This article was originally published on TipRanks.com
DoorDash, Inc. (DASH) is launching a new ultra-fast grocery delivery service with an expected delivery time of 10-15 minutes. The first ultra-fast delivery service will be offered from a new DashMart location in Chelsea, and the company expects to start offering the service from several other locations over the next few months.
DoorDash offers an online food ordering and delivery platform that supports several local businesses. Following the news, shares rose 2.5% to close at $161.54 on December 6.
DashMart offers a wide variety of both fresh and frozen grocery items, and the new service will help customers to fill up their last-minute grocery needs just in time. Not just that, DashMart also allows local businesses and eatery joints to reach their customers online through its delivery services.
As of today, DashMart boasts of serving nearly 400 local and regional producers/retailers by helping them reach their customers and increase sales.
The service started on December 6. Customers living nearby the delivery zone can place orders for DashMart via the DoorDash app or website. Customers with DashPass will have a $0 delivery fee and subsidized service fees on their orders.
Other customers can use a code to avail themselves of a one-time $15 discount on their first orders. Meanwhile, DoorDash will donate the excess DashMart produce to Chelsea Community Fridge & Cupboard.
Another benefit of the service launch will be the employment generated for many couriers who are looking for a full-time job with regular earnings. DoorDash will employ couriers through its company DashCorps to ensure smooth and ultra-fast delivery of orders.
The couriers will have a regular schedule, be actively managed, and use the new app designed especially for this work including job responsibilities beyond delivery.
Additionally, couriers will also get traditional employment benefits like hourly earnings and health insurance.
President of DoorDash, Christopher Payne, said, “As the largest and most reliable logistics network in the US, DoorDash is positioned to enter this emerging industry and provide consistent quality, speed, and convenience that customers know and trust. Many New Yorkers already turn to DoorDash for their next meal or essentials purchases, which puts us in an exciting place to deliver on the promise of ultra-fast delivery.”
Payne concluded, “Consumers increasingly expect an effortless, enjoyable experience, so while we are starting with DashMarts, our goal is to expand this offering to select grocery and convenience partners.”
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Overall, the DASH stock has a Moderate Buy consensus rating based on 10 Buys and 9 Holds. The average DoorDash price target of $238.89 implies 47.88% upside potential to current levels. Shares have gained 16% over the past year.
TipRanks’ Website Traffic tool, which uses data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, offers insight into DASH’s performance.
In October, DoorDash website traffic recorded a 9.45% year-over-year decline in monthly visits. However, year-to-date website traffic growth increased by 27.94% compared to the same period last year.
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