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SAN FRANCISCO - DoorDash (NASDAQ:DASH), which has delivered impressive revenue growth of nearly 24% over the last twelve months and maintains a "GREAT" financial health rating according to InvestingPro, announced Tuesday the launch of DashMart Fulfillment Services, a new business model that allows retailers to expand their delivery capabilities without managing their own logistics infrastructure.
The service utilizes DoorDash’s network of DashMart locations to handle inventory management, picking, packing, and delivery through its Dasher network. CVS Pharmacy and Party City are the first retailers to adopt the service, with Kroger expected to join soon.
Through this arrangement, Party City has expanded its reach to nearly every major metropolitan area in the United States, while CVS Pharmacy is leveraging the service to provide quick delivery of healthcare essentials, including during late hours and holidays.
"Today’s consumers expect delivery in minutes, and around the clock. For many retailers and grocers, meeting that demand requires massive investment in logistics and technology," said Fuad Hannon, VP of New Verticals at DoorDash, according to the press release.
The fulfillment service allows retailers to sell their products on DoorDash’s platform or through their own channels while DoorDash manages the operational aspects of order fulfillment. This model eliminates the need for retailers to invest in new infrastructure or technology.
DoorDash currently operates more than 100 DashMart locations, which are delivery-focused local stores stocked with groceries, retail items, household essentials, and local products.
The company’s Wolt subsidiary offers a similar service called Wolt Fulfillment in international markets through its Wolt Market stores. With the stock showing remarkable momentum, delivering a 91% return over the past year, investors seeking detailed analysis can access the comprehensive DoorDash research report available on InvestingPro, which includes Fair Value estimates and growth projections.
In other recent news, DoorDash Inc. has been at the center of several significant developments. DoorDash and Yelp Inc. announced a new partnership to integrate DoorDash’s delivery network into the Yelp platform, providing users access to over 500,000 restaurants across the U.S. Additionally, Kroger Co. expanded its collaboration with DoorDash to offer nationwide grocery delivery from nearly 2,700 stores, allowing customers to order a full range of products with delivery in as little as an hour. Furthermore, DoorDash is set to acquire Deliveroo Plc, with the acquisition expected to close soon, leading to the departure of Deliveroo’s CEO Will Shu and its entire board.
In analyst news, Mizuho initiated coverage on DoorDash with an Outperform rating, citing its strong execution in the on-demand food delivery sector. Meanwhile, DoorDash partnered with Sally Beauty for a three-day pop-up event in New York City, featuring free beauty products and daily contests. These developments highlight DoorDash’s strategic expansions and partnerships in the delivery and retail sectors.
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