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DoorDash (DASH), Wing Team Up to Launch Drone Delivery In US

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DoorDash (DASH - Free Report) is expanding its footprint in the food delivery services domain through a recent partnership with Alphabet’s (GOOGL - Free Report) drone delivery technology arm, Wing.

As DoorDash and Alphabet’s subsidiary Wing introduce drone delivery services to select customers in Christiansburg, VA, via its initial restaurant partner, Wendy’s, this partnership marks an advancement in last-mile logistics.

The move by DoorDash is an indication of a commitment to providing reliable and sustainable delivery options within America. DASH and Wing are expanding their operations into the United States following its successful drone delivery program that started in Australia. It has now expanded to three locations with over 60 participating merchants.

The partnership between DoorDash and Wing is not only aimed at improving consumer convenience but also confirms its common objective of advancing last-mile logistics as drones are set to transform the delivery industry.

DoorDash, Inc. Price and Consensus

 

DoorDash, Inc. Price and Consensus

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

 

DASH’s Robust Portfolio Aids Prospects

DoorDash’s shares have gained 38.3% in the year-to-date period compared with the Zacks Computer & Technology sector's rise of 11.7%.

The outperformance can be attributed to DoorDash’s commitment to advancing last-mile logistics through partnership, enhancing convenience and sustainability in the delivery ecosystem.

DoorDash’s success is further bolstered by its robust total orders, which have increased by 23% year-over-year, amounting to $574 million in the fourth quarter of 2023. Marketplace Gross Order Value (GOV) experienced a 22% increase year-over-year, reaching $17.6 billion.

Expanding portfolio has been a key catalyst. In January, DASH welcomed new retail partners like Camping World, Golf Galaxy, JD Sports, Finish Line and The Vitamin Shoppe, thereby diversifying its marketplace to include more than 100,000 non-restaurant stores. The expansion offers consumers on-demand delivery for a diverse array of products catering to active and wellness lifestyles.

DoorDash’s recent expansion of SNAP/EBT payment options to over a dozen new grocers, aiming to increase food access for millions nationwide while offering two free months of DashPass to new customers who uploaded their SNAP/EBT cards, further enhances the company’s mission of providing inclusive and convenient services to all.

DoorDash's introduction of SafeChat+, leveraging AI to detect and prevent verbal abuse or harassment in in-app conversations, underscores its commitment to fostering a safer and more positive experience for all users, enhancing trust and reliability in its platform.

DoorDash’s strong portfolio and partner base are contributing to its growth prospects continuously, thereby driving top-line growth.

For first-quarter 2024, DoorDash anticipates Marketplace GOV in the range of $18.5-$18.9 billion.

The Zacks Consensus Estimate for first-quarter 2024 revenues is pegged at $2.45 billion, indicating 20.52% year-over-year growth.

Zacks Rank & Stocks to Consider

DoorDash currently has a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader technology sector are Bill Holdings (BILL - Free Report) and Cadence Design Systems (CDNS - Free Report) , each sporting Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Bill Holding’s shares have declined 18.5% in the year-to-date period. BILL’s long-term earnings growth rate is currently projected at 23.64%.

Cadence Design Systems shares have gained 14.5% in the year-to-date period. CDNS’s long-term earnings growth rate is currently projected at 17.07%.

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