Dive Brief:

• Grubhub has started providing delivery services to independent grocers through an arrangement with e-commerce technology supplier Mercato, the companies announced Thursday.
• Shoppers can currently place orders for groceries, alcohol and other goods on the Grubhub Marketplace with a subset of the more than 950 food retailers Mercato works with. All of those retailers will be able to reach customers via Grubhub during the coming weeks.
• Mercato and Grubhub are positioning their tie-up as a way to help independent grocers expand by offering them access to more potential customers.

Dive Insight:

The arrangement allows people to use Grubhub’s app or website to buy items from retailers who use Mercato to handle online orders. Grubhub drivers deliver orders from the retailers’ locations to shoppers, and customers enrolled in Grubhub’s membership program will not have to pay a delivery fee on eligible orders they place with Mercato-affiliated grocers.

Mercato, which specializes in providing online grocery capabilities to smaller retailers including delis, seafood and produce markets and bakeries, said it has partnerships with merchants in about 320 cities in 38 states. Grocers the company works with include Boston Public Market, Citarella, Eataly and Kol Tuv Kosher Foods and Grace’s Marketplace.

“We’re essentially expanding our online reach and increasing online sales without having to set up additional integrations, manage multiple platforms, or incur additional fees,” Pina Doria Soares, owner and controller of Grace’s Marketplace, said in a statement.

Grubhub, which has built its brand around its restaurant delivery business, also carries a selection of foods, beverages and other goods through its Grubhub Goods convenience channel.

The collaboration between Mercato and Grubhub comes as convenience delivery company Gopuff and produce seller Misfits Market have also started working together to reach online grocery shoppers looking for speedy service. Under a deal announced on Wednesday, Gopuff is fulfilling orders for more than 300 items Misfits sells, including dairy products, meats and fresh produce.

Misfits, which focuses on preventing perishable products from going to waste, in February began providing logistics services to other grocers. Misfits significantly bulked up its distribution capabilities in 2022, when it acquired e-grocer Imperfect Foods.