Dive Brief:

• DoorDash on Thursday launched a feature called DoubleDash, which allows users to add items from nearby stores to their original order without additional delivery fees or order minimums. DoubleDash is currently available at 7-Eleven, Walgreens, Wawa, The Ice Cream Shop, QuickCheck and DashMart, as well as local restaurants in select markets, according to a company blog post.
• Customers who place their restaurant order on DoorDash can look for the DoubleDash option after checkout to add items from stores indicated on a map. From those store pages, they can add drinks, snacks or other items. The orders arrive at the same time.
• This feature comes as demand for grocery and convenience store delivery continues to grow. DoorDash customers increased their c-store spending by 162% from Q3 2020 to Q4 2020, according to Edison Trends.

Dive Insight:

Food delivery apps continue to diversify as they look to lure new customers with convenience and grab a larger slice of the online grocery market. Since last year, DoorDash has offered on-demand grocery delivery, while rival Uber introduced grocery delivery through both its main app and Uber Eats. Grubhub also offers the service.

In addition, Uber recently added a Pickup and Go feature that allows Rides passengers to pick up meals and groceries en route to their destination.The DoubleDash feature is similar, letting customers add a quick item, like a Slurpee from a nearby 7-Eleven, to their restaurant meal, versus a full grocery order.

Retailers may be enticed to partner with DoorDash for its DoubleDash feature because of brand awareness. According to Second Measure, DoorDash maintains a commanding market share lead in the foodservice delivery space, at 56%. Some stores may also like the added exposure as they ramp up their own foodservice offerings to compete with quick-service concepts. For example, someone who wants to add a Kit Kat King Size candy bar may also find something to add to their group order from Wawa's dinner menu.

Combining food and grocery delivery helps third-party aggregators meet evolving consumer needs during the pandemic while trying to stay top-of-mind share as consumers flock back to restaurants. Ten percent of DoorDash users on iPhones also used Instacart for grocery deliveries, according to App Annie analysis, showing the potential if the services are paired. Delivery companies are also diversifying their portfolios as the space continues to intensify and profitability remains elusive.

One potential challenge with DoubleDash, however, is that the added service could further slow delivery times and labor at the company. DoorDash has recently experienced an undersupply of couriers, which has resulted in subpar experiences for customers and merchants alike.