DoorDash Enables Alcohol Delivery in 20 States in U.S.

DoorDash (DASH) has expanded its market offering and added new earning opportunities for merchants and Dashers on its platform. The technology company has added support for beer, wine and spirits delivery across 20 states in the U.S. and the District of Columbia. The company will also enable alcohol delivery in Canada and Australia. Shares of DASH fell 1.16% to close at $220.32 on Monday.

DoorDash is a technology company that operates a food delivery platform, which connects merchants and consumers in more than 4,000 cities in the U.S., Japan, Canada and Australia.

Customers in select markets can access the alcohol tab on the DoorDash app and safely order a wide selection of drinks from restaurants, grocery stores and local retailers. DoorDash is enabling doorstep delivery as it seeks to reach over 100 million customers worldwide.

The company has already established an alcohol catalog, which comprises 30,000 SKUs that customers can access across thousands of retailers and restaurants. Furthermore, the recent unveiling of DoubleDash means customers in select markets can now buy alcohol, along with restaurant meals on some orders. (See DoorDash stock charts on TipRanks)

“We’re committed to providing new earning opportunities for merchants and Dashers, a safe, high-quality experience for customers, and being a responsible leader in compliant alcohol delivery,” said the Director of Alcohol Strategy & Operations at DoorDash, Caitlin Macnamara.

DoorDash’s push to add support for alcohol delivery is likely to increase restaurants and grocers’ average order values as alcohol is one of the fastest-growing Ecommerce verticals.

On September 20, Wells Fargo analyst Brian Fitzgerald reiterated a Buy rating on the stock with a price target of $235, implying 6.66% upside potential to current levels. The analyst expects the company to report a loss of $0.30 in the third quarter.

Consensus among analysts is a Moderate Buy based on 11 Buys and 4 Holds. The average DoorDash price target of $206.83 implies 6.12% downside potential to current levels.