drone pilot industryDollar General (DG) Partners With DoorDash to Boost Deliveries

November 12, 2021by helo-10

Technological advancements have radically transformed consumers’ shopping practices. With prudent omni-channel offerings and swift delivery systems, retailers are offerings various options that suit consumers’ lifestyle and convenience. Renowned discount retailer — Dollar General Corporation DG — has been undertaking prudent initiatives to boost its delivery game. In the latest developments, the company announced a partnership with DoorDash, Inc. DASH — a leading last-mile logistics platform — to offer on-demand delivery of household essentials. Let’s delve deeper.

Strong Delivery Services are Key to Growth

Consumers’ preference for online deliveries have increased, especially amid the pandemic. Retailers are making most of this trend by broadening their online presence and boosting collaborations with logistics service providers. Dollar General has long been striving to make shopping hassle free for consumers. The company’s collaboration with DoorDash reflects on this effort.

DoorDash has teamed up with many retail biggies to offer prudent delivery services and make their products more accessible. The company’s swift and flexible logistics operating model enables offering consumers with on-demand access to e-commerce. Apart from these, the company provides expertise on customer acquisition, delivery, insights and analytics, merchandising, payment processing as well as customer support.

Dollar General and DoorDash initially ran a pilot program in summer 2021, with approximately 600 stores in rural and metropolitan communities. On-demand delivery from DoorDash is currently available from more than 9,000 Dollar General stores, with plans to expand to more than 10,000 locations by December 2021.

The partnership is likely to enable Dollar General to provide convenient and contactless delivery options. With DoorDash’s prudent delivery platform, Dollar General will be able to offer on-demand delivery for a range of essential household items, including food, snacks, cleaning supplies and more. Consumers will be able to browse and order products for same-day delivery through DoorDash’s marketplace app or website with no time slot or minimum order size required. The delivery is made within an hour, on average. The products will be provided at everyday low prices, an aspect for which Dollar General is renowned. The partnership is likely to boost same-day delivery in remote areas as well.  

To commemorate the partnership, Dollar General is providing attractive discounts that will last till Nov 24, 2021.  Customers can get a 30% off on their first Dollar General order, where the subtotal is $20 or greater, with code DOLLAR (up to a total of $20 off).

Speaking of delivery-related efforts, Dollar General is on track to expand its DG Pickup initiative. Management is also progressing well with the DG Fresh initiative — designed to enable self-distribution of fresh and frozen products. The company completed the initial rollout of DG Fresh across the entire chain and are now delivering to more than 17,500 stores from 12 facilities. Additionally, the company is expanding its non-consumables delivery across stores.

The company’s robust efforts to strengthen delivery and pickup services along with sturdy store and online offerings are likely to keep supporting its performance. Such efforts are likely to boost investors’ confidence in the stock, which has otherwise been battered by moderating consumption rates as well as rising transportation costs stemming from port delays.

This Zacks Rank #4 (Hold) stock has declined 6.4% in the past three months compared with the industry’s rise of 2.1%.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Image Source: Zacks Investment Research

Other Retailers Ramping up Delivery Game

From startups to giants, several companies are making radical moves in delivery systems. Well-known supermarket chain — The Kroger Co.’s KR — collaborated with Instacart to offer the ‘Kroger Delivery Now’ service, which provides customers with food and household staples in 30 minutes. The company, in partnership with Instacart, is also offering two-hour grocery delivery.

Kroger is focused on no-contact delivery option, low-contact pickup service and ship-to-home orders. Such efforts are driving the company’s e-commerce sales. Shares of this Zacks Rank #2 (Buy) company have increased 14.8% in the past six months compared with the industry’s rise of 7.8%. KR has a long-term earnings growth rate of 10.4%.

Supermarket behemoth Walmart Inc. WMT is acclaimed for its notable strides to ramp up deliveries. The company holds alliance with DoorDash and Instacart. Its Express Delivery solutions helps fulfilling orders in less than two hours. Other prudent investments made by the company to bolster its delivery arm include HomeValet, the introduction of Carrier Pickup by FedEx and the launch of Walmart+ membership program among others.

Walmart is also venturing into self-driving cars to expand last-mile delivery ecosystem. It has been exploring opportunities in drone delivery and invested in DroneUp. Shares of this Zacks Rank #3 (Hold) company have increased 7.4% in the past six months compared with the industry’s rise of 7.8%. WMT has a long-term earnings growth rate of 5.5%.

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If you had put $5,000 into XPEV at its IPO in September 2020, you could have cashed out with $19,970 in November.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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