Aldi Storms Grocery Delivery Market with DoorDash Deal: Slashed Prices Leave Rivals Reeling

Aldi Australia on 8 July launched a bold assault on the grocery delivery market, partnering with DoorDash to offer home delivery for the first time.

Starting in Canberra, the German discount giant's move challenges supermarket titans Coles and Woolworths, who have long dominated online grocery services.

With over 1,800 products available at Aldi's signature low prices, the trial promises convenience without breaking the bank.

Launch a Price War Offensive

Aldi's partnership with DoorDash, announced as a 'first-ever grocery delivery trial', brings over 1,800 products, including fresh produce, meat, seafood, dairy, and household staples, to Canberra doorsteps via the DoorDash app.

Unlike its rivals, Aldi has resisted delivery to maintain its low-cost model, but consumer demand for convenience post-pandemic forced a rethink.

Jordan Lack, Aldi Australia's chief commercial officer, emphasized: 'Since entering the Australian market, ALDI's mission has been to deliver high-quality groceries at the lowest prices'.

While in-store prices remain lower, DoorDash's delivery and service fees apply, though Aldi claims its baseline pricing keeps it competitive.

A promotional offer gives new DoorDash users 30% off their first order with code EARLYBIRD, up to £16 ($21.81), until 15 July 2025.

Spark Consumer Excitement

The announcement ignited social media, particularly in Canberra. X user @phonakins celebrated: 'Aldi Australia is teaming up with delivery service DoorDash to trial grocery deliveries'.

Meanwhile, @YahooFinanceAU cautioned: 'Aldi delivery warning as supermarket takes on Coles, Woolworths with online move: "Don't assume"', noting higher app prices.

These posts reflect enthusiasm tempered by cost concerns. Shoppers with mobility issues or busy schedules welcome the convenience, but some question whether fees will erode Aldi's value proposition.

The trial's success in Canberra will determine its national rollout, targeting 85% of Australian households.

Challenge Supermarket Giants

Aldi's entry intensifies Australia's grocery delivery price war, where Coles and Woolworths have partnered with DoorDash and Uber Eats for years.

Finder's Angus Kidman noted: 'Using DoorDash means no additional labour costs, while still letting it compete with the big two'.

Aldi's strategy leverages DoorDash's logistics to avoid costly infrastructure investments, unlike competitors who built their own platforms.

In the US, Aldi's 2023 DoorDash partnership covers 2,100 stores, serving 98% of DoorDash's US customers.

Australia's trial, if successful, could generate 20–50 additional daily orders per store, per DoorDash estimates.

Coles and Woolworths, holding 65% of the £26.4 billion ($36 billion) grocery market, now face pressure to lower delivery fees or enhance services to compete.

Leverage Strategic Timing

The timing of Aldi's move aligns with shifting consumer habits. Post-pandemic, online grocery sales in Australia grew to £3.2 billion ($4 billion) annually, with a projected 2.4% increase over five years, per Brick Meets Click.

Aldi's DoorDash deal marks a pivotal shift, bringing its low prices to the online arena and challenging Coles and Woolworths' dominance.

While delivery fees may dent savings, the trial offers unmatched convenience for Canberra shoppers, with national expansion looming.

Consumers must weigh costs against benefits, especially those relying on Aldi's affordability. This move signals a broader trend: even budget retailers must adapt to digital demands.

Share your thoughts and help shape a more accessible grocery future, as Aldi's bold step could transform how Australians shop for essentials.