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DoorDash (DASH) Boosts Customer Base With ASO Partnership

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DoorDash (DASH - Free Report) recently announced its collaboration with Academy Sports and Outdoors (ASO - Free Report) to enhance the convenience and accessibility of shopping for sports and outdoor essentials.

The partnership aims to transform the shopping experience during the upcoming Back-to-School season by offering on-demand delivery from the Academy’s extensive network of 285 stores across 19 states.

Through the DoorDash app, customers can seamlessly browse and purchase Academy products, enjoying the convenience of same-day delivery within an hour.

With the Academy’s integration into DashPass, DoorDash’s membership program, shoppers gain access to a host of benefits, including $0 delivery fees and reduced service charges on eligible orders from thousands of restaurants, grocery and convenience stores nationwide.

DoorDash, Inc. Price and Consensus

 

DoorDash, Inc. Price and Consensus

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

 

Dash’s Expanding Clientele Boosts Prospects

The latest move bodes well with DASH’s commitment to diversify its offerings and strengthen its presence in the retail sector.

Expanding Clientele has been noteworthy. DASH is enhancing its on-demand delivery through partnerships with Lowe’s Companies (LOW - Free Report) and Alphabet (GOOGL - Free Report) , which have been a major growth driver.

In April, DASH announced its partnership with Lowe’s Companies, bringing on-demand delivery from more than 1,700 stores nationwide, marking its first venture into the home improvement category and enriching its vast selection offerings for consumers.

In March, DASH collaborated with Alphabet’s drone delivery technology arm, Wing, to launch a drone delivery partnership in the United States, starting in Cristianburg, VA. The deal offers select local customers the option to have Wendy’s meals delivered via drone through the DoorDash marketplace.

The partnerships are expected to bolster DoorDash’s total orders, which increased 21% year over year to $620 million in first-quarter 2024. Marketplace Gross Order Value (GOV) experienced a 21% increase year over year, totaling $19.2 billion.

However, intense competition in the largest category of its business, the local food delivery logistics has been a headwind.

The stock has returned 13.5% compared with the Zacks Computer & Technology sector’s rise of 19% year to date.

Conclusion

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

For second-quarter 2024, the Zacks Rank #3 (Hold) company anticipates Marketplace GOV to be in the range of $19-$19.4 billion. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for second-quarter 2024 revenues is pegged at $2.54 billion, indicating 18.97% year-over-year growth.

The Zacks Consensus Estimate for earnings is pegged at a loss of 8 cents per share, a cent narrower in the past 30 days.

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