Uber Expands Grocery Delivery to 400+ US Cities

Uber Significantly Expands US Grocery Delivery Service

Uber has recently revealed a substantial broadening of its grocery delivery capabilities within the United States. This week marks the first significant expansion, with the service area being increased to over 400 cities and towns – more than doubling its previous reach.

Currently, the service is available in several key metropolitan areas via both the Uber and Uber Eats applications. These include major cities like San Francisco, New York City, and Washington DC.

Partnerships Driving Growth

A key factor in this accelerated expansion is a strategic collaboration with Albertsons Companies, which operates a network of 1,200 grocery stores nationwide.

Albertsons’ portfolio encompasses well-known brands such as Safeway, Jewel-Osco, Acme, Tom Thumb, and Randalls.

Beyond Albertsons, Uber also facilitates grocery delivery from regional supermarket chains, including Southeastern Grocers and Red Apple Group, based in New York.

Benefits for Subscribers

Subscribers to Uber Pass and Eats Pass are eligible for waived delivery fees on grocery orders totaling more than $30.

Adapting to Changing Market Conditions

The importance of grocery delivery to Uber’s overall business model was notably heightened during the peak of the COVID-19 pandemic. A significant decline in ride-sharing demand prompted a shift in focus.

The company is also navigating a current shortage of drivers, which has resulted in increased pricing for ride services.

Strategic Acquisitions

To bolster its delivery sector growth, Uber has acquired several delivery-focused startups in recent years. These include Cornershop, Postmates, and Drizly.

This article was originally published on Engadget.