Food delivery app Grubhub is expanding its branded convenience offering nationwide, the company announced on Tuesday. The convenience offering, which is called Grubhub Goods, is now available across the country and offers on-demand convenience delivery from more than 3,000 Grubhub Goods locations.
The nationwide expansion is launching in collaboration with 7-Eleven. The expansion follows a pilot in New York of more than a dozen Grubhub Goods locations offered with 7-Eleven. The Grubhub Goods locations with 7-Eleven feature popular convenience items, including energy drinks, ice cream, personal care products and more.
“Diners have come to expect more choices when they land on Grubhub, including convenience options, which we see as a natural extension of our marketplace and a way to bring more value to the entire Grubhub ecosystem,” said Kyle Goings, the director of growth and new verticals at Grubhub, in a statement. “We’ve been working with 7-Eleven for years to offer their locations on the Grubhub marketplace, and it was a no-brainer to team up with the convenience leader again and bring their operational expertise and scale to Grubhub Goods. Together we are making it even easier for diners to order convenience items and satisfy any quick cravings right from the Grubhub app.”
The company says it sees a huge opportunity in convenience as an adjacent market to provide customers with more occasions to order from the app.
Grubhub isn’t the only food delivery company to launch a branded convenience offering. DoorDash launched DashMart, its digital convenience store channel, in April 2020. DashMarts sell household items, as well as the types of things you’d find at a convenience store. However, DoorDash’s offering is different than Grubhub’s because DashMarts are essentially micro-fulfillment centers that carry around 2,000 items, where DashMart warehouse associates pick and pack the orders, and then delivery workers, known as Dashers, come to collect the order and deliver to the customer.
Today’s announcement comes eight months after Amsterdam-based Just Eat Takeaway completed its acquisition of Grubhub in an all-share deal for an enterprise value of $7.3 billion. The acquisition was not just a big piece of M&A in the food delivery space, but also represented a major competitive swipe, as Uber Eats had also been trying to acquire the company.