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The Street
The Street
Colette Bennett

DoorDash Has a Whole New Business Consumers Should Love

The evolution and ongoing growth of delivery apps has changed the way we function on a daily basis, from how we get our groceries to how we order our dinner.

Thanks to the rise of DoorDash (DASH) and Uber Eats (UBER), we've grown to expect that we can have any food we desire within an hour without having to move a muscle, something that would (and did) amaze us not so long ago.

Then, the covid pandemic caused people to rely heavily on these services, further grooving the habit into our collective consciousness.

But of course, all businesses must evolve once an amazing service becomes the status quo. Target's (TGT) has done that by adding returns and Starbucks (SBUX) drink delivery to it's Drive-Up service, making the experience even better for the customer and encouraging further brand loyalty.

Both DoorDash and Uber have seen their sales shrink as the world has slowly eased past pandemic restrictions, willing to brave restaurants and retail stores once again. In order to cope, both have had to think of ways to make their services more appealing.

And now, it seems DoorDash has thought of one.

Shutterstock

What Is DoorDash's Newest Feature?

Back in March 2022, DoorDash announced that it would test a new feature called Package Returns. 

To use it, DoorDash users could request a package return in the app and have a dasher pick up the package and bring to USPS, UPS (UPS), or FedEx  (FEDEX)  for you.

There are some limitations to the service: your item must weigh under 30 pounds, already have a shipping label attached, and must not have a worth of more than $100.

The cost of the service has not been confirmed yet, but it is free to use for DashPass members for a limited time, according to an ad in the app.

DoorDash has declined to confirm which cities are involved in the test run, although reports of it being available in Atlanta have started to surface on Twitter.

Uber has explored working with packages in the past. It announced its own package service in 2020 called Uber Connect. But rather than ferry returns for you, its service would pick up packages or food and bring them to another address within the same city.

It also tried out a package delivery service in Manhattan back in 2015, charging $4 for each pickup.

Will This Move Boost DoorDash's Business?

While it's likely that people will use the service, all three major delivery services offer forms of package pickup. UPS and FedEx charge for it, but USPS will pick up your package for free.

However, many don't use these services as they may not be aware of them or may not want to fill out a form. DoorDash simplifies the process, making a package pickup as easy as tapping a few buttons in the app.

Despite reporting stronger than expected sales in its first quarter earnings call, DoorDash stock slumped in May as analysts predicted potential downgrades on the horizon later this year.

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