Tuesday's Market Minute: Delivery Is The Future

Even as vaccination rates rise in the U.S. and lockdowns lift, more companies are investing into delivery services. DoorDash (NYSE: DASH) announced partnerships with PetSmart (NASDAQ: PTESM) and the grocery chain Albertsons (NYSE: ACI) in the last few days. Uber said yesterday it will acquire the remaining stake in the grocery delivery start-up Cornershop in an all-stock transaction.

Both companies are under pressure to show a path to profitability; both have reported a loss per share each quarter. Uber (NYSE: UBER), especially during the pandemic, has seen more benefit from food delivery than ridesharing, so pivoting that way and expanding into groceries makes sense. But while there are already multiple same-day grocery delivery companies, that niche is open in more specific, though still-large chains like PetSmart.

If DoorDash’s partnership proves to be a success, will more companies follow? And how far will same-day delivery services expand in the next few years as Americans grow used to convenience?

Image by Irenephoto from Pixabay