DoorDash and Walgreens Launch Unprecedented Access for SNAP Customers

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DoorDash and Walgreens announced a new collaboration to offer SNAP/EBT payment at nearly 7,800 Walgreens stores across the country. This partnership allows SNAP customers to make purchases directly from Walgreens using their SNAP/EBT cards, with DoorDash being the first third-party delivery service provider to offer this option at a major drugstore nationwide. The collaboration aims to increase access to food for over 14 million people living in food deserts and 40 million people in communities where over 1 in 10 households receive SNAP/EBT benefits. DoorDash has seen over 1.1 million consumers adding their SNAP/EBT cards since launching support in 2023. Consumers can order SNAP-eligible products from Walgreens for delivery within an hour on DoorDash, ranging from breakfast essentials to pantry staples. This partnership aims to simplify the shopping experience for shoppers and provide access to healthier food options.

Market Research Analyst

The introduction of SNAP/EBT payments via DoorDash at Walgreens outlets marks a significant evolution in the consumer retail space, particularly within the grocery and essentials segment. It bridges a important gap in access to food and household items for a segment of the population that has historically faced barriers in traditional brick-and-mortar shopping scenarios. By tapping into the SNAP/EBT program, which is designed to support low-income families, DoorDash and Walgreens are not only expanding their customer base but also fostering a socially responsible image. This initiative could lead to increased user engagement on the DoorDash platform, potentially translating into higher transaction volumes. It is essential to observe user adoption trends, as this will indicate the viability and future profitability of the program.

Financial Analyst

This collaboration between DoorDash and Walgreens expands both companies' reach within a growing segment of the market: SNAP/EBT beneficiaries. We must consider the financial implications of this move. The key metrics to scrutinize in the coming quarters will be the growth in the number of SNAP/EBT transactions, the average order value from these transactions and the potential boost in DoorDash's DashPass subscriptions. This move can be seen as a strategic investment in customer loyalty and market share expansion, which may not directly translate into immediate profitability but could lay the foundation for sustained long-term growth for both entities.

E-commerce & Delivery Industry Expert

The initiative is a pioneering step in the integration of EBT payments within the e-commerce and delivery industries. It's a sign of the evolving landscape where inclusivity is becoming a competitive advantage. As the first DSP to offer SNAP/EBT payments nationwide at a major drugstore, DoorDash is setting a precedent that may prompt other players to follow suit. We need to watch closely how competitors respond to this development. The integration's technical aspects and ease of implementation will also be key factors in its success and could serve as a benchmark for similar partnerships in the future.

SAN FRANCISCO--(BUSINESS WIRE)-- DoorDash (NASDAQ: DASH), the local commerce platform, and Walgreens (NASDAQ: WBA), a trusted, neighborhood health destination serving nearly 10 million customers each day, today announced a new collaboration to offer SNAP/EBT payment at nearly 7,800 Walgreens stores across the country. DoorDash is the first platform that enables SNAP customers to make purchases directly from Walgreens using their SNAP/EBT cards. In addition, DoorDash is the first third-party delivery service provider (DSP) to offer SNAP/EBT as a payment option at a major drugstore nationwide.

DoorDash and Walgreens Launch Unprecedented Access for SNAP Customers (Graphic: Business Wire)

With the addition of Walgreens, DoorDash more than doubles the number of stores available for on-demand delivery with SNAP/EBT payments on DoorDash. We continue to broaden food access by offering SNAP/EBT access to more than 14 million people who are living in food deserts, and over 40 million people living in communities where over 1 in 10 households receive SNAP/EBT benefits.

“Since launching support for SNAP/EBT payments in 2023, over 1.1 million consumers have added their SNAP/EBT cards to DoorDash,” said Fuad Hannon, VP of New Verticals. “This first-of-its-kind partnership with Walgreens offers convenient and critical access to food and pantry essentials for families and individuals across the country. We’re proud to remove as many barriers as possible when it comes to connecting people with food, wherever they live and however they choose to shop.”

As prices continue to rise on groceries and household essentials, consumers can order SNAP-eligible products using their SNAP benefits from their local Walgreens through DoorDash. Walgreens will offer more than 4,000 SNAP-eligible products for delivery within an hour on DoorDash.¹ Whether it’s stocking up on breakfast essentials including milk, oatmeal, or juice, or pantry staples such as nuts, bars, or snacks, consumers can shop the Walgreens marketplace directly on the DoorDash app to fulfill their grocery needs quickly and affordably.

“This collaboration with DoorDash means our shoppers can now get essential grocery items when they want, regardless of payment method and other barriers like work schedules and transportation,” said Balachandra Visalatha, SVP, Chief Product Officer at Walgreens. “Walgreens is a go to destination for daily needs for our shoppers and we continue to find solutions that make their shopping experience simpler so they can get access to healthier food options.”

DoorDash is one of the largest online marketplaces to offer SNAP/EBT recipients’ access to grocery delivery across the country. Now, nearly all DoorDash’s monthly active users have access to a SNAP store across all 50 states and Washington D.C. To further our commitment to increase access to food, DoorDash is excited to offer SNAP/EBT consumers, who are currently not DashPass subscribers, $0 delivery fee on up to 3 orders paid with SNAP at Walgreens.* DashPass members can access thousands of restaurants, grocery, and convenience stores at affordable prices, with $0 delivery fees and reduced service fees on eligible orders. DashPass members save $5 per eligible order on average.

Currently, Walgreens stores accept SNAP/EBT in-person at most locations. This collaboration with DoorDash allows shoppers across the nation to use SNAP/EBT at any Walgreens, regardless of where they live.

About DoorDash

DoorDash (NASDAQ: DASH) is a technology company that connects consumers with their favorite local businesses in more than 30 countries across the globe. Founded in 2013, DoorDash builds products and services to help businesses innovate, grow, and reach more customers. DoorDash is your door to more: the local commerce platform dedicated to enabling merchants to thrive in the convenience economy, giving consumers access to more of their communities, and providing work that empowers.

About Walgreens

Walgreens (www.walgreens.com) is included in the U.S. Retail Pharmacy and U.S. Healthcare segments of Walgreens Boots Alliance, Inc. (Nasdaq: WBA), an integrated healthcare, pharmacy and retail leader with a 170-year heritage of caring for communities. WBA’s purpose is to create more joyful lives through better health. Operating nearly 9,000 retail locations across America, Puerto Rico and the U.S. Virgin Islands, Walgreens is proud to be a neighborhood health destination serving nearly 10 million customers each day. Walgreens pharmacists play a critical role in the U.S. healthcare system by providing a wide range of pharmacy and healthcare services, including those that drive equitable access to care for the nation’s underserved populations. To best meet the needs of customers and patients, Walgreens offers a true omnichannel experience, with fully integrated physical and digital platforms supported by the latest technology to deliver high-quality products and services in communities nationwide.

TERMS AND CONDITIONS

Get $0 delivery fee on 3 orders $25+ at participating Walgreens stores paid with SNAP/EBT. Use code WAGSNAP, now through June 16. Valid only at participating Walgreens locations. Service fees, small order fees, surge fees, gratuities, order minimums, and/or taxes still apply. Limit three redemptions per person. Offer not valid for orders containing alcohol. Valid for delivery orders only. All deliveries subject to availability. Offer only available on the DoorDash app or website. DoorDash is not a retailer or seller. Subject to change by DoorDash at any time. Void where restricted or prohibited by law. Door Dash's computer is the official date/time keeping device for this Offer. Offer cannot be used retroactively for prior purchase. Must have or create a valid DoorDash account with a valid form of accepted payment on file. No cash value. Non-transferable. See full terms and conditions at help.doordash.com/consumers/s/article/offer-terms-conditions.

¹Based on average delivery time. Delivery times may vary and are not guaranteed.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240424416259/en/

press@doordash.com

Source: DoorDash

FAQ

How many Walgreens stores will offer SNAP/EBT payment through DoorDash?

Nearly 7,800 Walgreens stores across the country will offer SNAP/EBT payment through DoorDash.

What makes DoorDash the first platform to enable SNAP customers to make purchases directly from Walgreens?

DoorDash is the first platform to enable SNAP customers to make purchases directly from Walgreens using their SNAP/EBT cards.

How many consumers have added their SNAP/EBT cards to DoorDash since 2023?

Over 1.1 million consumers have added their SNAP/EBT cards to DoorDash since 2023.

What benefits does the collaboration between DoorDash and Walgreens offer in terms of food access?

The collaboration aims to offer SNAP/EBT access to over 14 million people living in food deserts and 40 million people in communities where over 1 in 10 households receive SNAP/EBT benefits.

What kind of products can consumers order from Walgreens using their SNAP benefits on DoorDash?

Consumers can order SNAP-eligible products such as breakfast essentials, pantry staples, nuts, bars, and snacks from Walgreens using their SNAP benefits on DoorDash.