(FT) DoorDash has partnered with Canada’s leading grocery chain Loblaw to increase its delivery footprint in the country.
The partnership allows DoorDash to build warehouses for Loblaw, which will handle delivery within 30 minutes for up to 8,000 products.
The deal is expected to streamline the delivery of groceries and convenience items in Canada, heightening DoorDash’s rivalry with Instacart. Instacart had previously served as Loblaw’s exclusive partner.
DoorDash is optimistic about creating similar arrangements with grocery chains in other markets. The US food delivery firm aims to create its own warehousing partnerships for around 750 retail firms in North America.
Instacart will still retain Loblaw on its marketplace. Customers will, however, be denied access to the selection offered for sub-30 minute delivery.
The partnership between Lowlaw and DoorDash comes when dedicated warehouses are increasingly being seen as the next innovation frontier for online grocery. The format is credited for allowing quicker order fulfillment.
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