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DoorDash and Walgreens enable SNAP payments for delivery

Published 24/04/2024, 16:34
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SAN FRANCISCO - DoorDash (NASDAQ: NASDAQ:DASH) and Walgreens (NASDAQ: WBA) have announced a partnership that will allow nearly 7,800 Walgreens stores nationwide to accept Supplemental Nutrition Assistance Program (SNAP) Electronic Benefit Transfer (EBT) payments for deliveries. This move positions DoorDash as the first third-party delivery service to offer SNAP/EBT payment options at a major drugstore chain across the United States.

The collaboration aims to expand food access, particularly in areas identified as food deserts and in communities with a high proportion of SNAP beneficiaries. As a result of this partnership, DoorDash has more than doubled its store count for on-demand delivery where SNAP/EBT payments are accepted.

DoorDash's initiative comes in response to the growing need for convenient access to food and pantry essentials, especially as grocery and household essentials prices continue to rise. Walgreens will offer over 4,000 SNAP-eligible products available for delivery within an hour through the DoorDash app.

The integration of SNAP/EBT payments into the DoorDash platform follows the company's support for these payments launched in 2023. Since then, more than 1.1 million consumers have linked their SNAP/EBT cards to the DoorDash app, according to Fuad Hannon, VP of New Verticals at DoorDash.

Walgreens' Chief Product Officer Balachandra Visalatha emphasized that the partnership with DoorDash is a step towards providing their shoppers with easier access to healthier food options, regardless of payment methods or other barriers.

DoorDash has further committed to supporting SNAP/EBT consumers by offering a $0 delivery fee on up to three orders at Walgreens for non-DashPass subscribers, with certain terms and conditions applying. DashPass members already enjoy benefits such as $0 delivery fees and reduced service fees on eligible orders at various restaurants, grocery, and convenience stores.

This initiative extends the convenience of SNAP/EBT payments to online purchases, as Walgreens stores already accept SNAP/EBT for in-person transactions at most locations.

The information for this article is based on a press release statement.

InvestingPro Insights

As DoorDash (NASDAQ: DASH) expands its services to support SNAP/EBT payments through its partnership with Walgreens, investors and customers alike may be curious about the company's financial health and market performance. Here are some key insights from InvestingPro that shed light on DoorDash's current financial position:

DoorDash boasts a significant market capitalization of $52.26 billion, indicating its substantial size and influence in the market. The company's revenue growth has been impressive, with a 31.17% increase over the last twelve months as of Q4 2023. This growth is a testament to DoorDash’s expanding reach and its ability to capitalize on the increasing demand for delivery services.

The company's stock has experienced strong returns, with a 69.41% price total return over the last six months and an even more remarkable 116.03% return over the last year. This performance highlights the positive investor sentiment and the market's confidence in DoorDash's business model and growth prospects.

InvestingPro Tips for DoorDash reveal a mix of strengths and cautions: the company holds more cash than debt, suggesting a solid financial cushion. Analysts predict the company will be profitable this year, which could signal a turning point for its earnings trajectory. However, it is important to note that DoorDash has been trading at high revenue and Price/Book valuation multiples, indicating that the stock may be priced optimistically relative to its book value and sales.

For those interested in a deeper dive into DoorDash's financials and market performance, InvestingPro offers additional insights. There are currently 12 more InvestingPro Tips available, providing a comprehensive analysis of the company's prospects. To access these tips and enhance your investment strategy, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at https://www.investing.com/pro/DASH.

With the next earnings date approaching on May 1, 2024, investors will be keenly watching to see if DoorDash's strategic initiatives, like the Walgreens partnership, will translate into sustained financial performance and profitability.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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