DoorDash share bounce on Loblaw deal

Shares in DoorDash were up 20 per cent to $74.11; shares in Benson Hill were down seven per cent to $3.31 while shares in AppHarvest were up 25 per cent to $3.92.

Shares in DoorDash were up 20 per cent to $74.11 in the week ending June 24 according to the Future Food Finance FoodTech Index.

The uplift in DoorDash’s shares came in the week it struck an exclusive deal to build warehouses for Canada’s biggest grocery chain.

The move by the US delivery firm heightens competition with rival Instacart, which had previously been an excessive partner to Loblaw, and will mean customers in Canada can aspect groceries delivered to them in 30 minutes or less.

Called  PC Express Rapid Delivery, the new Loblaw service will start DoorDash’s Rapid Delivery programme from purpose-built fulfillment centres, supplied by the Canadian food and drug retailer and owned and operated by DoorDash. 

DoorDash said that PC Express Rapid Delivery — incorporating Loblaw's "PC Express" e-grocery brand — is set to launch in August and roll out to major Canadian markets, including Vancouver, British Columbia and the greater Toronto.

The agreement marks the first of its kind for DoorDash, the US market leader in restaurant delivery, as it seeks to expand its speedy delivery services into new areas.

Our goal is to bring convenience to customers in Canada, with the selection and speed they want,” according to Shilpa Arora, general manager of DoorDash Canada, based in Vancouver. 

“Through this collaboration with Loblaw, we are addressing consumers’ need to ‘get it now,’ in addition to our existing Marketplace and Drive channels and furthering the value we bring to consumers and partners alike.”

“Customers have come to expect the very best online grocery shopping experience from us, whether they choose curbside pickup or delivery to their door,” Lauren Steinberg, senior vice president of Loblaw Digital at Mississauga, Ontario-based Loblaw, said in a statement.

“Collaborating with DoorDash on rapid delivery services enables us to enhance our already existing PC Express offering by adding 30-minutes-or-less delivery to meet customers' growing interest in on-demand delivery options.”

Elsewhere, shares in Benson Hill were down seven per cent to $3.31 while shares in AppHarvest were up 25 per cent to $3.92.