DoorDash Reaches Deals to Sell More Shoes and Clothing

Dow Jones
Yesterday

DoorDash is betting big that Americans want more than dinner delivered.

A dress from Anthropologie. A North Face puffer vest. Face cream from Macy's.

On Wednesday, the app known for delivering meals from pizza to lo mein said it was adding more clothing, shoes and other items to its lineup. Its new partners include Timberland and Vans, in addition to Anthropologie, Macy's and the North Face.

The deals add to a string of new partnerships in recent months for DoorDash, Uber and other delivery apps, intensifying the competition among the companies-and with Amazon.com and Walmart-to satisfy Americans' growing hunger to get their purchases right away.

"Five- to seven-day shipping might have been acceptable five years ago. That is not the case today," said Fuad Hannon, DoorDash's vice president of new verticals.

Consumers' expectations were set by firms like Amazon and Walmart that have offered faster and faster delivery in recent years.

Fast, often free shipping is "now the floor-not the ceiling-for every category of retail," said Marc Iampieri, a leader of logistics and transportation at AlixPartners, a consulting firm.

Retailers risk the loyalty of their shoppers when they don't meet such expectations, he said. To satisfy the demand, many department stores and specialty-apparel retailers seeking to boost sales are finding partners to deliver their goods.

"Hopefully, I'm going to reach a broader audience and a different customer base," said Max Magni, chief customer and digital officer at Macy's. Under its deal with DoorDash, the retailer will offer two-hour delivery from about 360 stores this fall. Macy's has around 430 locations.

Macy's, which had subtly offered DoorDash delivery within its own website and app for a few years, now will make its products available for purchase within DoorDash directly and make fast-delivery a more prominent option on its own website, Magni said.

San Francisco-based DoorDash had for years mostly marketed itself as a restaurant-delivery service, competing with rivals such as Grubhub and Uber. Retailers weren't sure whether customers would gravitate to their products such as clothes or hardware supplies through the app, DoorDash's Hannon said.

Now more shoppers crave delivery within hours and are willing to pay extra for the speed. About 13% of 1,000 U.S. adults surveyed last year by AlixPartners said they wouldn't pay extra for same-day shipping, down from 30% the year before.

Earlier this year, DoorDash announced deals with Barnes & Noble, Gap and Kohl's. As of June, it sold around 30 million products directly, up from around nine million at the same time last year, a company spokeswoman said.

Uber has rolled out several partnerships with retailers this year. Wholesale retailer Costco said this month that it would offer fast delivery through DoorDash and Uber across the U.S., adding to an existing delivery deal with Instacart.

Younger shoppers are "still visiting the clubs regularly, but they use these as fill-in shops," Costco Chief Executive Ron Vachris said on a recent earnings call.

 

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