Grubhub Partners with Albertsons Companies for Nationwide Grocery Delivery

Rhea-AI Summary

Grubhub (LSE: JET, AMS: TKWY) has partnered with Albertsons Companies (NYSE: ACI) to deliver groceries from nearly 1,800 stores, including Albertsons, Safeway, Vons, Jewel-Osco, Shaw's, ACME, and Tom Thumb. This partnership makes Albertsons the first national grocery retailer on Grubhub's Marketplace, enhancing customer convenience and variety through the Grubhub app and website.

Grubhub+ members will benefit from unlimited $0 delivery on eligible orders from Albertsons. This collaboration builds on Grubhub’s previous partnership with Mercato and continues its expansion into grocery and convenience delivery.

Positive

• Partnership with Albertsons Companies expands Grubhub's grocery delivery to nearly 1,800 stores.
• Albertsons is the first national grocery retailer on Grubhub's platform.
• Grubhub+ members receive benefits like unlimited $0 delivery on eligible orders.
• Continued expansion of Grubhub’s product offerings into grocery and convenience sectors.

Negative

• None.

Insights

Market Research Analyst

The partnership between Grubhub and Albertsons Companies represents a significant expansion in the grocery delivery market. Albertsons is one of the leading grocery retailers in the U.S. and integrating nearly 1,800 of its stores into Grubhub’s platform can potentially boost both companies' market presence. Grubhub is diversifying its offerings, moving beyond restaurant meals to include grocery deliveries, which aligns with the growing trend of online grocery shopping.

The opportunity for customers to order groceries through Grubhub can help Grubhub tap into a steady revenue stream, widening its customer base. For Albertsons, this collaboration offers a new distribution channel, appealing to the increasing demand for convenience among consumers who prefer online shopping and home delivery.

This partnership could strengthen Grubhub's competitive positioning against other delivery services like Instacart and Amazon Fresh, while Albertsons can leverage Grubhub's established delivery infrastructure to enhance customer satisfaction and loyalty.

Financial Analyst

Financial Implications: The collaboration with Albertsons could have promising financial outcomes for both entities. Grubhub's revenue can see an uptick as they take a commission on grocery orders, complementing their existing restaurant delivery income. Additionally, Albertsons could see an increase in sales volume as it gains exposure to Grubhub’s extensive user base.

Investor Perspective: For investors, the partnership signals a strategic move to capitalize on the booming online grocery market, which has seen significant growth post-pandemic. This could potentially drive shareholder value for both Grubhub and Albertsons. Albertsons’ stocks might experience a positive impact due to the expanded market reach and increased convenience for customers leading to higher sales.

However, investors should also consider potential risks such as the competitive nature of the grocery delivery market and the operational costs associated with maintaining a broad delivery network. Monitoring subsequent earnings reports will be important to gauge the financial impact accurately.

First national grocery retailer to partner with Grubhub, offering delivery from nearly 1,800 Albertsons Cos. stores

CHICAGO and BOISE, Idaho, June 25, 2024 /PRNewswire/ -- Grubhub (LSE: JET, AMS: TKWY) and Albertsons Companies, Inc. (NYSE: ACI) have partnered to bring nearly 1,800 Albertsons Cos. stores to Grubhub's Marketplace for delivery including Albertsons, Safeway, Vons, Jewel-Osco, Shaw's, ACME and Tom Thumb. Availability is based on delivery locations through the Grocery section on the Grubhub app and website.

"We're pleased to grow our grocery offering with Albertsons Cos., one of the leading grocery retailers in the U.S., and give customers the opportunity to conveniently place their grocery orders within Grubhub," said Craig Whitmer, vice president of new verticals at Grubhub. "Through this exciting partnership, we're giving consumers more choices while maximizing value so that they find exactly what they need on Grubhub delivered right to their door."

"At Albertsons Cos., we are committed to providing customers with convenience, choice and variety," said Amber Kappa, vice president of business development and digital innovation at Albertsons Cos. "With our latest collaboration with Grubhub, shoppers can receive fresh produce, household essentials and regional favorites directly from our stores to their homes with a simple tap on Grubhub."

Albertsons Cos. banner stores will also be available on Grubhub+, Grubhub's loyalty program that provides customers access to unlimited $0 delivery on eligible orders. Albertsons Cos. is Grubhub's first national grocery partner following its partnership with Mercato, a marketplace for independent grocers. Grubhub continues to grow its product offerings to include grocery and convenience partners as well as expand merchant menu capabilities to support thousands more images and items.

About Grubhub
Grubhub is part of Just Eat Takeaway.com (LSE: JET, AMS: TKWY), and is a leading U.S. food ordering and delivery marketplace. Dedicated to connecting diners with the food they love from their favorite local restaurants, Grubhub elevates food ordering through innovative restaurant technology, easy-to-use platforms, and an improved delivery experience. Grubhub features 375,000 merchants in over 4,000 U.S. cities.

About Albertsons Companies
Albertsons Companies is a leading food and drug retailer in the United States. As of February 24, 2024, the Company operated 2,269 retail stores with 1,725 pharmacies, 402 associated fuel centers, 22 dedicated distribution centers and 19 manufacturing facilities. The Company operates stores across 34 states and the District of Columbia under more than 20 well known banners including Albertsons, Safeway, Vons, Jewel-Osco, Shaw's, Acme, Tom Thumb, Randalls, United Supermarkets, Pavilions, Star Market, Haggen, Carrs, Kings Food Markets and Balducci's Food Lovers Market. The Company is committed to helping people across the country live better lives by making a meaningful difference, neighborhood by neighborhood. In 2023, along with the Albertsons Companies Foundation, the Company contributed more than $350 million in food and financial support, including more than $35 million through our Nourishing Neighbors Program to ensure those living in our communities and those impacted by disasters have enough to eat.

 

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SOURCE Grubhub

FAQ

What is Grubhub's new partnership with Albertsons Companies?

Grubhub has partnered with Albertsons Companies to deliver groceries from nearly 1,800 stores, including Albertsons, Safeway, Vons, Jewel-Osco, Shaw's, ACME, and Tom Thumb.

When was the Grubhub and Albertsons partnership announced?

The partnership was announced on June 25, 2024.

What benefits do Grubhub+ members get with the Albertsons partnership?

Grubhub+ members get unlimited $0 delivery on eligible orders from Albertsons stores.

How does the Grubhub and Albertsons partnership impact JTKWY?

The partnership expands Grubhub's grocery delivery capabilities and is likely to enhance its market presence, potentially impacting its stock symbol JTKWY positively.

Which Albertsons Companies stores are included in the Grubhub partnership?

The partnership includes Albertsons, Safeway, Vons, Jewel-Osco, Shaw's, ACME, and Tom Thumb stores.