Target, Coles join Uber Eats for rapid delivery under 60 minutes

Target and Coles have launched on-demand delivery through Uber Eats in Australia, challenging Amazon's five-hour delivery minimum in major cities.
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Target has joined Uber Eats in Australia, allowing customers to order from more than 25,000 fashion, home and everyday goods for delivery in under 60 minutes, Uber said in a statement. The partnership is rolling out through selected stores in high-demand areas, with expansion to additional participating stores planned for the new year.

Coles and Uber Eats have expanded their partnership to offer on-demand grocery delivery through the Uber Eats app, Uber said in a separate statement, launching initially in Melbourne from nearly 40 locations. Coles plans to add more than 500 stores across Australia to the Uber Eats platform. Uber One members can access $0 delivery fees on eligible Coles orders.

The moves pit both retailers against Amazon, which in Australia offers delivery no faster than five hours to Sydney and Melbourne locations for eligible orders. Big W has made over 35,000 products available on DoorDash, with 156 stores participating and a delivery window of as little as one hour, SmartCompany reported.

Target's Uber Eats listing spans fashion, beauty, homewares, toys and baby categories. Bernard Wilson, chief customer officer of Kmart and Target, said in Uber's statement that the partnership is another means of making it easier for customers to shop wherever and whenever suits them. Lucas Groeneveld, managing director of Uber Eats Australia and New Zealand, said customers increasingly expect to obtain what they need without planning days in advance.

Uber has also announced it will extend support to Coles and Liquorland for last-mile delivery of online orders, with a two-hour delivery option selectable at checkout. A SmartCompany contributor and founder of The Party People argued that physical stores, once viewed by some as a liability relative to online retailers, may prove to be among retailers' strongest competitive assets.

Australian consumers in areas served by participating Target stores can now order products through the Uber Eats app and receive them in under 60 minutes. Retailers considering these marketplaces need to assess whether commission, picking and delivery costs are covered by the margin on orders gained, and whether orders are truly additional sales or existing volume moved into a costlier channel.

Official statements: Uber

Reporting: SmartCompany, Yahoo Finance

Written by Pick & Scroll News from the reporting and documents linked above.