Dive Brief:
- E-commerce platform Rosie, which serves independent retailers, has teamed up with DoorDash to provide grocery delivery across the U.S., according to a company press release.
- Rosie’s retail partners utilize the platform to power their e-commerce operations so customers can shop, build lists and place orders online with their local independent grocer of choice. The addition of delivery is intended to offer an end-to-end experience.
- The companies said delivery through DoorDash will be an "affordable" option for shoppers, but did not provide a specific fee structure. For existing retail partners, Rosie will integrate DoorDash into their operations at no additional cost.
Dive Insight:
Grocery delivery is a labor-intensive and costly undertaking, especially for independent retailers. That said, more than 60% of the companies Rosie works with currently offer grocery delivery, mostly through in-house resources, the press release said.
Partnering with DoorDash aims to help retailers streamline and outsource delivery for more cost-effective, efficient on-demand service. It will also make it easier for grocers to add delivery as an option if they aren't doing so already.
Rosie's retail partners include companies like Portland-based Rosauers, Salt Lake City-based Associated Food Stores and Arlan's Market in Texas.
DoorDash, which recently filed confidentially for a public offering, has been steadily pursuing a bigger role in the grocery industry. The partnership with Rosie rings similar to the one DoorDash struck with Mercato last summer to offer same-day grocery delivery. Mercato, like Rosie, works with independent retailers and regional grocery stores. DoorDash has also moved closer to grocery as the delivery platform for Wegmans Meals 2 Go.
Rosie is turning to DoorDash because of the platform’s expertise in logistics. The brand recognition DoorDash has gained in the restaurant industry could also be a benefit and may encourage customers to try grocery delivery powered by DoorDash.
Unlike larger online grocery entities like Shipt and Instacart, Rosie is not a delivery-first platform, nor does it work with large chains. With the addition of delivery, however, it could see a boost in business from smaller, local and regional grocery stores.