Dive Brief:
- Adding another company to its lineup, DoorDash is partnering with Meta to pilot Facebook Marketplace deliveries, a DoorDash spokesperson confirmed via email to Retail Dive.
- The spokesperson said that the two companies are testing the service in multiple cities in the U.S., but declined to say which cities. DoorDash delivery drivers will only transport items that can fit within the trunk of a car, the spokesperson said.
- Through the service, customers can order deliveries within a 15-mile radius. DoorDash delivery drivers will transport the orders within 48 hours, the spokesperson confirmed.
Dive Insight:
DoorDash declined to answer Retail Dive’s questions regarding when the pilot program between DoorDash and Meta started and their plans for expanding the service, but said instead, “DoorDash is always thinking about new ways to provide the communities we serve with access to unparalleled convenience and opportunity through our platform. We continually explore and test new innovations.”
DoorDash’s collaboration with Meta is a continuation of its expansion beyond restaurant deliveries. In December 2021, J.C. Penney enlisted DoorDash for same-day deliveries of its home products at more than 600 stores, as well as beauty and salon products in select locations. That same month, the platform debuted its DashMart virtual convenience store brand in New York City.
DoorDash faces stiff competition from Uber, which has also added more brands and retailers to its roster of same-day delivery clients. Similar to DoorDash’s partnership with Facebook Marketplace, Uber teamed up with resale marketplace Mercari in July 2021 to facilitate product exchanges between sellers and customers. Over the past year, Uber has built out its platform through partnerships with Hims & Hers, Bed Bath & Beyond and The Body Shop, among others.
The partnership between Meta and DoorDash comes as the social media behemoth faces a financial slowdown and is trying to refine its e-commerce operations. Meta reported a 36% decline in net income and a 1% dip in total revenue year over year in its Q2 earnings report. Earlier this month, the company announced that it would terminate its live shopping feature on Facebook and will instead turn its attention to short-form videos. During its Q2 earnings call, Meta CEO Mark Zuckerberg cited Apple’s iOS changes as part of the reason the company is working to improve the customer experience of interacting with businesses on its platforms, including through business messaging and shops.
“Many of the macro factors having an impact on our revenue are continuations of things we’ve seen in previous quarters, such as the continued impact of the war in Ukraine and the normalization of e-commerce after the pandemic peak,” Sheryl Sandberg, Meta COO, said during the Q2 earnings call. “But there are also new challenges with rising inflation and uncertainty around a looming recession.”
