fbpx
PaymentsJournal
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • COVID-19
  • News
  • Events
No Result
View All Result
PaymentsJournal
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • COVID-19
  • News
  • Events
No Result
View All Result
PaymentsJournal
No Result
View All Result

DoorDash Driving Online Delivery Beyond Restaurants

Raymond Pucci by Raymond Pucci
February 1, 2021
in Analysts Coverage, Contactless, Customer Experience, E-commerce
0
More Customers Find DoorDash Subscription Plan Quite Appetizing

More Customers Find DoorDash Subscription Plan Quite Appetizing

0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

Meal delivery had already become table stakes for all restaurants, big and small, chains and independents. Then in 2020, the pandemic-driven stay-at-home lifestyle created a surge in consumer online ordering and food delivery. Competition among third party delivery companies became intense in the battle for market share with DoorDash grabbing the lion’s share. But free offers and discounting has taken its toll on profitability and there has been significant consolidation among meal delivery firms.

So it’s no surprise to see DoorDash leveraging its delivery infrastructure into adjacent verticals such as C-stores and pharmacies. Other verticals will follow. Still, headwinds are lurking for the delivery firms, including regulatory issues and pushback from restaurants on fees. Mercator covered these issues in a January 2021 Viewpoint Third-Party Delivery Firms Form Necessary but Uneasy Alliances with Merchants.

The following excerpt from a Wall St. Journal article reports more on the topic:

Food-delivery platform DoorDash  is now trading nearly 90% above its initial public offering price just as vaccines are being broadly distributed in the U.S. and restaurants in some of its largest markets are poised to reopen outdoor dining. So why isn’t this stock a screaming short?

The answer may be more about convenience than taste. In addition to restaurant delivery, DoorDash has been building up its market share in third-party delivery for other goods, such as those from the likes of 7-Eleven, Wawa, Circle K and CVS. Post-pandemic, those ancillary opportunities could prove to be more central to DoorDash’s growth thesis than bearish investors are appreciating.

In his DoorDash initiation report, JPMorgan’s Doug Anmuth calls food delivery a “forever changed category,” noting that while growth may slow, activity will remain elevated, given consumers’ value of convenience and selection. He cites new verticals, such as convenience, grocery and pharmacy, as key growth drivers.

Overview by Raymond Pucci, Director, Merchant Services at Mercator Advisory Group

Tags: Contactlesscustomer experienceDeliverye-commerceFood Deliveryonline shoppingrestaurants
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

    Analyst Coverage, Payments Data, and News Delivered Daily
    Sign up for the PaymentsJournal Newsletter to get exclusive insight and data from Mercator Advisory Group analysts and industry professionals.

    Must Reads

    Payments in 2021 and Beyond: Innovating in the New Normal and Why You Should Care about Security

    Payments in 2021 and Beyond: Innovating in the New Normal and Why You Should Care about Security

    February 25, 2021
    Why Pix is the revolution of consumer experience in Brazil

    Why Pix is the Revolution of Consumer Experience in Brazil

    February 24, 2021
    Why Are We Seeing a Fintech App Every Day?

    Why Are We Seeing a Fintech App Every Day?

    February 23, 2021
    Think Big: Understanding How Digital Payments Can Transform Claim Experiences

    Think Big: Understanding How Digital Payments Can Transform Claim Experiences

    February 22, 2021
    Fintech Automation Will Only Increase in 2021

    Fintech Automation Will Only Increase in 2021

    February 19, 2021
    Cryptocurrency Exchange Compliances Pose Challenges for Decision Makers

    Cryptocurrency Exchange Regulations Pose Challenges for Decision Makers

    February 18, 2021
    Record ACH Payment Growth in 2020 to 26.8 Billion Payments

    Record ACH Payment Growth in 2020 to 26.8 Billion Payments

    February 17, 2021
    PSCU Reports Weekly Credit vs Debit Payment Trends Throughout the Pandemic

    PSCU Reports Weekly Credit vs Debit Payment Trends Throughout the Pandemic

    February 16, 2021

    Connect With Us

    • Advertise With Us
    • About Us
    • Terms of Use
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    • Industry Opinions
    • COVID-19
    • News
    • Events

    © 2021 PaymentsJournal.com

    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Industry Opinions
    • Faster Payments
    • News
    • Jobs
    • Events
    No Result
    View All Result