Uber has announced its biggest grocery division expansion so far by partnering with US retailer Albertsons.
The ride-hailing company said on Monday that its grocery delivery service is set to be rolled out to 1,200 Albertsons stores later this year.
All Albertsons customers will be able to access the service by the Uber and Uber Eats apps with Uber Pass and Eats Pass members able to get free delivery for orders over $30.
Uber said the partnership was its first major grocery expansion in the US, doubling the company’s reach to over 400 cities and towns since its launch last July.
“Today nearly 3 million consumers order groceries and other essentials each month through Uber and we’re just getting started,” Uber head of grocery Raj Beri said in a statement.
Uber Grocery and its other subsidiaries such as Gopuff and Cornership are now worth $3 billion to the company.
Uber acquired Gopuff in May as part of plans to keep expanding its business operations in the US.
Gopuff delivers “essential” items such as alcohol, local favourites, beauty and pet products, snacks and over the counter medicines.
On-demand grocery delivery has been a major winner of the pandemic, with rivals such as JustEat, Instacart and a range of rapid delivery services such as Gorillas, Getir and Weezy capitalising on the growing demand.
“We’re really kind of pushing toward a world where if you want to get anything within an hour, or instantly, in your city, we want you to be able to do that with Uber,” Beri added.
Uber Eats saw a revenue increase of 224 per cent year-on-year last year, generating more income than its ride hailing division.
Edison Trends cofounder Hetal Pandya added: “Grocery deliveries could be considered a lot more cutthroat than restaurant food delivery.”