Walgreens and DoorDash Launch New Delivery Service Partnership
… Walgreens Strengthens Nationwide Delivery Services To Better Serve Consumers And Investors …


Walgreens fortifies its commitment to consumers, patients and investors while DoorDash widens the scale and scope of its services to enhance its IPO position in the future

John G. Baresky

Walgreens (NASDAQ: WBA) has signed on a second consumer home delivery service partner. Based in San Francisco, DoorDash will provide home delivery services spanning more than 2,300 items including over-the-counter (OTC) medications to consumers for Walgreens stores.

The agreement with DoorDash is a strategic marketing decision by Walgreens as it has a similar agreement in place with Postmates. By adding another delivery service vendor, Walgreens is embracing customer preferences and providing them a choice of consumer courier providers. It also adds an element of competition between DoorDash and Postmates to perform at a higher level.

DoorDash gains greater notoriety and more revenue plus a wider growth path through collaborating with Walgreens

Walgreens and DoorDash are launching their program in these three markets:

DoorDash and Walgreens are launching the program now in:

  • Atlanta
  • Chicago
  • Denver

Postmates already delivers nationwide for Walgreens. Founded in 2013, DoorDash is primarily known as a delivery service engaged with supporting restaurants. It reportedly has plans to take itself public and filed initial paperwork with the Securities and Exchange Commission (SEC).

For now, its primary owners are private equity and venture capital investment firms CRV, Khosla Ventures, KPCB, Sequoia, SVAngel and Y. By partnering with the large scale Walgreens brand organization and expanding its services beyond restaurants and other foodservice businesses, it establishes further revenue streams for its equity owners and cultivates its future viability as a publicly held firm in the future.

Walgreens is a leading contender in pharmacy, consumer retail and other global healthcare market sectors

The COVID-19 pandemic plus ongoing e-commerce versus retail competition that encompasses same-day delivery options provided by other companies like Kroger, Target, Walmart plus Amazon and its PillPack online pharmacy is driving organizations to increase convenience. Walgreens is competitively leveraging their retail pharmacies (over 9,200 in the United States) through a service and marketing strategy to always be on-call to support consumers across the nation.

Walgreens is assertively deploying a marketing and transformation strategy across their organization that also includes the potential of taking itself off the market as a publicly-traded firm through a private equity move involving KKR. They are also fortifying their market position and revenue streams through partnerships.

Within the last 18 months, Walgreens has entered into strategic alliances and partnerships with these and other companies:

Walgreens has also made changes in its executive ranks through the promotion of Richard Ashworth, President, Walgreen Co. and the hiring of Dr. Kevin Ban, Chief Medical Officer.

Global competitors and investors always have their eyes on Walgreens

Having paid a dividend for 85 continuous years, Walgreens strives to grow its revenue by providing value to its customers and investors. The latest partnership deal with DoorDash exemplifies a Walgreens strategy to not only partner with other companies but also extend its access to more customers and increase its sales transactions through more channels. Since its founding in 1901, Walgreens continues to transform its business model to better serve the healthcare community, patients, consumers and Wall Street.

Thank you for reading this story

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