Technology/Services

Vroom and DoorDash Partner for Third-Party Delivery

Convenience-focused option gives retailers customer data and lowers costs
convenience-store delivery
Photograph: Shutterstock

CHICAGO — Lou Perrine’s Gas & Grocery, FavTrip, Stop and Go Mini Mart, The Growler Guys and H&S Power Market will be the first to offer delivery through Vroom Delivery’s new convenience-focused third-party fulfillment program, serviced by the DoorDash network. Several additional retailers on the Vroom Platform will roll out the program within the next month, the companies said.

While some stores will move entirely to third-party fulfillment, others will use a mix of third-party fulfillment provided by DoorDash, as well as by store employees. This hybrid model allows those stores to quickly scale their existing in-house delivery programs by using DoorDash’s driver network, while also servicing areas outside of DoorDash’s coverage area, as well as providing additional fulfillment support to first-party fulfillment sites at times of high customer demand. Delivery with DoorDash will be powered by DoorDash Drive, its white-label fulfillment service that powers direct delivery.

Because the orders are processed through Vroom and not a third-party marketplace, retailers can market their own proprietary e-commerce programs and retain access to their customers’ information and order data. And by partnering with Vroom to manage the ordering and payment processes, the cost to retailers of the third-party fulfillment is reduced compared to normal marketplace rates. This allows retailers to profitably sell broader categories of products online for delivery without large price markups, and products can be price competitive with e-commerce-only competitors such as GoPuff. Alcohol and tobacco delivery is available with this program in select states as well.

“We believe that this hybrid of both first- and third-party delivery will be a cost effective and flexible delivery model that other convenience retailers using the Vroom platform will quickly benefit from,” said John Nelson, CEO of Vroom Delivery.

FavTrip, which conducted its first Vroom order fulfilled by DoorDash last week, chose the hybrid model with a preference towards employee-based delivery. The company will be using third-party to extend hours and smooth out peak delivery times.

“Having a service like Vroom has been great added value for our customers, particularly during the pandemic; however, at times it has been challenging to staff drivers, particularly during certain times of the day. The Vroom partnership with DoorDash helps us meet these challenges, extend hours and continue to provide a great service to our community,” said Babir Sultan, CEO of FavTrip.

Lou Perrine’s, on the other hand, has been delivering using store employees for years yet is opting to transition all of its logistics to third-party delivery in the coming weeks. “The ability to have cost effective third-party fulfillment lowers my overhead and reduces my liability, especially in the wintertime here in Wisconsin, without sacrificing the quality of my proprietary e-commerce program. It also will increase the overall reliability of my delivery operation as I do not need to have staff on standby to deliver. We are really excited by this addition to the Vroom platform,” said Anthony Perrine, owner of Lou Perrine’s.

San Francisco-based DoorDash is a technology company that connects customers with local and national businesses in more than 4,000 cities in the United States, Canada, and Australia. Founded in 2013, DoorDash offers on-demand delivery from door to door.

Founded in 2016, Chicago-based Vroom Delivery is an e-commerce engine designed specifically for the convenience-store industry, providing stores with the tools necessary to manage an e-commerce operation.

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