Uber Eats is expanding its retail partners to local and regional stores, including Busch’s Fresh Food Market, Hays, Lowe’s Market, Marc’s and Piggly Wiggly – allowing smaller grocers to compete with national players such as Walmart, Kroger and Amazon who have significant digital commerce footprint.
“Regional grocers shouldn’t have to build their digital commerce and delivery operation from the ground up in order to meet evolving customer expectations,” according to Uber.
The e-commerce add-on is a value for smaller retailers because setting up their own e-commerce infrastructure is a heavy lift, according to Uber.
“Uber gives them access to a marketplace and delivery network already operating at scale, while also offering advertising and growth solutions that can help retailers reach new customers, increase visibility and drive additional demand,” the company said.
Technology and logistics power the online grocery experience
Logistics entail catalogs, inventory, substitutions, picking and delivery, which “all need to work together,” to enhance convenience for consumers and retail partners regardless of the market they’re in, Uber says.
Uber also emphasized that marketplace partnerships are designed to complement rather than replace a grocer’s existing customer base.
“Rather than having to create every piece of the experience independently, retailers can tap into existing technology and consumer demand to meet the needs of their most loyal shoppers and even reach new ones,” the company said, adding that the delivery, owned e-commerce, loyalty programs and in-store shopping should work together to give customers more ways to shop with retailers they already trust.
Since Uber’s ride share started in 2009, its model has expanded to include Uber Eats, which caters to any retailer in different markets, the company said.
“Every retailer starts from a different place, but a successful start typically involves an accurate online catalog, clear visibility into available inventory, and a smooth process for picking and substitutions. Some retailers may share store maps or item-level guidance to help fulfillment teams find products more efficiently and improve delivery times, while others may focus on bringing more of their assortment online.”
Uber turns riders into grocery customers
Uber’s rideshare platform also serves as an advantage for new consumers.
“We see 31% of first-time delivery consumers come from the Uber (rides) app, which speaks to how our integrated ecosystem serves as a powerful customer acquisition tool. A customer might open Uber for a ride or a restaurant order and discover that a familiar local grocer is available, helping to fuel demand for our grocery partners,” according to the company.
Local and regional brands gain visibility
The company also sees opportunities for brands selling through regional grocers.
According to Uber, including more local and regional retailers onto Uber Eats gives consumers another way to discover local brands that may have less visibility nationally.
The company said retailers can use search, promotions and sponsored placements to spotlight products and offers as shoppers actively build baskets, helping drive product discovery and trial.
