DoorDash is rooted in same-day flower delivery

Diving brief:

  • DoorDash on Wednesday announced it is entering same-day flower delivery, partnering with more than 3,000 local and national florists ahead of the Valentine’s Day rush, according to a press release emailed to Restaurant Dive. Flower deliveries can also be scheduled up to 30 days in advance.
  • A new “Flowers” tile now appears at the top of the DoorDash app listing florists and their offerings. To promote the new vertical, DoorDash will give 10 customers who order flower deliveries between February 9 and February 14 a chance to win free diamond necklaces from Neil Lane.
  • The launch comes as third-party delivery companies diversify their offerings to boost revenue. In recent months, DoorDash has added liquor delivery, nationwide restaurant shipping, fast delivery for retailers, and DoubleDash, which allows customers to order from nearby restaurants and convenience stores by a single transaction. The business has also expanded into virtual restaurants and shared kitchen spaces.

Overview of the dive:

The third-party restaurant delivery industry is changing rapidly as these companies become profitable and expand their infrastructure, finding new growth opportunities along the way. A diverse delivery platform can take advantage of increase consumer demand for efficient delivery for a range of product categories by consolidating these offerings into a single hub. This diversity could also protect hard-earned profitability.

DoorDash isn’t the only delivery company using this strategy. Uber Eats just added a new “Babies and childrencategory that delivers products like diapers. Uber Eats and Grubhub have also explored convenience stores, retail and liquor delivery, while Waitr has its eye on the cannabis market.

So far, the floral delivery vertical seems untapped by other major third-party delivery companies. The online flower delivery market generates approximately $5.2 billion and is on track to catch up with the physical market by $5.8 billion, according to IBISWorld research. This is significant white space, especially since 50% of American consumers ordered on a delivery platform in December, and 58% of those who ordered via DoorDash, according to Bloomberg Second Measure. Another vertical could keep current DoorDash users engaged and attract new customers to the platform.

Flower delivery could also be a boon for the company’s partner restaurants. Flowers are the third most popular gift for Valentine’s Day, according to research by National Retail Federation and Prosper Insights & Analytics. This behavior could place a wide range of consumers on the DoorDash app for flower delivery, which will also expose them to nearly 400,000 restaurants referenced on the platform. Valentine’s Day is the second most popular day of the year to gift on DoorDash, according to the company, so such cross-exposure could boost engagement.

Terisa K. Carn