DoorDash Expands Food Access for SNAP Customers With New Grocery Partners

Rhea-AI Summary

DoorDash (DASH) expands its SNAP/EBT payment offering with over a dozen new grocers, providing access to fresh food for more consumers. The addition of these partners across 6,000 locations nationwide enhances food accessibility for SNAP/EBT recipients.

Insights

Market Research Analyst

Expanding the SNAP/EBT payment system to include on-demand grocery delivery through DoorDash represents a significant shift in the grocery retail sector. This move taps into a previously underleveraged market segment consisting of SNAP/EBT beneficiaries. By integrating with over a dozen new grocers, DoorDash is not only increasing its user base but also enhancing customer loyalty and potentially increasing the frequency of orders. The strategic partnership with 6,000 locations nationwide could lead to a positive impact on DoorDash's revenue streams, as it diversifies its service offerings and caters to a broader demographic.

The grocery delivery market is highly competitive and DoorDash's initiative could set a precedent for other market players to follow. The company's approach aligns with a growing trend of social responsibility in business, which could enhance its brand image and attract socially conscious investors. It is also noteworthy that by addressing food deserts and communities with high SNAP/EBT usage, DoorDash is positioning itself as a leader in social innovation within the industry.

Financial Analyst

DoorDash's announcement is likely to be closely monitored by investors as it signals an expansion of services that could translate into increased market share and revenue growth. The integration of SNAP/EBT payments is not just a socially responsible move but also a strategic business decision that could lead to a more stable and diversified customer base. By targeting the 11 million people living in food deserts and the 30 million in high SNAP/EBT usage communities, DoorDash is tapping into a new customer segment that could provide a steady stream of transactions, given the recurring nature of grocery shopping.

Furthermore, investors will be keen on monitoring user adoption rates following the expansion. The reported 1.1 million consumers who have added their SNAP/EBT cards to DoorDash since the initial launch in 2023 could be indicative of a strong market demand. The long-term success of this initiative will depend on the consistent execution of delivery services and the ability to maintain affordable pricing while managing operational costs effectively.

Economist

The expansion of SNAP/EBT payment options for on-demand grocery delivery services can have broader economic implications. By increasing access to fresh food for SNAP beneficiaries, there is potential for improved nutritional outcomes and reduced health disparities in underserved communities. This could lead to long-term savings in public health expenditures and increased productivity among the population.

Moreover, the move by DoorDash may stimulate economic activity in food deserts by increasing demand for local produce and groceries. This increased demand could potentially support local economies and create job opportunities in both the retail and delivery sectors. However, it is important to consider the economic dynamics of adding delivery costs to SNAP purchases and how that might affect overall spending patterns within this demographic.

Adds Over a Dozen New Grocers with 6,000 Locations Nationwide for On-Demand Grocery Delivery With SNAP/EBT Payments on DoorDash

SAN FRANCISCO--(BUSINESS WIRE)-- Every day, millions of consumers look for affordable ways to set the table with their favorite dishes. Today, DoorDash (NASDAQ: DASH), the local commerce platform, is proud to expand its SNAP/EBT payment offering with additional grocers to make fresh food accessible to more people. Since launching support for SNAP/EBT payments in 2023, over 1.1 million consumers have added their SNAP/EBT cards to DoorDash. Consumers can order SNAP-eligible groceries using their SNAP benefits through our platform from over a dozen new grocers across the country. With the addition of these new partners, over 6,000 locations nationwide will support SNAP/EBT payment capabilities on DoorDash for on-demand delivery of eligible grocery items.

DoorDash Expands Food Access for SNAP Customers With New Grocery Partners (Photo: Business Wire)

ACME Markets, Food City, Hy-Vee, Jewel-Osco, Kings Food Markets, Pavilions, Randalls, Shaw’s, Sprouts Farmers Market, Star Market, Stater Bros. Markets, Tom Thumb, and Vons will offer eligible consumers more choices to leverage their SNAP/EBT benefits when ordering online groceries from coast to coast. Consumers can purchase locally-grown produce, prime cut meats, the freshest fish, imported cheeses, international products, a wide selection of natural and organic foods, including bulk foods and more at affordable prices. DoorDash is one of the largest online marketplaces to offer SNAP/EBT recipients access to grocery delivery across the country.

We are proud to continue to broaden food access by offering SNAP/EBT to more than 11 million people who are living in food deserts, and over 30 million people living in communities where over 1 in 10 households receive SNAP/EBT benefits, according to data compiled by DoorDash. Since our launch last year with multiple grocery partners including ALDI, Albertsons, Safeway, Meijer, and participating 7-Eleven® stores:

• Over 1 in 6 SNAP deliveries on DoorDash have been made to consumers living in food deserts;
• 49% of SNAP deliveries on DoorDash have been made to consumers living in low-income communities;
• 28% of SNAP deliveries on DoorDash have been made to consumers living in census tracts with a higher rate of seniors than the national average (16%); and
• 47% of SNAP deliveries on DoorDash have been made to consumers living in census tracts with higher rates of people with disabilities than the national average (12.7%).

DoorDash’s mission has been to empower local economies. We’re proud that we’ve largely fulfilled our commitment as part of the White House Conference on Hunger, Nutrition, and Health and provide on-demand delivery of SNAP-eligible groceries to people across all 50 states and DC.

DoorDash’s work to broaden food access is also undergirded by Project DASH, our initiative to empower social impact organizations—such as food banks and pantries—to work with Dashers and use DoorDash technology to provide local delivery to their communities. Since 2018, Project DASH has powered more than 5 million deliveries of an estimated 80 million meals.

To offer even more savings to consumers, we’re excited to extend our two free months of DashPass offer to new DoorDash customers when they upload their SNAP/EBT card*. DashPass members can access thousands of restaurants, grocery and convenience stores at affordable prices, with $0 delivery fees and reduced service fees on eligible orders. DashPass members save $5 per eligible order on average.

Whether it's delivering SNAP-eligible groceries or charitable food to people experiencing food insecurity, we’re excited to continue to provide new ways for everyone to access food through DoorDash. In addition to SNAP, we have numerous cost-effective options to help consumers save on their next order – learn more here.

ABOUT DOORDASH

DoorDash (NASDAQ: DASH) is a technology company that connects consumers with their favorite local businesses in more than 25 countries across the globe. Founded in 2013, DoorDash builds products and services to help businesses innovate, grow, and reach more customers. DoorDash is your door to more: the local commerce platform dedicated to enabling merchants to thrive in the convenience economy, giving consumers access to more of their communities, and providing work that empowers.

*TERMS AND CONDITIONS

*New DashPass users only. Valid for 60 days from day on which free trial is initiated. Free trial offer is valid until 12/31/2024. AFTER DASHPASS TRIAL PERIOD ENDS, YOU WILL AUTOMATICALLY BE CHARGED $9.99/MONTH OR $96/YEAR, PLUS ANY APPLICABLE TAXES, ON A RECURRING BASIS (BASED ON THE PLAN YOU SELECT). DashPass benefits apply only on eligible orders from DashPass merchants that meet the minimum subtotal requirement, excluding fees and taxes. Subtotal minimums will be identified for each DashPass merchant on DoorDash. Other fees (including service fee), taxes, and gratuity still apply. See DashPass terms here and cancellation instructions here. See full offer terms and conditions at https://drd.sh/8ONpZP/.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240313902305/en/

press@doordash.com

Source: DoorDash

FAQ

Which grocers have partnered with DoorDash (DASH) to offer SNAP/EBT payment capabilities?

ACME Markets, Food City, Hy-Vee, Jewel-Osco, Kings Food Markets, Pavilions, Randalls, Shaw’s, Sprouts Farmers Market, Star Market, Stater Bros. Markets, Tom Thumb, and Vons.

How many consumers have added their SNAP/EBT cards to DoorDash (DASH) since the launch of the program?

Over 1.1 million consumers.

How many locations nationwide will support SNAP/EBT payment capabilities on DoorDash (DASH) for on-demand grocery delivery?

Over 6,000 locations.

What types of groceries can consumers purchase using SNAP benefits on DoorDash (DASH)?

Locally-grown produce, prime cut meats, fresh fish, imported cheeses, international products, natural and organic foods, bulk foods, and more at affordable prices.

How many people living in food deserts can benefit from DoorDash's (DASH) SNAP/EBT offering?

More than 11 million people.