Farmstead Partners With DoorDash
Online grocer Farmstead has partnered with DoorDash, the companies announced Tuesday in a press release. Farmstead’s partnership with DoorDash comes as the e-grocer pushes forward with plans to expand to at least 15 new cities by 2021. Farmstead uses AI (Artificial intelligence) technology and a dark storage model. That model consists of warehouses that work within a 50-mile radius. By combining them, Farmstead provides cheaper and faster service. So, the brand reduces costs and increases the number of delivery orders per day. The company also offers prices that are cheaper than those found in supermarkets. Farmstead is quickly expanding, with goals to reach customers all around the country.
“Together, Farmstead and DoorDash can remove the two biggest barriers to grocery e-commerce success: order picking and packing efficiency, and low-cost, high-quality delivery with a production capacity of thousands of orders per day,” Pradeep Elankumaran, co-founder and CEO of Farmstead said.
Farmstead To Expand Online Grocery Market.
The company has added Charlotte and Raleigh-Durham, North Carolina, as new markets. Last year it raised $7.9 million in new funding. Farmstead intends to expand its presence in the online grocery industry.
The company has two goals. First, it strives to grow its grocery delivery services in markets all over the country. According to a press release, Farmstead plans to launch its services in Nashville, Tennessee, Miami, and at least 13 other cities. The company intends to achieve that goal by the end of the year.
Second, they also plan to spread the use of its Grocery OS software amongst other food retailers. That way, the company will facilitate them to create their e-commerce operations. Customers can make orders with Farmstead via the DoorDash app and website. That service is available in the San Francisco Bay Area, as well as in Charlotte and Raleigh-Durham.
DoorDash’s Grocery Play
Since mid-2020, DoorDash has been making a move into the grocery space with the introduction of DashPass. This service is a subscription model. DashPass is available for a monthly cost of $9.99, according to DoorDash. For orders of at least $12, members enjoy unlimited free delivery and reduced service fees. Subscribers can also order groceries on a per-order basis through DoorDash for a $3.99 standard delivery fee (depending on the market they are in) with no minimum order amount.
Farmstead’s Grocery OS Allows Access To DoorDash User Database
DoorDash has already established partnerships with grocery stores such as Smart & Final Meijer and Fresh Thyme Market. Retailers that use Grocery OS can sell groceries via the DoorDash app and website. Farmstead became the first online retailer to sell new, high-quality groceries at lower prices than local stores, delivered for free.
