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Loblaw Teams Up with Uber to Acquire Carless Consumers

Loblaw Teams Up with Uber to Acquire Carless Consumers

ONTARIO - Loblaw and Uber? What’s a retailer doing joining forces with a ride-sharing service?

Uber has announced a new promotion in partnership with the Canadian grocer to help customers without cars pick up groceries they have ordered online.

Loblaw’s “Click & Collect” e-commerce service, which is still currently in a test phase in three Toronto-area locations, allows customers to order their groceries online and pick up the items in-store. The service is intended to speed up the grocery trip.

“In Toronto, we want to connect with Canadian companies, Canadian brands,” said Susie Heath, Uber Spokesperson, according to The Globe and Mail. “By partnering with a brand like Loblaw, that’s a great way of connecting with Canadian consumers.”

The promotion runs from April 14 to April 20, and Uber says it will provide free rides valued at up to $30 from one of three Loblaw Click & Collect locations. Customers who complete their Click & Collect order with Uber will also be entered in a contest to win $1,000 in free groceries at Loblaw locations in Toronto. In addition, every Click & Collect shopper that’s new to Uber and uses the service to pick up their groceries will receive a voucher for $10 off their next Click & Collect purchase.

“We believe there is a high level of commonality between the typical Uber user and Loblaw’s Click & Collect user: Both are technologically savvy and utilize social media and apps regularly, both are digital early trend adopters and both value service that help to simplify a busy urban lifestyle,” said Peter Sklar, a BMO Nesbitt Burns retail analyst, according to The Globe and Mail.

Uber has faced some opposition from the City of Toronto who argued that the company’s model violates municipal taxi regulations. Despite these claims, Toronto Mayor John Tory has supported the service, saying that it technologies like Uber are “making people’s lives easier” and that regulators need to adapt to a changing world, The Globe and Mail reports.

The promotion is an interesting experiment and could lend some legitimacy to Uber in Toronto, but it remains to be seen how the courts will rule.