PYMNTS-MonitorEdge-May-2024

DoorDash Expands Sephora Beauty Offering; Teams with Sally and MAC

DoorDash Expands Sephora Beauty Offering

DoorDash is moving further beyond its restaurant roots and deeper into the beauty sector.

The company announced in a Monday (March 18) press release a pair of new partnerships with Sally Beauty and MAC Cosmetics, as well as an expanded collaboration with Sephora. Customers can get beauty, hair, makeup and nail products delivered in less than an hour.

“We see consumers ordering from retail categories more than ever before and trying out new categories earlier in their DoorDash journey,” Shanna Prevé, vice president of partnerships at DoorDash, said in the release. “As consumers have higher demand and expectations for convenience and selection, we’re thrilled to connect merchant partners, like Sally Beauty and MAC, with people in new ways and unlock potential additional revenue.”

DoorDash has worked with Sephora since November 2022 but began its on-demand beauty offering in 2021, per the release.

DoorDash is looking to grow “to something more like a super app” and “is expanding its retail offerings by orders of magnitude each year” to make that happen, PYMNTS reported last month.

Speaking during a February earnings call, CEO Tony Xu discussed the rate of the aggregator’s growth in the category.

“When you look at selection, that’s something that we’re working towards,” Xu said at the time. “I mean, it’s happening actually pretty rapidly and consistently, where three years ago, when we’d just launched our service, we were working with maybe a couple of dozens of retailers. Now, that’s in the hundreds, with hundreds of thousands of stores. So, that remains a bear.”

The company is positioning its platform not just as a food delivery marketplace but as a service that can provide value to smaller merchants throughout a range of categories, PYMNTS noted at the time.

In a letter to shareholders released with the earnings report, Xu and Chief Financial Officer Ravi Inukonda said small businesses face “disadvantages in scale, data and efficiency” when compared to major retailers. They said DoorDash can help these mom-and-pop shops operate with “increased simplicity, greater scale and greater efficiency.”

Other companies in the space are also branching out beyond just delivering food. In the United Kingdom, Deliveroo launched Deliveroo Shopping, which lets customers order retail items such as electronics and toys. The company has spoken of plans to expand into other categories, such as pharmacy, home care and pet care.

For all PYMNTS retail coverage, subscribe to the daily Retail Newsletter.

PYMNTS-MonitorEdge-May-2024