BJ’s Wholesale partners with DoorDash to offer grocery delivery

Diving Brief:

  • BJ’s Wholesale Club has launched a partnership with DoorDash to provide an on-demand grocery delivery service, the companies announced Monday in a joint press release.
  • The service, available to shoppers at BJ’s 226 locations in 17 eastern states, is not limited to BJ members. Customers who have a BJ subscription, however, are entitled to lower prices.
  • DoorDash has aggressively strengthened its presence in the competitive grocery delivery space, increasing the pressure on rival company Instacart.

Overview of the dive:

The partnership with BJ’s follows DoorDash’s announced last month that he had launched an “express” grocery service which allows grocers to place orders with customers in less than 30 minutes. DoorDash said Albertsons would be the first supermarket company to take advantage of the fast delivery service, which goes against a similar service instagram unveiled last June. instagram currently provides a 30-minute delivery service for grocers, including Kroger and The giant corporation.

The arrangement between DoorDash and BJ’s gives the two companies an opportunity to ramp up their presence in grocery e-commerce at a time when many shoppers are prioritizing convenience when shopping for food and other essentials.

BJ’s is the first club retailer to join DoorDash’s online marketplace and offers food including fresh produce, deli meats and dairy on demand through the platform. Shoppers can place on-demand orders for “thousands” of items sold by BJ’s using the DoorDash app, according to the announcement.

“We see the convenience trend going in one direction, with grocery delivery being no exception,” said Shanna Prevé, vice president of business development at DoorDash, in a statement.

DoorDash customers who belong to the e-commerce provider’s DashPass program will not be charged a delivery fee for orders of $25 or more. Additionally, DoorDash is offering a 30% discount on orders of $100 or more, capped at $40, through April 12.

DoorDash will also provide same-day delivery of products sold on BJ’s website through the delivery provider. DoorDash Reader white-label e-commerce platform, the press release notes.

BJ’s saw strong growth in its grocery business in recent months even as its earnings for the fourth quarter missed Wall Street expectations. In February, the company announced that it had agreed to buy four refrigerated distribution centers to enable it to manage its perishable supply chain on its own.

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