DoorDash (NASDAQ:DASH) has witnessed a robust 22% increase in its shares over the past six months, outperforming the Zacks Computer & Technology sector’s 7.4% rise. This upward trend is attributed to strong total orders and the positive performance of Marketplace Gross Order Value (GOV).
The company experienced a noteworthy 24% year-over-year increase in total orders, reaching $543 million, while Marketplace GOV also surged by 24% to $16.8 billion. In the third quarter of 2023, DoorDash reported revenues of $2.2 billion, reflecting a 27% year-over-year growth. This growth is credited to a robust portfolio, enhanced logistics efficiency, and a growing contribution from advertising.
DoorDash is strategically broadening its horizons by welcoming dynamic retail partners to its Marketplace, catering to the diverse needs of consumers engaged in active and wellness pursuits. As the premier marketplace in North America, DoorDash boasts over 100,000 non-restaurant stores on its Marketplace and Drive platforms, offering nearly 2 million products ranging from clothing and makeup to household essentials.
The recent additions to DoorDash’s retail family include notable names like Camping World, a leading RV and outdoor recreation retailer; Golf Galaxy, a prominent golf specialty store; JD Sports and Finish Line, global icons in sports fashion; and The Vitamin Shoppe, a trusted destination for health and wellness solutions.
These additions aim to provide consumers with seamless access to a wide variety of products, reinforcing DoorDash’s commitment to meeting the evolving daily needs of its diverse user base. To celebrate these partnerships, the company is offering a 20% discount on eligible orders of $30 or more through January 31, using the promo code NEWYOU20 at participating locations. Additionally, these retail partners will be accessible through DashPass, DoorDash’s membership program, offering exclusive benefits to members.
DoorDash’s strategic move aligns with its ongoing portfolio expansion, integrating retail giants and diversifying its marketplace offerings beyond restaurants. This enables consumers to access a diverse array of products. Notably, the company expanded its partnership with Best Buy to offer on-demand delivery of consumer electronics. It also collaborated with Gus’ Community Market and New Leaf Community Markets to enhance its on-demand grocery delivery services in Northern California.
Moreover, DoorDash entered a collaboration with ALDI, expanding its delivery services to over 1,200 locations, and ensuring age-verified access to alcohol delivery for approximately 80% of its customers.
The company’s strong portfolio and partner base continue to contribute to its growth prospects, reflecting positively on its top-line performance. DoorDash anticipates Marketplace GOV to range between $17 billion and $17.4 billion for the fourth quarter of 2023, with the Zacks Consensus Estimate for Q4 2023 revenues pegged at $2.24 billion, indicating a significant 23.44% year-over-year growth.
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