Retailers have increasingly teamed up with delivery companies for last-mile, same-day delivery. Consumers seek out convenience, but setting up a fulfillment network capable of widespread same-day delivery is a large undertaking. Partnering with a company like DoorDash or Instacart can give a retailer access to a ready-made fulfillment network that consumers might already be familiar with.

Why are retailers using partners for last-mile delivery?

Facilitating same-day delivery is quite costly for retailers.

“Startup costs are stratospheric, as are the ongoing costs to run the service, thereby gobbling up profitability,” research firm Forrester said in a December 2023 report.

UPS-owned Roadie interviewed 150 industry leaders at retailers that offer same-day delivery. Most of them said implementation costs were in the six figures, and operational costs grew as the delivery programs grew. 

However, they also noted clear benefits. 80% said it led to higher customer satisfaction, and 70% said offering the service increased sales. Others mentioned customer retention and acquisition, conversion, and lower inventory costs as other perks.

29% of respondents said they used a crowd-sourced delivery platform, like Instacart or DoorDash. Those leaders told Roadie that partnering with one of those vendors has two benefits.

1. It’s easier to get the program running without a minimum volume or capital.
2. It’s flexible and scalable based on demand.

These are nine of the most significant same-day, last-mile delivery partnerships since the start of 2024.

1. Hy-Vee and Instacart

Hy-Vee said it would work with Instacart on same-day delivery, the retailer announced Feb. 8. The grocery chain will use Instacart’s fulfillment-as-a-service (FaaS) capability across its ecommerce channels, including Hy-Vee.com, WholeLotta.com, HyveeDeals.com, ShopPetShip.com and the Hy-Vee app. The relationship with Instacart will allow Hy-Vee to expand its delivery capacity to meet growing demand, it said.

Hy-Vee was able to integrate Instacart’s FaaS into its existing ecommerce operation using an API, the retailer said. Ecommerce operations platform company UpShop facilitated the integration between Hy-Vee and Instacart, the fulfillment operator said.

The grocer ranks No. 182 in the Top 1000. The Top 1000 database is Digital Commerce 360’s ranking of the largest North American online retailers by web sales.

2. Pet Supplies Plus and DoorDash

Pet Supplies Plus teamed up with DoorDash in February to offer same-day delivery for pet supplies from its more than 700 locations. The store’s offerings are part of DashPass, DoorDash’s membership program with $0 delivery fees on orders from certain retailers and restaurants.

“Since launching the Pets vertical in 2020, DoorDash has more than 400,000 pet products available for on-demand delivery,” said Fuad Hannon, vice president of new verticals at DoorDash. 

Pet Supplies Plus is No. 213 in the Top 1000.

3. AWG and Instacart

Instacart expanded its relationship with Associated Wholesale Grocers, Inc. (AWG) to offer same-day delivery and smart shopping carts at more locations in March.

AWG is a cooperative food wholesaler with 1,100 member companies and more than 3,500 locations. The new agreement between the businesses brought Instacart’s ecommerce technology to all AWG locations across 32 states, from the 800 that previously had access.

AWG grocers are now included on Instacart’s app, where consumers can add products to their carts, check out, and receive same-day delivery from an Instacart driver. Orders can also be scheduled up to two weeks in advance.

4. Sally Beauty and DoorDash

DoorDash expanded its relationship with Sephora and added new partnerships with MAC Cosmetics and Sally Beauty in March. Through relationships with these retailers, DoorDash said it will offer customers on-demand delivery of beauty, hair, makeup and nail products in under an hour.

“We see consumers ordering from retail categories more than ever before and trying out new categories earlier in their DoorDash journey,” said Shanna Prevé, vice president of partnerships at DoorDash, in a statement.

“As consumers have higher demand and expectations for convenience and selection, we’re thrilled to connect merchant partners, like Sally Beauty and M·A·C, with people in new ways and unlock potential additional revenue,” she added. “For consumers, we remain hyper-focused on providing unparalleled speed and service to meet their everyday needs, whether it’s the last-minute beauty essentials or the viral must-have new products.”

Sephora is part of LVMH, which ranks No. 3 in Digital Commerce 360’s Europe Database. Sally Beauty ranks No. 339 in the Top 1000. MAC is part of The Estee Lauder Cos. Inc., which ranks No. 41 in the Top 1000. 

5. Lowe’s and DoorDash and Shipt

Lowe’s and DoorDash unveiled a partnership for same-day delivery from the retailer’s 1,700 U.S. stores in April. It marked DoorDash’s first time offering delivery for the home improvement retail category.

“Our collaboration with DoorDash unlocks an opportunity for us to reach new DIY customers who are shopping directly on the DoorDash app, helping them get everything they need for spring,” said Neelima Sharma, senior vice president, digital commerce and technology.

The retailer also partnered with delivery company Shipt this spring to offer delivery from 1,200 locations. 

Lowe’s is No. 11 in the Top 1000.

6. Vitamin Shoppe and Uber Eats

The Vitamin Shoppe and Uber Technologies announced a partnership in April to make the supplement retailer the first to be available via Uber Eats nationwide.

About 700 locations of The Vitamin Shoppe and Super Supplements are available to Uber Eats consumers in the United States.

“The Vitamin Shoppe is a growth-focused business with a digital-first mindset that is continuously transforming the way we serve our customers, by reaching them where and when they want to shop,” said Muriel Gonzalez, president of The Vitamin Shoppe, in a statement. “On-demand, same-day delivery from our stores via Uber Eats provides a fast and convenient way for our customers to access their favorite health and wellness products.”

The Vitamin Shoppe Industries Inc. ranks No. 286 in the Top 1000 Database. 

7. Wakefern Food Corp. and DoorDash

Wakefern added same-day delivery to its 365 supermarket locations through DoorDash. The stores operate under the ShopRite, Price Rite Marketplace, The Fresh Grocer, Fairway Market, Gourmet Garage, and Dearborn Market banners.

“In addition to our own in-house full-service grocery fulfillment offering, DoorDash joins our digital portfolio providing consumers yet another way to shop Wakefern banners,” said Wakefern president Mike Stigers. “By joining forces with DoorDash, which offers on-demand, fast delivery of grocery staples and household essentials, we can make grocery shopping even more convenient for our shoppers.”

Wakefern ranks No. 411 in the Top 1000.

8. Kohl’s and Instacart

Kohl’s Corp. joined Instacart in May, the retailer announced. As a result, Kohl’s merchandise will be available in as little as an hour through same-day delivery on Instacart. The service is now accessible at all of Kohl’s 1,172 U.S. stores, it said.

Instacart purchases at Kohl’s will be priced the same as in stores. In addition, customers will still be able to accumulate Kohl’s Rewards, it said.

“With Kohl’s as one of the first department stores on our platform, we’re proud to continue expanding our selection beyond grocery, making everyday shopping for our customers easier for their busy lives,” said Blake Wallace, senior director of retail partnerships at Instacart. “We’re committed to offering customers a broad selection of items and ways to get exactly what they need from the retailers they know and love.” 

Kohl’s is No. 23 in the Top 1000. 

9. Uber Eats and Instacart

The two delivery companies teamed up to allow consumers to order from restaurants through the Instacart app from restaurants on Uber Eats.

“Through this partnership, Instacart customers now have access to both the best online grocery selection in the U.S. and restaurant delivery, making it even easier for them to conveniently tackle all their food needs from a single app,” said Fidji Simo, CEO and chair of Instacart. 

Instacart drivers will continue to fulfill orders from grocery stores and retailers, while Uber Eats drivers will fulfill restaurant orders made through Instacart.

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