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DoorDash (DASH) Expands Partnership With EG America in the US

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DoorDash (DASH - Free Report) has expanded its partnership with EG America to provide customers in the United States with on-demand delivery of snacks, sandwiches, pizza and its farmhouse blend coffee.

EG America is availing the on-demand delivery platform of DoorDash to sell goods from more than 800 participating Cumberland Farms, Fastrac, Sprint and Minit Mart stores. Per the current plans, EG America expects to increase its services to more than 1,300 EG convenience brand locations by the end of October.

DoorDash’s recent partnership with EG America is expected to drive its total orders and marketplace gross order volume (GOV), and boost e-commerce on its platform. The recent deal with EG America is part of DoorDash’s strategy to expand its partnerships and build meaningful acquisitions to expand global operations and increase the top line.

DoorDash’s Top Line Rides on Partnerships & Acquisitions

DASH is reeling under the impacts of inflation. Rising input costs due to the raging inflation are creating major headwinds.

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. It reported a loss of 30 cents in the year-ago period.

DoorDash, Inc. Price and Consensus

 

DoorDash, Inc. Price and Consensus

DoorDash, Inc. price-consensus-chart | DoorDash, Inc. Quote

Shares of this Zacks Rank #3 (Hold) have slumped 70.9% year to date compared with the Zacks Internet - Services industry’s decline of 31%. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

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

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

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 bodes well for the long haul.

Nevertheless, in order to win a good share in a highly fragmented e-commerce market, DoorDash is consistently investing heavily in acquisitions and expanding its partner base to fortify its footprint.

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 likely aid DASH’s platform with its products and technologies. This will offer merchants more solutions for their in-store and online channels, including in-store digital ordering and payments.

DoorDash recently partnered with Big Lots (BIG - 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.

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. The partnership will boost DASH’s total orders and marketplace GOV, aiding its top-line growth.


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