DoorDash Partners with Family Dollar to Attract Low-Income Customers
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 21h ago
0mins
Source: NASDAQ.COM
- Customer Income Analysis: In 2024, one-third of DoorDash's customers had annual household incomes below $50,000, aligning with the overall U.S. population, indicating the company's potential in the low-income market.
- Partnership Strategy: The partnership with Family Dollar allows DoorDash to offer cleaning supplies, groceries, and household essentials from 7,000 stores, aiming to attract price-sensitive consumers by providing more competitively priced options.
- Market Trends: In 2024, Americans spent $1.5 trillion on food consumed away from home and $1.1 trillion on food at home, highlighting the significance of food delivery services in daily meals, with DoorDash achieving $10.7 billion in revenue from this trend.
- Fee Adjustments: DoorDash reduced fees for non-DashPass customers by 12% in 2024 and introduced a discounted DashPass membership for SNAP/EBT customers, demonstrating the company's efforts to enhance service affordability in response to rising living costs.
Analyst Views on DASH
Wall Street analysts forecast DASH stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DASH is 284.46 USD with a low forecast of 205.00 USD and a high forecast of 360.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
30 Analyst Rating
24 Buy
6 Hold
0 Sell
Strong Buy
Current: 215.560
Low
205.00
Averages
284.46
High
360.00
Current: 215.560
Low
205.00
Averages
284.46
High
360.00
About DASH
DoorDash, Inc. is engaged in providing services that reduce friction in local commerce and help merchants connect with consumers in their communities. The Company's primary offerings include the DoorDash Marketplace and the Wolt Marketplace (together, the Marketplaces), and its Commerce Platform. The Company's Marketplaces operate in over 30 countries across the globe and provide an integrated suite of services that help merchants establish an online presence, connect with consumers in their communities, and solve mission-critical challenges, such as customer acquisition, demand generation, order fulfillment, merchandising, payment processing, and customer support. It also offers advertising as a value-added service through its Marketplaces to help merchants and consumer packaged goods companies increase consumer engagement. The Company also has offsite advertising capabilities. Its white-label delivery fulfillment services include DoorDash Drive On-Demand and Wolt Drive.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
