DoorDash (DASH Quick QuoteDASH - Free Report) has partnered with Big Lots (BIG Quick QuoteBIG - Free Report) to provide customers in the United States with on-demand delivery of its bargains, treasures and home essentials.

DoorDash, as part of the partnership, will deliver more than 36,000 products to customers of Big Lots, including home goods, seasonal décor, bedding, snacks and pantry staples, cleaning products, outdoor essentials, and pet care supplies via the DoorDash app and website.

Big Lots is a home discount retailer business, operating across more than 1,440 stores in 48 states along with an e-commerce platform. BIG is strategically building its pricing structure to offer low-priced products and more bargains to increase traffic on its platform.

DoorDash’s recent partnership with Big Lots is expected to drive its total orders and marketplace gross order volume (GOV), and boost e-commerce on its platform.

DoorDash, Inc. Price and Consensus

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DoorDash Rides on Partnerships to Boost Total Orders

DoorDash is reeling under the effects of inflation. Rising input costs due to the raging inflation persist as a major headwind. In the second quarter of 2022, DASH reported a loss of 72 cents per share, wider than the Zacks Consensus Estimate of a loss of 39 cents. The year-ago period had reported a loss of 30 cents.

Rising expenses lowered DoorDash’s ability to maintain profitability in the past quarters, and the trend is expected to continue in the coming quarters. DASH’s continued net losses impacted its share price negatively.

Shares of DoorDash have slumped 70.9% in the year-to-date period compared with the Zacks Internet - Services  industry’s decline of 31%.

Also, DoorDash’s on-demand delivery service is facing extensive competition from major local delivery logistics platforms like Uber Technologies (UBER Quick QuoteUBER - Free Report) and large Internet-based companies, such as Amazon (AMZN Quick QuoteAMZN - Free Report) .

Uber’s Delivery business is witnessing a boom with the rising online order volumes. UBER is expanding its delivery operations through various acquisitions, such as Postmates. Postmates’ buyout is expanding UBER’s base in Los Angeles and the American Southwest and helping the company win strong market share amidst competition.

Amazon is one of the world’s largest e-commerce companies with diversified product offerings. Product selection, a superior user experience, bargains and customer feedback helped AMZN build a loyal and growing customer base in the fast-growing e-commerce market. Growth in the e-commerce industry during the pandemic, with consumers increasingly buying things online, proved favorable for AMZN, which in turn, also bodes well for the long haul.

However, to win a plum share in a highly fragmented e-commerce market, DoorDash, currently carrying a Zacks Rank #3 (Hold), is also consistently investing heavily in strategic acquisitions and expanding its partner base to fortify its footprint. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

The recent acquisition of Wolt will help DoorDash fast-track its product development, grow its international base across 26 countries, and bring a greater focus to its markets outside the United States. The acquisition of hospitality technology company Bbot will add its products and technology to DASH’s platform. This will offer merchants more solutions for their in-store and online channels, including in-store digital ordering and payments.

DoorDash partnered with Albertson Companies, a food and drug retailer, to provide express grocery delivery services within 30 minutes across 20 major cities in the United States. DASH also partnered with Grocery Outlet to serve more than 1.5 million shoppers each week and provide supplies at 40-70% below retail price. This partnership will boost DASH’s total orders and marketplace GOV.