Yahoo Finance DoorDash (DASH) Expands SNAP/EBT Payment Offering Nationwide
DoorDash DASH is bolstering its presence in the food accessibility domain, taking significant strides to ensure that millions of consumers can enjoy affordable meals at their convenience.
Through DASH’s latest expansion of the SNAP/EBT payment offering, DoorDash announced its partnership with additional grocers, solidifying its commitment to providing accessible options for dining and grocery needs.
With more than 1.1 million consumers already utilizing SNAP/EBT cards on the platform since its launch in 2023, DoorDash's collaboration with more than a dozen new grocers, including ACME Markets, Hy-Vee and Sprouts Farmers Market, extends its reach to more than 6,000 locations nationwide.
With the expansion, DoorDash aims to cater to over 11 million individuals living in food deserts and more than 30 million residents in communities with significant SNAP/EBT utilization.
DoorDash, Inc. Price and Consensus
DoorDash, Inc. price-consensus-chart | DoorDash, Inc. Quote
Through projects like Project DASH and offers like two free months of DashPass for new customers, DoorDash continues to empower local economies and pave the way for enhanced food accessibility across the country.
DASH’s Robust Portfolio Aids Prospects
DoorDash‘s shares have returned 34.1% in the year-to-date period compared with the Zacks Computer & Technology sector’s rise of 10.8%. The uptick can be attributed to DoorDash's initiative to expand SNAP/EBT payment options and partnerships with additional grocers nationwide.
DoorDash's success is underscored by robust total orders, which have surged by 23% year over year to reach $574 million in fourth-quarter 2023. Marketplace Gross Order Value (GOV) witnessed a significant uptick, up 22% year over year to $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, broadening its marketplace to include over 100,000 non-restaurant stores. The expansion offers consumers on-demand delivery for a diverse array of products catering to active and wellness lifestyles.
In February, DoorDash strengthened its market position further by partnering with Pet Supplies Plus, enabling the on-demand delivery of pet essentials from 720 locations. This move not only enhances convenience for pet parents but also provides DashPass members with added benefits, including $0 delivery fees on all Pet Supplies Plus orders.
Moreover, 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 the first quarter of 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 20.49% 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, Bentley Systems BSY and Cadence Design Systems CDNS, each sporting Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Bill Holdings shares have declined 17.2% in the year-to-date period. BILL’s long-term earnings growth rate is currently projected at 23.64%.
Bentley Systems shares have declined 6.8% in the year-to-date period. BSY's long-term earnings growth rate is currently projected at 12%.
Cadence Design Systems shares have gained 12.5% in the year-to-date period. CDNS’ long-term earnings growth rate is currently projected at 17.07%.
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DoorDash, Inc. (DASH) : Free Stock Analysis Report
