Insights Flash: Uber Eats Shakes Up NYC Grocery Delivery with FreshDirect Partnership
Grocery delivery in New York City has become a highly competitive space, with services such as Instacart, Amazon Fresh, and FreshDirect all vying for a share of customers’ wallets. Consumer Edge Transaction data shows that despite being an early pioneer nearly 20 years ago, FreshDirect’s market share has dropped nearly 400 bps since 2022 as competitors Instacart and Amazon Fresh expanded. Today, FreshDirect and Uber Eats announced a joint partnership that allows customers to buy FreshDirect’s product directly from the Uber Eats app, a move that has the potential to change the competitive landscape.
The partnership makes strategic sense for FreshDirect as the company has steadily lost customers due to service issues, financial struggles, and leadership turbulence. One bright spot for FreshDirect is among shoppers who also use Uber Eats, with Consumer Edge Transaction data showing these shared customers spending more on average than before. This partnership could benefit FreshDirect by both attracting new customers and increasing spending among existing shared customers over time.
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About the Authors
Harsh Masher is an Insights Analyst for the CEIC.
