Food delivery company DoorDash (NYSE: DASH) apparently entered into an agreement Albertsons Companies (NYSE: ACI), a large grocery and supermarket business whose chain contains more than 2,700 stores, making it only the second in size Kroger (NYSE: KR) in the USA. Albertsons operates approximately 18 different chains, with major names including Safeway, Vons, Shaw’s, Albertsons, Acme Markets and Jewel-Osco.
According to a report by SFGATE, Albertsons will begin using DoorDash’s delivery services for Safeway and Vons locations on February 27th. The supermarket business will also start firing delivery managers for these chains. A representative of Albertsons, Wendy Gutshall, said the move “would enable us to compete more effectively in the growing home delivery market” and that the new strategy is the result of “a lot of consideration.”
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While the treaty between DoorDash and Albertsons was broken due to news reports about activists in California by Knock.LA, the Los Angeles Times reports DoorDash will start delivering for the chains all over America and not just in the Golden State.
Several sources, including the California Labor Federation, nonetheless allege that the alliance is the result of California’s 22 proposal. well to destroy. paying work of ‘managers, which the union calls’ dedicated frontline workers’ during the pandemic.
Proposal 22 enables delivery companies such as DoorDash to classify their workers as independent contractors, so that under labor law they do not have to offer standard benefits to employees. DoorDash contributed $ 52.1 million to support the progress of Prop 22.
DoorDash has made significant inroads with an expensive IPO, but has since made analysts’ predictions that it would not be able to meet its initial $ 50 billion valuation.