DoorDash on Tuesday announced a deeper dive into the retail world by allowing independent merchants on Shopify that also have a physical store to easily add their product catalog to the DoorDash marketplace, further highlighting how it is becoming a competitor to Amazon, Walmart, Uber Eats, Roadie and legion of independent couriers in the on-demand e-commerce delivery space.
The delivery platform has been expanding for several years beyond its origin model of delivering restaurant meals into grocery and retail delivery. Last month, DoorDash (NASDAQ: DASH) announced a partnership with Autoparts.com for its gig drivers to deliver parts orders for the online retailer in under an hour.
The Shopify (NASDAQ: SHOP) integration targets small-and-medium sized local businesses as the next growth category. Retailers can add their products to the DoorDash marketplace by enabling a new sales channel within the Shopify app store, with no separate onboarding process, manual catalog uploads or disruption to existing operations, DoorDash said in a news release.
““Merchants want to sell wherever their customers are, and increasingly that means meeting them with speed and convenience,” said Atlee Clark, vice president of partnerships at Shopify. “This integration puts local retailers in front of millions of DoorDash shoppers and turns same-day demand into sales, all managed inside Shopify.”
DoorDash said products and inventory are automatically aligned in the system so when a customer orders what’s on DoorDash always matches what’s on the shelf, without the retailer having to manually manage stock levels.
DoorDash first migrated from restaurant and pharmacy deliveries four years ago in a deal with Sephora. In October, the company began offering fulfillment services for retailers such as CVS and Party City, using its network of DashMart neighborhood stores.
The DashMart locations provide retailers with an additional sales channel and handle the entire process, from inventory management, picking, packing and delivery by drivers who use the company’s app to accept assignments.
In the spring, DoorDash expanded its presence in the apparel sector through partnerships with Urban Outfitters, Dolce Vita, Rally House and Steve Madden. DoorDash began offering last-mile delivery for Dollar Tree at more than 9,000 stories in May. DoorDash now has tens of thousands of national retail stores connected to its marketplace.
More than 200,000 auto parts and accessories are now available for delivery on-demand through AutoParts.com on the DoorDash app, in partnership with a network of independent automotive parts distributors, under a deal between the companies in June.
Auto parts are one of the most time-sensitive purchases because buyers often need a part to complete a repair that is in progress and quickly get back on the road.
In April, Ace Hardware picked Uber Eats to handle last-mile delivery from its stores.
DoorDash management said earlier this year that 30% of monthly active users order from categories beyond restaurants.
Click here for more FreightWaves/American Shipper stories by Eric Kulisch.
Write to Eric Kulisch at ekulisch@freightwaves.com.
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