DoorDash and Dollar General Partner to Unlock Unprecedented Food Access for SNAP Customers

Rhea-AI Summary

DoorDash (NASDAQ: DASH) and Dollar General (NYSE: DG) have announced a partnership to enable SNAP/EBT payment capabilities across more than 16,000 Dollar General stores on the DoorDash Marketplace. This expansion nearly doubles DoorDash's SNAP-accepting network to over 35,000 stores.

The collaboration, facilitated by Forage, provides SNAP recipients access to on-demand grocery delivery from Dollar General stores across 48 states. The service covers SNAP-eligible products including fresh and frozen foods, pantry essentials, and snacks.

DoorDash connects 99% of its monthly active U.S. consumers with at least one SNAP-accepting store. The company offers eligible SNAP/EBT recipients a discounted DashPass plan at $4.99/month for one year, providing benefits like $0 delivery fees and reduced service fees on eligible orders.

Positive

• Significant expansion of DoorDash's SNAP-accepting network, nearly doubling to 35,000+ stores
• Partnership covers extensive geographic reach with 75% of U.S. population within 5 miles of service
• Potential revenue growth through access to 2.4 million SNAP/EBT customers on DoorDash
• Strategic expansion into essential services market through SNAP/EBT integration

Negative

• Discounted DashPass offering at $4.99/month may impact short-term revenue per SNAP customer
• Additional operational costs associated with implementing SNAP/EBT payment systems

Insights

Financial Analyst

DoorDash's strategic partnership with Dollar General represents a significant market expansion that could drive meaningful revenue growth. By adding 16,000+ Dollar General stores to their SNAP/EBT-accepting network, DoorDash nearly doubles their coverage to over 35,000 locations, positioning them to capture market share in the underserved SNAP recipient segment.

The partnership opens access to approximately 2.4 million consumers who have added SNAP/EBT cards to DoorDash, creating a substantial new revenue stream. With Dollar General's strategic footprint covering 75% of the US population within a 5-mile radius, this collaboration significantly enhances DoorDash's penetration into rural and lower-income markets where delivery services are often

This move strengthens DoorDash's competitive moat against rivals by addressing both geographic and economic accessibility barriers. The discounted DashPass offering for SNAP recipients ($4.99/month) serves as a brilliant customer acquisition strategy that could drive higher retention and order frequency while generating predictable subscription revenue.

The partnership addresses a genuine market need – nearly 25% of surveyed SNAP recipients using DoorDash cite mobility or health challenges. This positions DoorDash to capture significant share in a market where traditional delivery services have historically underserved value-conscious consumers.

Dollar General now accepts SNAP/EBT payments on the DoorDash Marketplace

SAN FRANCISCO--(BUSINESS WIRE)-- DoorDash (NASDAQ: DASH), the local commerce platform, and Dollar General (NYSE: DG), America’s neighborhood general store, today announced a new offering to bring SNAP/EBT payment capabilities to more than 16,000 of Dollar General’s stores on the DoorDash Marketplace. With the addition of Dollar General, DoorDash’s network of stores that accept SNAP/EBT online payments on the DoorDash Marketplace nearly doubles to over 35,000 stores.

“Dollar General’s mission of Serving Others includes helping customers save time and money everyday. Unlocking the ability for SNAP/EBT recipients to shop online and have groceries delivered straight to their door through DoorDash provides even more accessibility and convenience,” said Tony Rogers, SVP and chief marketing officer at Dollar General. “With approximately 75% of the U.S. located within five miles of a DG store, we are proud to bridge gaps to serve the communities we call home.”

The new collaboration – enabled in partnership with Forage, the mission-driven payments company – brings SNAP recipients unparalleled access to on-demand grocery delivery from Dollar General stores across 48 states. Through this partnership, SNAP-eligible products from Dollar General, including fresh and frozen foods, pantry essentials, snacks, and more are now available for purchase through the DoorDash Marketplace.

“At DoorDash, our commitment to fighting food insecurity remains at the core of our mission, and we continue to prioritize unlocking more on-demand delivery options for the more than 2.4 million consumers who have added their SNAP/EBT card to DoorDash,” said Fuad Hannon, VP of New Verticals at DoorDash. “We’re proud to collaborate with Dollar General to further this commitment, ensuring even more SNAP beneficiaries nationwide can conveniently access fresh, affordable groceries with the dignity and ease they deserve.”

As one of the largest online marketplaces to offer SNAP/EBT recipients access to grocery delivery across the country, DoorDash connects 99% of its monthly active consumers in the U.S. with at least one store accepting SNAP on the Marketplace. According to DoorDash’s survey How Online Grocery Delivery with SNAP Broadens Food Access Across the U.S., almost one in four SNAP recipients surveyed use DoorDash for grocery orders due to health or mobility challenges that make in-person shopping difficult. Whether it's a senior citizen unable to lift heavy bags or someone struggling to get to the store, DoorDash helps ensure that SNAP recipients can order fresh, healthy food regardless of their circumstances.

To further the commitment to reduce hunger nationwide, DoorDash offers a one-year discounted DashPass plan for SNAP/EBT recipients. Eligible consumers who sign up for the plan can enjoy one year of DashPass benefits – like $0 delivery fees and reduced service fees on eligible orders, exclusive offers, and more – for just $4.99/month.*

*DoorDash customers that have placed an order on DoorDash in the past 6 months using a valid SNAP/EBT card are eligible to sign up to the DashPass SNAP Plan. The DashPass SNAP Plan is a discounted monthly DashPass subscription plan for 12 months ($4.99 per month plus applicable taxes). At the conclusion of the 12 months, subscribers of the DashPass SNAP Plan will be automatically enrolled in a monthly DashPass subscription and charged the then current monthly subscription fee for DashPass (currently $9.99 per month plus applicable taxes). See full SNAP plans terms here and cancellation instructions here.

DashPass benefits apply only to eligible orders from DashPass merchants that meet the minimum subtotal requirement, excluding fees and taxes. Subtotal minimums will be identified on DoorDash for each DashPass eligible merchant. Other fees (including service fee), taxes, and gratuity still apply.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250318248636/en/

press@doordash.com

Source: DoorDash

FAQ

How many Dollar General stores now accept SNAP/EBT payments through DoorDash (DASH)?

Over 16,000 Dollar General stores now accept SNAP/EBT payments through the DoorDash Marketplace.

What is the coverage of Dollar General stores in the DoorDash SNAP partnership?

Approximately 75% of the U.S. population is located within five miles of a Dollar General store, across 48 states.

What special benefits does DoorDash offer to SNAP/EBT recipients?

SNAP/EBT recipients can get a discounted DashPass plan for $4.99/month for one year, including $0 delivery fees and reduced service fees on eligible orders.

How many stores in total now accept SNAP/EBT payments on DoorDash's platform?

With the Dollar General partnership, DoorDash's network of SNAP/EBT accepting stores has nearly doubled to over 35,000 stores.