Supermarket chain Albertson's Inc. on Friday said it will begin offering grocery delivery services online today in Portland, OR. The move puts it in direct competition with rival Safeway Inc., which already offers Internet-based delivery services in the city.
Albertson's, Boise, ID, said it will offer online ordering and delivery in 53 neighborhoods in Portland through 31 supermarkets. Customers can order groceries at www.albertsons.com and have them delivered or pick them up at their nearest Albertson's store.
Portland is where Safeway first launched its online delivery earlier this year. Last month, Safeway began service in Sacramento, CA. It also offers service in Vancouver, WA.
Safeway's service is similar to Albertson's but does not offer in-store pick-up. Both supermarket chains charge $9.95 for their online home delivery services. Albertson's charges $4.95 for in-store pick-up. Albertson's also serves San Diego, Los Angeles and Seattle.
Both supermarkets plan to expand their online home delivery services to San Francisco soon, hoping to fill the void left by Webvan, which folded, and Peapod, which left the area.
Analysts noted that Albertson's and Safeway have an advantage over Webvan and Peapod because they can deliver their groceries to customers through existing stores, saving on infrastructure costs.