Digital sales were ~$11 billion in October 2023. Third-party platform sales dipped below 16% for the second time this year. Average digital grocery baskets dipped in October 2023.
Overall sales were flat, digital was up marginally. Average basket sizes were down to $166 post the July bump. Fewer grocers believe they need third-party platforms to succeed in digital.
Instacart, DoorDash, and Uber are innovating their digital strategies, evidenced by the launch of new delivery technologies and APIs, while addressing the cost challenges faced by U.S. grocery retailers in enhancing digital profitability. sales on these platforms rose by 15.2% from February to March 2024.
Third-party platforms that experienced a meteoric rise in sales during the COVID-19 pandemic have seen their growth stabilize in 2024. This shift is particularly noticeable as grocers increasingly develop their own in-house capabilities.
Grocery Doppio reports that digital sales created the $30 billion mark ($30.2 billion) in Q3, representing a 14.4% increase over Q2’s performance. On the surface, this rise in overall digital grocery value suggests that consumers are relying on digital for a larger percentage of their grocery shopping needs.
Every good thing comes with its own set of hurdles, and third-party delivery solutions are no exception. Here, we bring you 5 challenges that grocers face as they embrace third-party delivery platforms.
As grocers increasingly shift their focus toward improving digital execution, we shed light on the six benefits of third-party delivery that are enabling grocers to gain a competitive edge in the market.