Kroger has extended its delivery footprint to Uber Eats, Uber, and Postmates, making almost 2,700 of its Family of Companies stores available for on‑demand and same‑day grocery, household, and private‑label product delivery across the United States.
The move is a key element of Kroger’s omnichannel strategy, which has already included partnerships with Instacart and DoorDash. By tapping Uber’s extensive driver network, Kroger can offer customers a single‑app experience while keeping full control over inventory and pricing, a model that has proven scalable in its previous collaborations.
The expansion is expected to lift order volume and reinforce Kroger’s competitive moat, but it also introduces margin pressures from delivery fees, promotional incentives, and the cost of scaling the new channels. Management has emphasized that the partnership requires minimal capital outlay, positioning it as a low‑risk growth lever.
Kroger’s focus on e‑commerce profitability has intensified since the failed Albertsons merger in December 2024. The company is closing some automated fulfillment centers and deepening third‑party delivery relationships to keep costs in check while expanding its private‑label “Our Brands” portfolio, which offers higher margins during inflationary periods.
Jody Kalmbach, Kroger’s Digital Experience and eCommerce Group Vice President, said the partnership “aligns with our commitment to meeting customers wherever they are, providing convenient, reliable delivery that supports our broader omnichannel vision.” Hashim Amin, Uber’s North American Head of Grocery and Retail, added that the collaboration “offers shoppers a simple, reliable way to get groceries whenever they need them.”
Analysts have noted a mixed reaction: while the partnership is praised for accelerating digital growth and enhancing retail‑media opportunities, concerns remain about the cost of zero‑delivery promotions and the potential impact on margins. The market view reflects a balance between long‑term strategic gains and short‑term execution risks.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.