SAN FRANCISCO - DoorDash (NASDAQ:DASH) has broadened its partnership with Wegmans Food Markets to offer grocery delivery from all Maryland Wegmans locations, the local commerce platform announced today. The service will extend to Virginia, North Carolina, New Jersey, Delaware, and upstate New York shortly, with additional stores to follow. This collaboration builds upon the existing DoorDash and Wegmans Meals 2GO service, which delivers hot and ready-made meals to customers.
The expansion aligns with DoorDash's fast-growing grocery segment, which has seen a significant rise in consumer orders from new verticals. Fuad Hannon, VP of New Verticals at DoorDash, noted Wegmans' reputation for quality foods and superior grocery experience. "We're proud to help extend their brand to the DoorDash Marketplace," Hannon stated.
Wegmans, recognized as one of the top U.S. grocery stores, offers a selection that includes restaurant-quality meals, artisan breads, fresh produce, and international cheeses. Erica Tickle, Wegmans Vice President of Marketing and Digital Growth, expressed that the extended delivery options through DoorDash are part of Wegmans' commitment to convenient and healthy living.
To mark the partnership's expansion, DoorDash is offering a promotion through October 31, 2024, giving customers 40% off on orders of $50 or more (up to $25 off) with the promo code WEGMANS at participating locations. Wegmans is also featured on DashPass, DoorDash's subscription service, which provides members with benefits such as $0 delivery fees on eligible orders.
DoorDash, which entered the on-demand grocery delivery market in 2020, continues to provide grocers with the technology to reach customers in various shopping modes. The information for this expansion is based on a press release statement.
In other recent news, DoorDash has been the subject of positive attention from multiple financial firms. Oppenheimer has increased the price target for DoorDash to $160 based on a survey revealing positive consumer spending trends on delivery services. Similarly, KeyBanc upgraded DoorDash from Sector Weight to Overweight, setting a new price target of $177, citing the company's growth prospects in food and grocery delivery.
BTIG also upgraded DoorDash shares from Neutral to Buy, setting a price target of $155, based on the company's near-term performance and under-appreciated longer-term growth drivers. Truist Securities maintained a Buy rating on DoorDash, highlighting the company's strong user growth and strategic partnerships. Raymond James initiated coverage on DoorDash with an Outperform rating, suggesting potential for profitability growth in the company's international and new market segments.
These recent developments reflect analysts' confidence in DoorDash's market position, user growth, and strategic partnerships. However, these are analyst expectations and not guarantees of future performance.
InvestingPro Insights
DoorDash's expanded partnership with Wegmans Food Markets aligns well with the company's strong financial performance and growth trajectory. According to InvestingPro data, DoorDash has demonstrated impressive revenue growth, with a 25.02% increase in the last twelve months as of Q2 2023, reaching $9.61 billion. This expansion into new markets and the strengthening of existing partnerships likely contribute to this robust growth.
InvestingPro Tips highlight that DoorDash's stock price has shown significant momentum, with a strong return of 90.69% over the past year. This performance may reflect investor confidence in the company's strategic moves, such as the Wegmans partnership expansion.
Despite not being profitable over the last twelve months, analysts predict that DoorDash will turn profitable this year, as noted in the InvestingPro Tips. This expectation could be driven by the company's expanding market presence and its focus on high-growth segments like grocery delivery.
It's worth noting that DoorDash is trading near its 52-week high, which aligns with the positive news of its expanding partnerships and market reach. Investors interested in a deeper analysis can find 12 additional InvestingPro Tips for DoorDash, offering a more comprehensive view of the company's financial health and market position.
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