Companies are increasingly looking for ways to understand and profitably leverage digital transformation with a vast amount of new communications and computing technologies. Despite the potential for digital transformation to generate substantial economic benefits, very few businesses have undergone successful digital transformations. However, evolving consumer attitudes and behaviors, technological advances, new competitive pressures, and laser thin margins, accelerated by the COVID-19 pandemic, are driving digital transformation in the grocery business. Brick and mortar, e-commerce companies, as well as new startups, are making major investments in all aspects of the digital grocery ecosystemthe online shopping experience, automated picking, delivery, and the digital supply chain. Retailers are connecting their investments to enhanced customer loyalty, revenue, and ultimately profit. This research-based on inductive methods-aims to discuss key drivers and technologies utilized in digital grocery business and contributes by introducing a model of digital grocery ecosystem to better understand digital transformation of the grocery business.