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DoorDash just opened 8 US convenience stores that can deliver household items, spices, and other corner store essentials to you in 30 minutes

Aug 5, 2020, 23:00 IST
Business Insider
DoorDash
  • DoorDash has rolled out the first of a line of convenience stores designed to quickly deliver household items and other corner store products to customers.
  • The DashMart stores will be stocked with items like spice rubs, cough medicine, and dog food from both national and local brands.
  • The new endeavor comes as DoorDash's sales and market share continue to see success as the COVID-19 pandemic keeps people indoors.
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DoorDash is launching the first of its line of online convenience stores as the delivery company continues to cater to an increase in demand during the COVID-19 pandemic.

The company announced in April it was launching a convenience category on its platform, allowing users to order items from the likes of 7-Eleven and Walgreens. But the new stores, dubbed DashMarts, will be "owned, operated, and curated" by DoorDash and will feature products from both national and local brands, according to a company blog post.

Customers can order household essentials like cough medicine and dog food, grocery items like chips and ice cream, and local restaurant products like spice rubs and packaged desserts. Each location will carry about 2,000 items, according to CNBC, and customers can access the stores on the DoorDash platform.

"It's a bit like the express lane inside of a store, whether that store is a grocery store or a convenience store, or a pharmacy," DoorDash CEO Tony Xu told CNBC. "Sometimes, you just need those things that either you forgot, or just need in high frequency." He also said people will be able to receive their delivery in about 30 minutes, per the outlet.

The DashMart stores are now available in eight US cities: Chicago, Minneapolis, Columbus, Cincinnati, Dallas, Salt Lake City, Phoenix, and Redwood City, California. The company has plans to roll out more in the coming months in cities like Denver and Sacramento and Concord, California, just east of the San Francisco Bay Area.

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The new line of stores comes as the COVID-19 pandemic takes a toll on business across various sectors, including the restaurant industry. But on-demand delivery services like DoorDash have experienced success as people are ushered into their homes and restaurant owners cling to delivery platforms as a way to retain business.

These third-party companies charge commission fees that have posed problems for small business owners long before the pandemic hit, making it more difficult for them to turn a profit and maintain healthy margins. But that struggle has been amplified in recent months, and some markets like San Francisco have set temporary commission fee caps as a solution.

DoorDash had previously announced it was planning to go public in February, a move that has since been postponed in light of the pandemic.

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