NEW YORK CITY, New York: DoorDash has begun offering 10 to 15-minute deliveries in New York City through its newly-launched Dashmart, which provides very quick deliveries of groceries, household goods and restaurant food.
In the DoorDash app and website, customers within the New York City delivery zone will see the new option under a tab called "convenience."
With this new service, DoorDash is following a model adopted by several startups that aim to dominate the delivery market in urban areas, such as GoPuff, Gorillas and Fridge No More.
"In New York, the density is such that you can have a really tight radius around the store and deliver in 10 to 15 minutes. You are not going to have that type of density if you go into the suburbs, but you could deliver rapidly. Instead of 10 to 15, it might be 20 to 30," said DoorDash president Christopher Payne, as quoted by CNN.
Online grocery shopping became popular during the COVID-19 pandemic, with more customers having food items delivered. Through the new option, the company is betting on what it considers a long-term trend.
"There is a massive long arc of consumer expectations rising. Bringing goods and services to consumers in minutes, not hours or days, is going to be a trend that will last for many, many years to come," added Payne.
DoorDash is hiring some 60 people to support the new service, he said.
Speedy delivery in New York City is a competitive market, and DoorDash is hoping to attract customers that already use it for other services.
Those using Dashpass, a monthly subscription that offers members free deliveries and other perks, will also get free deliveries for the new 15 minute service.
In addition to its competitors, DoorDash may also have to deal with unhappy local businesses, such as New York City bodegas, whose owners criticized the new delivery startups and said they cannot compete with services backed by venture capital.
In response, Payne said, "As we work out the the capabilities required to do 10 to 15 minute delivery at scale, we will open that up as a platform and offer that to bodegas, corner shops and other stores where it fits their needs."