Kroger Faces Pitfalls In Deal With Uber

Kroger’s streak of quarterly same-store gains has ended after 13 years, but the supermarket giant is intent on starting a new run. Part of the strategy may be evident in a home delivery pilot the chain is running with Uber, an initiative designed to help “solve the last mile equation” for grocery consumers, according to Kroger CEO Rodney McMullen via Seeking Alpha.

“We’re testing with Uber delivery in several locations with plans to expand in 2017 where our customers can order through ClickList and choose to have their groceries delivered by a local Uber driver,” said McMullen on Kroger’s earnings call last week. “We have a couple of other home delivery tests as well."

Until now, Kroger has concentrated its online efforts on ClickList, its ordering and in-store pickup system. Last year the company announced plans to offer the service at up to 1,200 stores, approximately 45% of its locations. Kroger is slightly more than halfway to its goal with 640 stores currently offering the service.

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