Uber looks to expand grocery delivery as Asda signs up

Asda has announced a new partnership with Uber Eats as the US technology company is expanding its delivery offerings.

The trial with Asda, which will be launching this week from stores in Leeds and Birmingham, offers over 300 Asda own-brand products and branded everyday items to order via the Uber Eats app, with no minimum basket size needed to qualify for delivery.

“This will give Asda customers more choice in how they shop with us and offer yet another way to quickly and conveniently get their favourite branded and own-brand products delivered to the doorstep,” commented Simon Gregg, vice president of online grocery at Asda.

Asda looks to extend the partnership to more stores depending on the success of the trial.

The supermarket chain is the first major multiple joining the online platform.

“Uber Eats is looking forward to making sure customers can quickly and conveniently order groceries and treats, and I know this partnership will offer even more choices for customers using the Uber Eats app,” said Toussaint Wattinne, Uber Eats general manager.

The platform, which is available in more than 120 towns and cities across the UK, has a strong presence in the convenience channel with Bestway Retail and Costcutter Supermarkets Group launching nationwide partnerships in late last year.

Meanwhile, the US parent Uber Technologies on Tuesday further expanded its global delivery offerings, launching an app-based grocery service in several Latin American and Canadian cities, with the United States to follow later this month.

The company's foray into the delivery space is in partnership with Cornerstore, a Chilean online grocery provider that Uber holds a majority stake in since October.

Customers in Canada's Montreal and Toronto, eleven Brazilian cities, including in Rio de Janeiro and Sao Paulo, four Chilean cities, Colombia's Bogota and Peru's Lima will be able to order groceries from local stores and chains through the Uber Eats app.

In Canada, groceries can be ordered from large chains Walmart, which owns Asda, and Metro.

A launch in US cities is expected later in July, beginning with regional merchants in Miami and Dallas, an Uber spokeswoman said.

Uber's grocery delivery push comes at a time when its core ride-hailing business is under pressure around the globe with coronavirus lockdown orders keeping many passengers at home. At the same time, Uber's restaurant delivery business Eats has seen growing demand during the pandemic, with second-quarter food delivery orders up more than 100 per cent.

(With Reuters Inputs)