The joke, for the longest time, was that there was a Starbucks (NASDAQ:SBUX) almost everywhere you looked. Now, Starbucks is in your own home. Or at least it’s at your front door thanks to a new partnership with DoorDash (NASDAQ:DASH) that will complete by the end of this month. Starbucks is up slightly, but DoorDash is down significantly more as a result of this move.
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Originally, Starbucks to your front door was a product of a pilot program. Put to work originally in Sacramento, Atlanta, and Houston, it then expanded out to three more cities: New York City, Portland, and Seattle. The pilot was retooled a bit and then expanded. Now, it’s going out on the big stage for the entire United States. Starbucks offers up around 95% of its total core menu, both hot and cold, on DoorDash, and DoorDash handles the delivery and gets it to your door. There’s even specialized packaging designed to get the food and drink safely to their destination.
This move isn’t exactly that new. DoorDash is a bit late to the party, as Starbucks has partnered with the likes of Uber Eats (NASDAQ:UBER) since 2018. DoorDash even partnered up with Roku (NASDAQ:ROKU) to give its users the ability to place Starbucks orders through Roku services, with fulfillment by DoorDash. Starbucks, for its part, has worked to get this deal off the ground to the entire country since last September. Taking advantage of the convenience market should mean big things for Starbucks to come.
While the market is reacting to the move in a mixed fashion, overall, analysts have Moderate Buy consensus ratings on both Starbucks and DoorDash. Starbucks, however, only has a 9.79% upside potential thanks to its $114.95 average price target. However, DoorDash has 34.11% upside potential with a $75.56 average price target.
