DoorDash has ended a program in New York City that tested 15-minute “ultrafast” grocery delivery, reports Insider. The company operated the piloted out of Manhattan since 2021.
"DoorDash no longer targets 15-minute delivery from the DashMart Chelsea location. DoorDash ended the pilot earlier this year, and the site continues to provide access to over 2,000 items with delivery typically under 30 minutes," a DoorDash spokesperson said.
Because deliveries had to be done quickly, the company put its delivery workers on payroll instead of using independent contractors. The company confirmed that it is exploring different roles and functions for W-2, salaried workers.
DoorDash’s exit from the ultrafast grocery delivery space is emblematic of the sector’s collapse, according to the report. It featured businesses including Fridge No More, Buyk, Jokr, 1520, Gorillas, and Getir; by the end of last year, however, Gorillas was bought out by Getir and the others shuttered U.S. operations.
According to CB Insights, funding from investors also dropped by 72 percent for the sector. Full Story
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