The last year has pushed companies to become more innovative with their product delivery and the breadth of product offerings. A press release announcing deliverable Covid-19 tests has shown some promise for rocky DoorDash (NYSE:DASH) stock.
The company announced on Monday that it would be facilitating the delivery of coronavirus test kits in collaboration with health companies Vault Health and Everlywell. The trio of businesses are offering two different test kits for delivery by DoorDash drivers.
The test kits deliveries will only be taking place in a handful of major cities for now. However, DoorDash has made clear its intentions to expand the service in the coming months.
Test delivery services expand further on DoorDash’s DashMart model. DashMart locations offer 24/7 access to household essentials as well as access to local restaurants. Now, they will also offer easy access to test kits.
The announcement shows promise for DoorDash as it adapts its business model to the healthcare crisis and offers a large-scale service that has not been implemented elsewhere.
The Bottom Line on DASH Stock
Many investors have been bearish on DASH stock in recent months, speculating about whether or not the company can live up to its valuation. But, this news could be a real turnaround moment for the company as it looks to broaden itself from food delivery service to healthcare partner.
I think the DASH stock valuation is highly contingent on the success of the test kit delivery service. The announcement shows that the company is seeking out ways to expand its business model. Food delivery companies like DoorDash are a dime-a-dozen now. This is a time where the business can differentiate itself from the pack. It is a good idea to keep an eye on DASH in the coming weeks.
As of this morning, DASH stock is up slightly, by about 0.5%.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article.
