Sep 9, 2020 - Economy

DoorDash learns how to play fetch with new PetSmart partnership

mug of petsmart building

Similarly to food and groceries, pet food and other items are necessary and recurring purchases for pet owners. Photo: Lynne Gilbert/Getty Images

DoorDash is branching out from food and grocery delivery with a new partnership with PetSmart to provide same-day delivery in more than 1,400 stores.

Why it matters: DoorDash is reportedly gearing up to go public soon (it confidentially filed with regulators for an IPO in February). Expanding its business could broaden the company's appeal to investors.

Background: DoorDash is far from the first company to turn to non-food retail in search of additional revenue streams.

  • Uber provided delivery services to retailers and merchants for a few years before shuttering its UberEverything business, while Postmates has inked a number of deals with the likes of Apple’s stores.
  • DoorDash itself has a bit of experience with delivering drugstore items via its partnerships with Walgreens and Walmart, and delivering flowers through its delivery service for businesses.

Between the lines: Despite food delivery's boom during the current pandemic as Americans stay home much more, it's probably wise for a company like DoorDash to expand into additional categories.

  • Similarly to food and groceries, pet food and other items are necessary and recurring purchases for pet owners.

Go deeper: DoorDash CEO Tony Xu on the employee vs. contractor debate

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