special projects, podcasts and webinars and attends industry events. Russ joined SN from Racher Press Inc.’s Chain Drug Review and Mass Market Retailers magazines, where he served as desk/online editor for more than nine years, covering the food/drug/mass retail sector. 

Russell Redman’s more than 30 years of experience in journalism span a range of editorial manager, editor, reporter/writer and digital roles at a variety of publications and websites covering a breadth of industries, including retailing, pharmacy/health care, IT, digital home, financial technology, financial services, real estate/commercial property, pro audio/video and film. He started his career in 1989 as a local news reporter and editor, covering community news and politics in Long Island, N.Y. His background also includes an earlier stint at Supermarket News as center store editor and then financial editor in the mid-1990s. Russ holds a B.A. in journalism (minor in political science) from Hofstra University, where he also earned a certificate in digital/social media marketing in November 2016.

Russell Redman’s experience:

Supermarket News - Informa
Senior Editor 
April 2018 - present

Chain Drug Review/Mass Market Retailers - Racher Press
Desk/Online Editor 
Sept. 2008 - March 2018

CRN magazine - CMP Media
Managing Editor
May 2000 - June 2007

Bank Systems & Technology - Miller Freeman
Executive Editor/Managing Editor
Dec. 1996 - May 2000

Supermarket News - Fairchild Publications
Financial Editor/Associate Editor
April 1995 - Dec. 1996 

Shopping Centers Today Magazine - ICSC 
Desk Editor/Assistant Editor
Dec. 1992 - April 1995

Testa Communications
Assistant Editor/Contributing Editor (Music & Sound Retailer, Post, Producer, Sound & Communications and DJ Times magazines)
Jan. 1991 - Dec. 1992 

American Banker/Bond Buyer
Copy Editor
Oct. 1990 - Jan. 1991 

This Week newspaper - Chanry Communications
Reporter/Editor
May 1989 - July 1990

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