Grubhub will ship Rite Aid products to 16 states

Diving Brief:

  • Grubhub will offer Rite Aid products for delivery on Gruhbub Marketplace. The pharmacy chain partnership covers 2,000 stores in 16 states, the companies announced Thursday.
  • The Rite Aid deal marks Grubhub’s first national pharmacy partnership, according to the press release. The partnership builds on a similar deal with GoPuff announced last month.
  • In a race for profitability and market share, large delivery companies have entered new verticals, added marketing features and acquired smaller competitors over the years. the last two years.

Overview of the dive:

Grubhub said pharmacy products would do well on delivery services because customers are less likely to travel and more likely to order delivery when sick. According to a survey conducted by Grubhub, around 47% of customers would not want to visit a pharmacy while sick, and 67% would want to order over-the-counter medication from a delivery service.

“This partnership couldn’t come at a better time as we head into the winter months where delivery becomes an even more important way for people to get what they need,” said Ariella Kurshan, vice -senior president of growth at Grubhub, in a statement.

Grubhub’s domestic market share has lagged since the start of the COVID-19 pandemic, according to Bloomberg Second Measure. This lackluster growth compared to DoorDash and Uber Eats may put pressure on the company to enter new verticals, as its competitors redone the last year or two. Uber eats and DoorDash started working with Rite Aid in 2021.

The company responded to this competition by increasing the types of products offered. Grubhub launched Grubhub Goods earlier this year to provide a convenience store 7-Eleven items nationwide. In July, Grubhub and Amazon gave away a year of free Grubhub+ to Amazon Prime members. In August, Grubhub offered a free year of its premium program to Bank of America cardholders. The company has also focused on growing college campus delivery, launching autonomous robots across multiple campuses. These last months.

According to Grubhub, customers who order delivery from convenience stores are more likely to order from restaurants, making them valuable as repeat customers.

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Rozella J. Cook