DoorDash wins large supermarket customer for deliveries

Food delivery company By Dash (NYSE: DASH) apparently made a deal with Albertsons Companies (NYSE: ACI), a large grocery and supermarket company whose chains include more than 2,700 stores, making it the second-largest Kroger (NYSE: KR) in the USA. Albertsons operates around 18 different chains, the main names of which are Safeway, Vons, Shaw’s, Albertsons, Acme Markets and Jewel-Osco.

According to reports from SFGATE, Albertsons will begin using DoorDash delivery services for the Safeway and Vons locations on February 27. The supermarket company will also start laying off delivery drivers for these chains. Albertsons representative Wendy Gutshall said the move “will allow us to be more competitive in the growing home delivery market” and that the new strategy was the result of “much thought”.

Image source: Getty Images.

While the pact between DoorDash and Albertsons was broken following activist reporting in California by Knock.LA, the Los Angeles Times reports that DoorDash will begin shipping for chains all over America, not just the Golden State.

Several sources, including the California Labor Federation, nevertheless claim that the alliance is a direct result of the passage of California’s Proposition 22. paying jobs of “drivers, what the union calls” dedicated frontline workers “during the pandemic.

Proposition 22 allows delivery companies like DoorDash to classify their workers as independent contractors, so they don’t have to offer standard benefits under employment law. DoorDash has contributed $ 52.1 million to support the passage of Prop 22.

DoorDash caused a stir with a high-priced IPO, but has since drawn predictions from analysts that it will be unable to “live up to” its initial valuation of $ 50 billion.