Coffee giant Starbucks announced it has teamed up with DoorDash to test its delivery in Atlanta, Georgia. The service will be expanded nationally in 2023.
Starbucks Teams Up with DoorDash
According to TechCrunch, Starbucks and DoorDash will offer their services in stores in Houston and Sacramento, Texas, on Wednesday, Sept. 14.
Customers who live within the delivery radius of the selected stores in these cities will be able to order Starbucks items through the DoorDash app.
Starbucks’ main delivery partner has been Uber Eats. The coffee giant first partnered with Uber Eats in 2018 and began its services in Miami. The companies slowly expanded their delivery service nationally over the past few years.
Now, Starbucks is looking to make its menu items more accessible by teaming up with another delivery app.
As for DoorDash, the new partnership will give its users the chance to order Starbucks coffee, an option that it did not have in the past.
It will also give the app the chance to compete with Uber Eats, which will no longer be the main company to offer the famous coffee.
DoorDash is Shaking Up its Partnerships
In August, Business Insider reported that DoorDash ended its partnership with Walmart after four years of delivering the retail giant’s products to customers.
The delivery app ended its partnership with the retail company because it was no longer mutually beneficial and because the delivery company wanted to focus on its long-term customer relationships.
A spokesperson for DoorDash said that it will be focusing on its Marketplace and Platform offerings.
DoorDash sent Walmart a 30-day notice and a letter in August to end their partnership. The termination took effect in September.
The partnership between DoorDash and Walmart began in April 2018 as a pilot to deliver Walmart groceries to customers in the Atlanta area. Since then, the partnership has expanded to other states in the US.
Even though Walmart has partnered with third-party delivery services like DoorDash, the retail giant has also been focused on creating its own delivery services.
Walmart acquired Delivery Drivers, the company behind the company’s Spark platform that sees gig workers deliver orders to customers.
The delivery app said that the Spark platform has grown to become the company’s largest delivery service provider, and it accounts for 75% of Walmart deliveries.
Around the same time, DoorDash also confirmed that its business-to-business service that provides drivers to merchants through their app or website called DoorDash Drive is in the early stages of testing a service that will allow its drivers to pick up and drop off Marketplace items to its customers.
DoorDash and Meta are offering the test in several cities in the US, giving a lot of drivers the opportunity to earn money.
According to PYMNTS, items that are eligible for delivery are Marketplace items that can fit in the trunk of a car, and the location must be 15 miles away.
DoorDash drivers are expected to deliver the Marketplace items within 48 hours or less.
The service will benefit sellers who are not comfortable inviting strangers into their homes to get an item. It is also a great option for sellers or buyers who can’t travel.
Written by Sophie Webster
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