DoorDash Releases New Research That Demonstrates How Delivery Breaks Down Barriers and Helps SNAP Consumers Access Groceries

Rhea-AI Summary

DoorDash (DASH) has released an independent survey titled 'How Online Grocery Delivery with SNAP Broadens Food Access Across the U.S.', highlighting the benefits of grocery delivery for SNAP recipients. Key findings include:

- 78% of SNAP recipients prefer using benefits for grocery delivery over in-store shopping
- 45% face transportation difficulties, 40% have busy work schedules, and 34% have caregiving responsibilities
- 93% say online grocery shopping saves time for other activities
- 61% feel self-conscious using SNAP benefits in-store, with 81% of those saying delivery reduces stigma
- 74% report buying more fruits and vegetables without increasing overall grocery spending

DoorDash also announced the expansion of SNAP/EBT payment capabilities to new merchants nationwide, including Cub, DashMart, Food Maxx, and others. Over 1.8 million consumers have added SNAP/EBT cards to DoorDash since its launch a year ago.

Positive

• Expansion of SNAP/EBT payment capabilities to new merchants nationwide
• Over 1.8 million consumers have added SNAP/EBT cards to DoorDash in one year
• DoorDash now has more than 15,000 stores available for on-demand delivery with SNAP/EBT payments

Negative

• None.

Insights

Market Research Analyst

DoorDash's expansion of SNAP/EBT payment capabilities is a strategic move to tap into a significant market segment. With 1.8 million consumers adding SNAP/EBT cards to DoorDash in just one year, this represents a substantial user base growth. The survey results highlight a strong preference (78%) for using SNAP benefits for grocery delivery, indicating a shift in consumer behavior that DoorDash is well-positioned to capitalize on.

The expansion to over 15,000 stores for on-demand delivery with SNAP/EBT payments significantly increases DoorDash's market reach. This move not only addresses accessibility issues for SNAP recipients but also potentially increases order frequency and basket sizes, as 74% of consumers report buying more fruits and vegetables without increasing overall grocery spend.

From an investor perspective, this initiative could lead to increased revenue streams, improved customer retention and a stronger competitive position in the grocery delivery market. However, it's important to monitor the impact on profit margins, as SNAP transactions may have different economics compared to standard orders.

Social Impact Analyst

DoorDash's expansion of SNAP/EBT capabilities demonstrates a commitment to social responsibility and inclusive business practices. By addressing barriers such as transportation difficulties (45% of surveyed users), busy schedules (40%) and caregiving responsibilities (34%), DoorDash is effectively broadening food access for vulnerable populations.

The reduction of stigma associated with using SNAP benefits is particularly noteworthy. With 61% of surveyed consumers feeling self-conscious about using SNAP in-store and 81% of those reporting that grocery delivery helps alleviate this issue, DoorDash is addressing an important social concern.

This initiative aligns with growing investor interest in ESG (Environmental, Social and Governance) factors. By demonstrating a positive social impact, DoorDash may attract socially conscious investors and potentially benefit from improved brand perception. However, the long-term financial implications of this social impact strategy should be closely monitored to ensure it aligns with shareholder interests.

Adds SNAP/EBT Payment Capabilities to New Merchants Nationwide

SAN FRANCISCO--(BUSINESS WIRE)-- Today, DoorDash announced the release of an independent survey of SNAP consumers titled How Online Grocery Delivery with SNAP Broadens Food Access Across the U.S., which demonstrates that grocery delivery increases access to nutritious food, saves valuable time, and makes it easier for consumers to purchase affordable meals. DoorDash also announced SNAP/EBT availability with new merchants nationwide accepting SNAP/EBT on the DoorDash platform. Since launching SNAP on the DoorDash platform just one year ago, more than 1.8 million consumers have added their SNAP/EBT cards to DoorDash.

(Photo: Business Wire)

Accessibility and Time Savings

A full 78% of surveyed SNAP recipients say they prefer to use their benefits for grocery delivery rather than using them in-store.

• Consumers use grocery delivery because they have difficulty accessing transportation to the store (45%), busy work schedules (40%), or caregiving responsibilities (34%) that make it hard to shop in-store.
• Without delivery, one in eight SNAP recipients surveyed would skip making some of their grocery purchases entirely.
• 93% of consumers say online grocery shopping helps them get back time for other activities.

“I do not drive because of my disability and public transportation in my city is challenging. I also got sick recently and my normal trip to the grocery store that often takes a lot of coordination, energy, and time got delayed,” said one consumer. “So, knowing that DoorDash offers [the] use of SNAP benefits helped me tremendously to get food when I had many things running low, in particular healthy, fresh food, i.e. fruits and vegetables. This made my life a lot easier!”

Increased Comfort and Affordability

SNAP recipients also reported that grocery delivery reduced stigma and made accessing affordable fruits and vegetables easier.

• Almost two-thirds of consumers surveyed (61%) say they feel self-conscious about using SNAP benefits in-store, of whom 81% say that grocery delivery helps them feel less self-conscious.
• 74% of consumers say that online shopping helps them buy more fruits and vegetables without spending more on groceries overall.

To help broaden access to groceries for consumers, DoorDash is proud to announce the expansion of our SNAP/EBT payment capabilities for on-demand delivery from Cub, DashMart, Food Maxx, Giant Eagle, Jerry’s County Market, Jerry’s Foods, Lucky California, Market District, Morton Williams, Save Mart, Sheetz, and Shoppers. These merchants join several other grocers and convenience stores that offer SNAP/EBT payment capabilities on DoorDash, including Albertsons, ALDI, Safeway, and Walgreens. DoorDash now has more than 15,000 stores available for on-demand delivery with SNAP/EBT payments on the platform.

"Ending hunger takes us all doing our part. By adding more ways for people who use SNAP to access the groceries they need, DoorDash is breaking down barriers for thousands of people daily. DoorDash's research confirms what we've always known: that solutions like delivery reduce hunger, grow access, and eliminate stigma," said Eric Mitchell, President, Alliance to End Hunger. "We're proud to partner with DoorDash as they continue to broaden food access."

DoorDash (NASDAQ: DASH) is a technology company that connects consumers with their favorite local businesses in more than 30 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240930565211/en/

keith.fernandez@doordash.com

Source: DoorDash

FAQ

What percentage of SNAP recipients prefer using benefits for grocery delivery on DoorDash?

According to the survey, 78% of SNAP recipients prefer using their benefits for grocery delivery rather than using them in-store.

How many consumers have added SNAP/EBT cards to DoorDash since its launch?

More than 1.8 million consumers have added their SNAP/EBT cards to DoorDash since launching SNAP on the platform one year ago.

What new merchants are now accepting SNAP/EBT payments on DoorDash (DASH)?

DoorDash has expanded SNAP/EBT payment capabilities to new merchants including Cub, DashMart, Food Maxx, Giant Eagle, Jerry's County Market, Jerry's Foods, Lucky California, Market District, Morton Williams, Save Mart, Sheetz, and Shoppers.

How does grocery delivery through DoorDash impact fruit and vegetable purchases for SNAP recipients?

74% of SNAP consumers surveyed say that online shopping helps them buy more fruits and vegetables without spending more on groceries overall.