DoorDash CEO Tony Xu recently spoke at the Goldman Sachs technology conference in San Francisco, addressing the challenges and opportunities in the grocery delivery sector. While DoorDash is primarily known for delivering restaurant food, the company also offers grocery delivery services.

Xu highlighted the significant potential for growth in grocery delivery, describing it as an “underpenetrated” market. However, he noted that consumers often find the online grocery shopping experience to be inferior to the traditional in-store experience.

“People have been working on this since the 1970s, and there is still a long way to go in grocery,” Xu stated during the conference. He emphasized the need to find the right product-market fit to encourage more consumers to embrace online grocery shopping fully.

Xu’s comments reflect the ongoing challenges faced by grocery delivery services in providing a seamless and satisfactory experience for customers. While the convenience of online grocery shopping is appealing, ensuring that it matches or exceeds the in-store experience remains a significant hurdle for companies operating in this space.

DoorDash is actively working to address the existing issues with grocery delivery services, although specific details about their initiatives were not provided during the conference.

Xu’s remarks underscore the competitive nature of the grocery delivery industry, with companies like Instacart also vying for market share. As consumer preferences continue to evolve, the race to create a superior online grocery shopping experience remains a key focus for these companies.