United Natural Foods
Wholesaler United Natural Foods Inc. on Thursday announced it has entered into a reseller agreement with the last-mile logistics platform DoorDash, bringing on-demand grocery delivery solutions to its independent retail customers through the DoorDash marketplace.
The deal gives local grocers the opportunity to leverage the DoorDash platform to build an e-commerce and delivery offering that meets the needs of their customer base while enabling UNFI to expand its end-to-end and last-mile delivery services to its suite of professional service solutions, the companies said.
Independent retailers delivered $6.6 billion in sales for Providence, R.I.-based UNFI in its last fiscal year, although sales dipped by 0.9% on a year-over-year basis, primarily due to same-store declines as they lapped pandemic demand.
UNFI said it was the first food wholesaler to partner with DoorDash as that company expands its delivery business from restaurants to retail. UNFI said independent retailers could add the offering to existing e-commerce services with an eye on exposing shoppers to DoorDash’s 23 million users.
“Our relationship with DoorDash will make it easier for independent retailers to offer online grocery ordering and delivery. We know demand for this functionality continues to be very strong, and to remain competitive retailers need solutions that offer simple installation and avoid extra labor costs,” said Matt Whitney, UNFI’s chief strategy and innovation officer, said in a release. “As the leading last-mile logistics company, DoorDash already has the extensive logistics network in place for grocers to leverage.”
The companies said the new offering would help independents grow their businesses, attract new shoppers and retain their current customer base with the ability to service more online customers in hard-to-reach areas. The combination of increased convenience and a wider delivery area should drive greater loyalty and increased basket size among online shoppers, they said.
“We are excited to work with UNFI to empower local grocers to build an e-commerce and delivery offering that will give customers access to robust local grocery selection on the DoorDash app,” Fuad Hannon, vice president of new verticals at DoorDash, said. “We are proud to play a part in helping local grocers grow their businesses and helping consumers access convenient, on-demand grocery delivery from their local neighborhoods.”
UNFI Professional Services group offers a comprehensive suite of services for independent retailers, with more than 150 customizable solutions, ranging from pricing support to store remodels, designed to allow them to simplify operations.
Cardenas Markets, a UNFI-affiliated customer with 59 locations in California, said Thursday it was adding DoorDash delivery.
“We understand our customers’ shopping preferences continue to evolve, and Cardenas Markets is committed to providing convenient methods for our customers to shop with us,” Adam Salgado, chief marketing officer for the Ontario, Calif.-based Hispanic retailer, said. “Our partnership with DoorDash allows us to further this commitment by providing our valued customers an additional and easily accessible way to shop for our wide variety of product offerings with average delivery in an hour.”
In addition to groceries, customers can also shop and order from an expansive selection of authentic Hispanic dishes prepared daily from Cardenas Markets’ famous Cocinas.
Cardenas is available on DashPass, DoorDash’s membership program that offers members unlimited delivery and reduced service fees. DashPass members can enjoy these benefits on all eligible orders of $25 or more from Cardenas, the companies said.
Get today’s need-to-know grocery industry intelligence. Sign up to receive texts from Winsight Grocery Business.