Sign reading We Deliver With Doordash, referencing the Doordash food delivery service, San Ramon, California, September 12, 2020.
Smith Collection/Gado | Archive Photos | Getty Images
DoorDash announced Friday it is launching a partnership with Sam’s Club to provide same-day prescription delivery service to patients across the U.S.
The deal involves 500 Sam’s Club locations in 41 states, and is implemented through Drive, the platform DoorDash offers to businesses looking to integrate delivery into their own platforms. In this case, customers who want to access the service will have to request it through the wholesale club directly, and both members and non-members of Sam’s Club can take advantage of same-day delivery.
DoorDash Chief Operating Officer Christopher Payne said expanding beyond food delivery has always been part of the company’s mission, but the pandemic highlighted the urgency of same-day delivery.
“It definitely was on the road map before, the vision encompassed this. In many ways, I think DoorDash was made for this scenario,” said Payne. “Pharma delivery is not convenient today. This now allows us to use the logistics system that we built, with DoorDash Drive, and bring it to your door.”
The arrangement marks DoorDash’s first major pharmaceutical partnership of its kind.
The move is the latest in a rapidly changing post-pandemic landscape for same-day delivery platforms like DoorDash, Instacart, and Postmates, which is in the process of being acquired by Uber. Since Covid-19-related lockdowns shut down many small businesses this spring, delivery companies are looking to fill the need of homebound customers looking for instant delivery of food, essentials and retail goods, while also allowing local businesses a contactless channel to sell their inventory.
“You see that unfolding at an accelerated pace, partly brought on by the pandemic. You can imagine not a lot of customers are wanting to go out and now they don’t have to. They can stay home and they can get that pharmaceutical delivery brought home to them in real-time,” said Payne.
Just this week, Postmates announced it is testing out a new retail channel in Los Angeles to offer same-day delivery for clothing, home, beauty and wellness items. This month, Instacart launched a partnership with Sephora, and DoorDash has a new deal with Macy’s to provide same-day delivery from 500 Macy’s and Bloomingdale’s stores across the country through the retailer’s online platform. The three delivery companies have all recently linked up with convenience and drugstores like 7-11, Walgreens, and CVS to deliver household essentials. The expansion of partners beyond restaurants and grocery stores is also a pointed play for Amazon Prime shoppers.
Recent data from Edison Trends shows DoorDash widened its lead in food delivery transactions in September, taking 48% of the market, compared with Uber Eats and Postmates’ combined share of 35%, and marking a 14% rise year-over-year.
However, with the delivery space shifting quickly and companies adding new partners, Payne said, DoorDash is always looking ahead.
“This is not about focusing on what competitor X or competitor Y is doing right now,” said Payne. “There’s so much opportunity in front of us and our strategy has been since day one and I think this what has propelled us to market leadership has been to follow the conversation with our merchant partners.”