Dive Brief:
- Grubhub announced on Tuesday the nationwide launch of its on-demand convenience channel, Grubhub Goods. The channel offers delivery from more than 3,000 locations across the country and follows a successful pilot in Manhattan in collaboration with 7-Eleven, which included roughly a dozen stores.
- Grubhub Goods locations with 7-Eleven reach a "vast majority" of Grubhub customers across the country, per the release. The service's offerings include the convenience store's most popular items, including energy drinks and personal care items.
- Delivery firms continue to expand in new categories to generate profit and meet increasing consumer demand for efficient delivery of a swath of product types. DoorDash, for example, just started floral delivery, and Uber Eats added a "Babies and Kids" category that delivers items like diapers.
Dive Insight:
Convenience items are becoming a key asset for delivery aggregator diversification as these platforms look to capture more consumer groups.
Uber Eats recently spotlighted its expanded "Don't Eats" selection of convenience goods in a Super Bowl ad, for example. In December, DoorDash introduced a virtual convenience store brand, DashMart, to meet demand for 15-minute delivery. DoorDash also recently added DoubleDash, which allows customers to order from restaurants and nearby convenience stores in one transaction without extra delivery fees or order minimums.
For Grubhub, the expansion of Grubhub Goods builds on a nearly two-year partnership with 7-Eleven.
"It was a no-brainer to team up with the convenience leader again and bring their operational expertise and scale to Grubhub Goods," Kyle Goings, director of growth and new verticals at Grubhub, said in the release. "Diners have come to expect more choices when they land on Grubhub, including convenience options, which we see as a natural extension of our marketplace and a way to bring more value to the entire Grubhub ecosystem."
This expanded partnership with the country's largest c-store chain could help Grubhub gain back some market share as more customers demand bundled convenience deliveries. The aggregator is also growing awareness of its Grubhub Goods offering through a promotion that gives 50% off orders $15 and up, which could boost orders for both its c-store and restaurant partners.
The company claims those who order convenience items on the platform tend to also order more from restaurants in the subsequent month. This additive behavior has also been observed by Uber Eats as that company expands into new verticals.
via https://www.aiupnow.com
Alicia Kelso, Khareem Sudlow
