DoorDash won’t supply Walmart’s groceries beginning next month

Ending a four-year collaboration, DoorDash is calling off its association with Walmart. It had the service delivering groceries and other goods from the retail chain to clients for over four years, according to a notification from Insider.

A source close to the situation told Insider that DoorDash notified Walmart about its decision earlier this month, citing that the partnership “was no longer mutually beneficial” and that it wants to “focus on its long-term customer relationships.”

DoorDash reportedly gave Walmart a 30-day notice, which means the partnership will officially end in September. The two organizations first teamed up in 2018 when Walmart started testing having groceries ordered through its site delivered by DoorDash. It went live in Atlanta, Georgia, to start, but has since expanded to several other states.

“We have agreed to part ways with DoorDash,” Walmart spokesperson Leigh Stidham said in an email to The Verge. “We’d like to thank DoorDash for their partnership and support of our customers over the past several years.” DoorDash didn’t immediately respond to The Verge’s request for comment.

It’s unclear whether DoorDash will offer deliveries from Walmart via its app, though. DoorDash currently doesn’t let you order from Walmart, presumably to avoid any conflicts with the service it provides through Walmart’s website. DoorDash rival Instacart, on the other hand, offers same-day deliveries from Walmart in some areas.

DoorDash and Walmart’s split isn’t all that surprising. Walmart has been busy building out its delivery service platform, Spark, which hands off grocery deliveries to its database of gig workers, similar to the way Lyft and Uber operate.

Walmart told Insider that Spark accounts for 75 percent of its deliveries and services and 84 percent of households in the US. Last year, Walmart announced that it’s also working on a white label delivery service, GoLocal, to handle last-mile logistics and deliveries for other businesses.

And while DoorDash is axing its partnership with Walmart, it has forged a new one with Facebook. The service will now pick up and deliver items purchased through Facebook Marketplace, so long as they’re small enough to fit inside the trunk of a car. DoorDash also works with stores like Bed Bath & Beyond and Macy’s to offer customers same-day deliveries.

DoorDash, Inc., an American company, operates online food ordering and delivery platforms. The company is established in San Francisco, California. It ran public in December 2020 on NYSE and trades under DASH.

It is the biggest food delivery company in the United States, with a 56% market share. It also holds a 60% market share in the convenience delivery type. As of December 31, 2020, the forum was used by 450,000 retailers, 20,000,000 consumers, and one million deliverers.

DoorDash has been condemned for withholding tips, lowering tip transparency, antitrust cost manipulation, listing restaurants without permission, and allegedly misclassifying staffers.

Stanford University students Andy Fang, Tony Xu, Stanley Tang, and Evan Moore, in the fall of 2012, were getting feedback on a mobile app for small business owners when a macaroon store proprietor told them of her challenges in fulfilling the demand for deliveries.

In January 2013, they established PaloAltoDelivery.com in Palo Alto, California. In the summer of 2013, it accepted $120,000 seed money from Y Combinator in exchange for a 7% stake. It was incorporated as DoorDash in June 2013.

In December 2018, DoorDash surpassed Uber Eats to hold the second position in total U.S. food delivery sales, behind GrubHub. By March 2019, it had reached GrubHub in total sales, at 27.6% of the on-demand delivery market. By early 2019, DoorDash was the most significant food delivery provider in the U.S., measured by consumer spending. It maintained that market position in 2019.

In October 2019, DoorDash extended its first ghost kitchen, DoorDash Kitchen, in Redwood City, California, with four restaurants operating at the location.

In January 2020, it was documented that DoorDash had lied about skimming tips from its drivers, driving them to earn an average of $1.45 an hour after expenses. After the company had allegedly revamped its tipping system, DoorDash was still manipulating per-delivery payouts at the cost of drivers.

By June 2020, DoorDash had extended more than $2.5 billion over many financing rounds from investors, including Charles River Ventures, SV Angel, Y Combinator, Khosla Ventures, Sequoia Capital, GIC, SoftBank Group, and Kleiner Perkins.

During the COVID-19 pandemic, DoorDash reported it had “stockpiled thousands of gloves and bottles of hand sanitizer” and delivered them to delivery drivers for free. The company also said it had modified the default drop-off option to contactless delivery. That month, DoorDash evolved into the fastest-growing food delivery service.

In October 2020, the company established its “Reopen for Delivery” program to retain brick-and-mortar restaurants closed due to the COVID-19 pandemic companion with local ghost kitchen operators to deliver food – and pick-up-only service.

In November 2020, DoorDash announced opening its first physical restaurant location, partnering with Bay Area restaurant Burma Bites to offer delivery and pickup orders.

On December 9, 2020, the company evolved into a public company via an initial public offering, raising $3.37 billion. By August 2022, the stock was exchanging at $82 per share.

In May 2021, DoorDash was criticized for unauthorized listings of restaurants that had not been permitted to appear on the app. Lona’s Lil sued the company Eats in St. Louis, with the lawsuit asserting that DoorDash had listed them without permission, preventing restaurant orders from going through and redirecting customers to other restaurants instead. Lona’s was “too far away” when it had not paid DoorDash a fee for listing. This aspect of DoorDash’s company practice is illegal in California.

DoorDash started expanding into international markets in 2015, pitching in Toronto, Canada. The company started operating in needs outside North America in 2019, officially establishing in Melbourne, Australia, in September and later expanding into the nation. In 2021, the company expanded its service area to Sendai, Japan, in June and Stuttgart, Germany, in November. Finally, in June 2022, the company grew into the Wellington Region of New Zealand.

The company expanded its service offerings in 2020, counting grocery delivery initially in California and the Midwest in August 2020. In addition, DoorDash expanded its service offerings in 2021 to include DoubleDash, allowing orders from multiple merchants and alcohol delivery in 20 U.S. states, the District of Columbia, Canada, and Australia.