DoorDash is teaming up with Albertsons for on-demand grocery delivery, boosting the challenge to Amazon and Walmart

• Albertsons and DoorDash are partnering for on-demand grocery delivery from nearly 2,000 stores.
• This builds upon DoorDash's expansion last year into grocery delivery, which spiked in the pandemic.
• Albertsons joins a number of chains challenging Amazon and Walmart in the grocery delivery wars.

DoorDash and Albertsons are teaming up for on-demand grocery delivery, joining a race led by Amazon and Walmart.

Together, the companies will offer delivery from nearly 2,000 Albertsons banner stores across the US, including Safeway, Vons, and Jewel-Osco, according to a press release issued Monday. Customers can receive orders at their doors within an hour, and there is no minimum order requirement for the deliveries.

"Consumers' desire to get everything in their neighborhood on-demand has increased dramatically," said Fuad Hannon, DoorDash's Head of New Verticals, in the release. "We are creating a one-stop shop for customers to access any of the essentials they need, delivered to their doorstep."

More than 40,000 grocery items will be available for delivery from Albertsons stores through the new partnership. Orders can be made on the DoorDash app, and in some markets customers can also order groceries on their local Albertsons store's website and get same-day delivery through DoorDash Drive.

The partnership also includes cooperation on other initiatives, including "launching a custom loyalty program, expanding delivery hours, and offering a unique selection including specialty items, prepared meals, meal kits and new concepts," according to the release.

From Monday through June 30, customers can get 40% off of their first Albertsons grocery orders, up to $40 off, with the code "GROCERY."

The partnership signals growing interest from DoorDash to get in on the grocery delivery market. The company had started delivering groceries last summer. Around the same time, Walmart and Instacart teamed up to offer same-day delivery. The moves capitalized on the spike in grocery deliveries during the pandemic, when many consumers ditched in-person shopping out of concern that they'd contract the coronavirus in stores.

Albertsons noticed the difference. The company says its digital sales growth was up 258% in the last fiscal year, according to the release.