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Published in Food/Agribusiness
A SpartanNash micro-fulfillment center for online grocery orders. A SpartanNash micro-fulfillment center for online grocery orders. COURTESY PHOTO

SpartanNash, DoorDash partner to expand on-demand grocery delivery

BY Tuesday, May 10, 2022 10:48am

BYRON CENTER — Grocery retailer and food distributor SpartanNash Co. has partnered with global tech company DoorDash Inc. to provide on-demand grocery delivery for a large swath of the nation.

The Byron Center-based SpartanNash will team with DoorDash to facilitate grocery delivery for more than 100 of its stores, primarily in the Midwest. This includes Family Fare and Martin’s Super Markets locations. At the same time, the 2,100 independently owned retail stores in SpartanNash’s network also will be able to use DoorDash’s infrastructure.

Under the terms of the partnership, SpartanNash also will serve as a distributor for both pantry and household items for DashMart, a chain of brick-and-mortar convenience stores established by DoorDash in 2020 that carries grocery and restaurant products.

SpartanNash will begin by distributing to only DashMart locations in New York City.

“Customer-centric innovation is a key priority to drive growth at SpartanNash, and joining forces with DoorDash will enable us to expand our customer base and capture more of the grocery retail market by rapidly scaling our digital offering with a leading partner,” SpartanNash President and CEO Tony Sarsam said in statement. 

“We know our customers’ grocery needs well and have the supply chain and retail footprint to provide strategic service based on their preferences,” Sarsam added. “This partnership with DoorDash complements our collective strengths and will drive growth across the food ecosystem — from food distribution to eCommerce — to deliver the ingredients for a better life.” 

SpartanNash continues to lean into various forms of e-commerce, especially since demand for online services and products skyrocketed during the COVID-19 pandemic. 

The company since 2017 has offered its Fast Lane program that allows local shoppers to buy groceries online for pick-up or delivery. During the pandemic, SpartanNash saw a 32-percent rise in Fast Lane transactions, leading it to build an additional micro-fulfillment center in Caledonia.

SpartanNash also has partnered with Amazon since 2016 to supply the online retail giant with products for its grocery service. In 2020, the two entered into a commercial deal that gave Amazon the option of acquiring up to 5.4 million shares of common stock, making it the largest shareholder in SpartanNash.

“We are excited to partner with SpartanNash to bring innovative ecommerce solutions to their beloved grocery banners across the Midwest, independent grocers and retailers so that they can build their omni-channel presence and provide consumers with access to convenient, on-demand grocery delivery,” said DoorDash CEO and Co-founder Tony Xu.

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