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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