The digital convenience store isn’t a new concept. Back in the late 1990s, during the first online boom, Kozmo famously promised the world delivered in under an hour. Kozmo also went out of business. But times have changed, and one silver lining of the pandemic for delivery businesses has been a massive uptick in usage from consumers who want the most convenient way to get their carry out orders or groceries delivered with as little human contact or fuss as possible. DoorDash is leveraging this new surge in business and launching DashMart, an online convenience store that makes those “in between” trips for milk, eggs and ice cream easier than ever and delivered in hours.
Data And A Built-In Customer Base Can Make Expanding Products And Services A No-Brainer For Digital Brands
As a third-party delivery service, DoorDash grabbed 45% of all on-demand meal delivery orders in June. And, the delivery service further expanded their reach by partnering with stores like Wawa, CVS and 7-Eleven to offer household item deliveries. Additionally, despite the fact that customers bounce around from app to app depending on which one delivers from the restaurants they like, 51% of DoorDash customers used them exclusively in the first quarter of 2020. This large and consistent market share made DoorDash’s choice to launch DashMart an easier one, given the data and information they already have on hand for targeting audiences and launching promotions.
No More Middleman Means More Revenue For DoorDash + Local Partnerships
DashMart is an opportunity for DoorDash to leverage their newly scaled business while also becoming a purveyor themselves. Grocery Dive notes, “With DashMart, DoorDash has moved past fulfillment services into becoming a retailer in its own right. The company has some key built-in advantages, including its relationships with major product brands, customer data and millions of shoppers on its platform. And its experience optimizing delivery, not to mention its network of drivers, also offers a leg up as it backs into food retailing.”
DoorDash has committed to partnering with local vendors in the eight cities where DashMart will launch and also has dark warehouses in locations around the country. (Dark warehouses are fulfillment centers for pick-up and delivery orders exclusively and usually have a smaller assortment of grocery items than a typical store.)
Increased Business And Consumer Attention Allows Brands To Expand And Innovate
As brands, like DoorDash, adjust to the silver linings that came with the hardships of the pandemic, many are using the increased revenue growth and consumer attention as an opportunity to sell new goods and services. Brands that can effectively leverage their first-party data, subscriber lists, app usage and customer loyalty are in ideal positions to try new innovations.
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