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Walgreens and DoorDash Teaming Up for Delivery Service

By Eric Volkman – Jul 16, 2020 at 9:51AM

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It's only available in three metro regions for now.

Do you need some aspirin or floor polish? And do the rising numbers of coronavirus cases make you hesitant to head to a store to grab the goods? Anticipating many "yes" answers from the American public, Walgreens Boots Alliance (WBA 0.73%) and DoorDash are collaborating on a new store-to-front-door delivery initiative.

In its press release announcing the service, Walgreens said it would at first be offered only in the Chicago, Atlanta, and Denver areas. But over 2,300 items are available across a range of categories that includes over-the-counter medications, household goods, and convenience products. Orders can be placed and delivery arranged through DoorDash.

A Walgreens store in Montana.

Image source: Walgreens Boots Alliance.

Walgreens added that by the end of this summer, it aims to have 5,000 items available for delivery through DoorDash, and plans to expand the service to other markets, beginning with Cincinnati, Cleveland, Minneapolis, Oklahoma City, Phoenix, Sacramento, and Seattle.

As a lure to get people into the Walgreens delivery habit, DoorDash is offering 20% off customers' first order of at least $15 from the pharmacy chain. The discount is capped at $5, though, which means its value as a percentage of the order will start to drop off for purchases above $25.

The healthcare company did not specify the terms of its collaboration with DoorDash. It also did not proffer estimates for the potential effects on its business. It did say that with the arrangement, "We continue to offer additional ways to get essential retail products into the hands of customers at their door stoop or wherever and whenever is most convenient for them."

Investors seem to be pleased that Walgreens has found a convenient and reliable new channel to get its goods to customers. On Thursday, they had bid the company's stock up by 1.7% in late afternoon trading, against a fractional slump in the broader stock market.

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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