DoorDash (DASH) and Albertsons Companies (ACI) have joined forces to enable on-demand grocery delivery. The new offering is in response to changing consumer tastes and shopping patterns that have seen most of them resort to services that offer home delivery.
Consumers will now be able to place grocery orders from Albertsons banner stores and have them delivered in an hour. Orders will take place through DoorDash's marketplace app.
Albertsons is to offer over 40,000 grocery items as part of the on-demand grocery delivery service. Some of the items on offer include prepared and fresh food in addition to core groceries. (See DoorDash stock chart on TipRanks)
"We are thrilled to partner with Albertsons, one of the largest food and drug retailers in the world, as they expand their already strong local footprint beyond their four walls to offer consumers convenient access to on-demand grocery delivery," said DoorDash Head of New Verticals, Fuad Hannon.
The on-demand grocery service is to be expanded to meet growing consumer demand while making shopping much easier. The strategic partnership also includes the expansion of Albertsons' first-party grocery delivery service. (See Albertsons stock chart on TipRanks)
Additionally, DoorDash and Albertsons are offering a gaming experience whereby customers stand to play and score savings on grocery orders. 'In the Bag' is the new video game from which customers stand to win up to $5,000 in credits towards purchases on DoorDash.
RBC Capital analyst Brad Erickson believes DoorDash has a differentiated strategy that has elevated it into a top-tier U.S restaurant delivery service. The analyst has since reiterated a Buy rating on the stock with a $175 price target implying 1.03% upside potential to current levels.
Consensus among analysts is a Moderate Buy based on 5 Buys and 7 Holds. The average DoorDash analyst price target of $168.67 implies 2.62% downside potential to current levels.