Petco today announced that it is partnering with DoorDash (DASH -1.03%) for same-day delivery, the first time the company has offered such a service. It comes as part of the pet supply retailer's newly redesigned digital experience amid plans for an initial public offering.
DoorDash, which just had its own wildly successful IPO, will be Petco's exclusive third-party delivery partner, which consumers will be able to access through its website and app.
Having a dog in the hunt
The pet supply leader says there is no fee or membership enrollment required to get delivery, but if you want it free, there's a $35 order minimum.
Petco also unveiled a revamped website, which it says was redesigned to focus on the health and wellness of pets, while highlighting convenience for consumers. It features curbside pickup; same-day, one-day, or two-day delivery; and repeat delivery.
Consumer demand for pet supplies has been high during the pandemic, and off-premise services are a point of differentiation. It's proved to be a recession-resistant industry. Analysts at PackagedFacts forecast online sales of pet products will hit 24% of the total $78.5 billion estimated sales this year, and grow to 26.5% by 2024.
Amid the boom, Petco is looking to go public with a reported $6 billion valuation. DoorDash made its public debut on Wednesday and was greeted with investor enthusiasm as its stock soared 80%.
Petco's same-day delivery service will be fulfilled through DoorDash's white-label platform called DoorDash Drive that allows retailers to use their own websites, apps, and other channels to generate sales and then have them fulfilled with DoorDash's logistics service.