Online grocers join forces

Two online grocers are combining to better serve their customers: Door to Door Organics is merging with Relay foods, growing the combined delivery area to 63 markets.

The new company will operate under a new, yet-to-be disclosed brand.

In connection with the merger, the companies also announced the closing of an additional $10 million in equity financing provided by The Arlon Group and existing Relay stockholders. The new company has an annual worth estimated at more than $50 million, Bob Bishop, chief architect of research firm Brick Meets Click, told The Denver Post.

Louisville, Colorado-based Door to Door Organics delivers organic, natural and local food to consumers in 16 states in the Midwest, West and East Coast. Similar to Charlottesville, Virgina-based Relay Foods, Door to Door Organics has more than 200 local farming partners or suppliers.

Relay was founded in 2009 and serves much of Virginia, Washington, D.C, Baltimore and parts of North Carolina. Together, the new company will reach consumers in 63 markets across 18 states and Washington, D.C.

"I've long been impressed with the success of Relay Foods and their ability to intertwine smart growth and best-in-class technology with an unwavering commitment to local food, sustainability and the simplification of meal planning," said Door to Door Organics CEO Chad Arnold. "Our goal is the same: to inspire, empower and reward consumers to live the healthy, aspirational food lives they envision. By joining forces, we hope to achieve that goal even faster, all while delivering the best online grocery experience possible."

Competition to provide grocery delivery is heating up as Amazon expands Fresh, Whole Foods partners with Instacart, and Walmart expands tests including its latest with Uber and Lyft.

For more:
- see this Door to Door Organics announcement
- see this Denver Post story

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