Dive Brief:
- Dollar General is partnering with Uber Eats to offer the delivery service to its customers through 14,000 Dollar General and Popshelf stores, according to a company news release.
- The partnership kicked off Friday and is expanding throughout the month. Customers can use the Uber Eats app to order food, beverages and other essentials like personal care products, over-the-counter medications, paper products, cleaning supplies, lawn and garden, back-to-school supplies and more, per the company.
- Through Sept. 30, Uber Eats is offering a one-time promotional discount of 40% off on Dollar General and Popshelf orders of $20 or more with a maximum discount of $10. Uber One members get free delivery on eligible orders and other savings.
Dive Insight:
Dollar General’s partnership with Uber Eats builds out the retailer’s delivery network.
The retailer earlier this year partnered with DoorDash for similar services through 16,000 of its store locations. Dollar General also started a pilot program to offer same-day home delivery in 400 of its stores with a goal of expanding to 10,000 stores by the end of this year.
“Our customers will enjoy even greater convenience through our Uber Eats partnership, accessing everything from food to essential household items, saving them valuable time and money,” Tony Rogers, Dollar General’s chief marketing officer, said in a statement. “Providing communities with affordable, fresh, and accessible food options delivered right to their front door is aligned with our mission of Serving Others.”
While thought by the retailer to be an efficient way to maximize preferences and expand a customer base, the delivery service initiatives may also be reflective of its competition.
“Amazon is expanding its fast delivery services into more rural areas, which is where Dollar General has a heavy presence,” Neil Saunders, managing director of GlobalData, said in an email. “Rather than be undermined by this, Dollar General wants to push its own delivery options — which it is doing by partnering with third parties. The service will never be as comprehensive or as well-executed as Amazon, but it’s better than doing nothing.”
Dollar General has been rolling out a number of operational changes, including cutting 1,000 SKUs last year with plans to eliminate even more this year, according to the retailer’s CEO Todd Vasos. The company has also been working to build out its footprint, opening its 20,000th store last year.
In its most recent quarter, the retailer reported net sales grew 5.3% year over year to $10.4 billion, while net income rose nearly 8% to $392 million.
