DoorDash quietly ends an experiment to deliver grocery orders within 15 minutes in NYC
As these players launched operations in the US, investors poured millions of dollars into the startups. According to CB Insights, investors spent over $12 billion on companies that promised to deliver groceries in under 30 minutes.
DoorDash entered the crowded ultrafast space in early December 2021. The New York DashMart carried about 2,000 items, such as fresh and frozen groceries and snacks. Because deliveries had to be done quickly, DoorDash put couriers on the payroll to fulfill the deliveries instead of relying on independent contractors. Now that the ultrafast experiment is over, DoorDash said deliveries are now made by gig workers. When DoorDash launched ultrafast delivery in New York City, DoorDash executive Fuad Hannon that the company was"excited about this space and how DoorDash can position itself in the market.
"As we think about customer expectations, they're really moving in one direction — and that's just for increased convenience," Hannon said at the time. Robert Mollins, a Gordon Haskett analyst, wrote in aCustomers also weren't ordering enough groceries amid rising inflation. Neighborhoods in New York City also balked at the dark store operations, accusing them of ruining retail enclaves and taking away business from local bodegas
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