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DoorDash (DASH) Expands Marketplace With Save Mart Companies

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DoorDash (DASH - Free Report) recently entered into a partnership with the Save Mart Companies to bring Save Mart, Lucky and FoodMaxx shops to its DoorDash Marketplace.

The partnership will provide consumers in California and Nevada access to Save Mart, Lucky and FoodMaxx on DoorDash, allowing them to have groceries delivered to their door the same day in under an hour on average.

In 2020, DoorDash introduced on-demand grocery delivery, giving grocers the tools and technology to reach new and loyal customers wherever and however they choose to purchase.

DoorDash's membership program, DashPass, which doesn’t charge its members any delivery costs from thousands of restaurants, grocery stores and convenience stores nationwide, will include the participating Save Mart, Lucky and FoodMaxx stores. The benefit will be available to DashPass users on all eligible orders of $35 or more from Save Mart, Lucky and FoodMaxx locations.

The company also announced that users will soon be able to access and purchase SNAP-eligible grocery products from these businesses on DoorDash using their SNAP/EBT card.


DoorDash’s Robust Portfolio Aids Prospects

DoorDash shares have gained 94.8% year to date compared with the Zacks Internet Service industry’s rise of 52%.

The company reported third-quarter 2023 revenues of $2.2 billion, which increased 27% year over year, thanks to a strong portfolio, improvements in logistics efficiency and a growing contribution from advertising.

Total orders increased 24% year over year to $543 million. Marketplace GOV increased 24% year over year to $16.8 billion.

The company witnessed a year-over-year surge in monthly active users in September at a double-digit rate, with strong contributions from domestic and international markets.

DoorDash recently collaborated with ALDI to expand delivery services to over 1,200 locations.

With the expansion, approximately 80% of DoorDash customers now have age-verified access to alcohol delivery.

DoorDash also expanded its partner network with the addition of Eataly, El Super and Fiesta Mart, broadening the reach of on-demand grocery delivery across multiple regions.

For the fourth quarter of 2023, DoorDash expects Marketplace GOV in the range of $17-$17.4 billion.

The Zacks Consensus Estimate for fourth-quarter 2023 revenues is pegged at $2.24 billion, indicating 23.2% year-over-year growth.

The consensus mark for 2023 loss has narrowed 48% to $1.26 per share over the past 30 days.

Zacks Rank & Other Stocks to Consider

DoorDash currently has a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the broader Zacks & Technology sector are NVIDIA (NVDA - Free Report) , Flex (FLEX - Free Report) , and Badger Meter (BMI - Free Report) . NVIDIA, Flex, and Badger Meter each sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

NVIDIA shares have gained 238.6% in the year-to-date period. NVIDIA's long-term earnings growth rate is currently projected at 13.50%.

Flex shares have gained 22.9% in the year-to-date period. Flex’s long-term earnings growth rate is currently projected at 12.39%.

Badger Meter’s shares have gained 35.8% in the year-to-date period. Badger Meter’s long-term earnings growth rate is currently projected at 20.39%.

See More Zacks Research for These Tickers

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Badger Meter, Inc. (BMI) - free report >>

NVIDIA Corporation (NVDA) - free report >>

Flex Ltd. (FLEX) - free report >>

DoorDash, Inc. (DASH) - free report >>

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