DoorDash Stock Plummets 8.06% Despite Strategic Partnership with Domino's Pizza

On April 3, 2025, DoorDash (DASH) experienced a significant decline, with its stock price dropping by 8.06%. The trading volume for the day was 12.75 billion, placing it at the 99th position in the overall market rankings.

Domino's Pizza has announced a strategic partnership with DoorDash, marking a significant expansion of its delivery services. Starting in May 2025, customers in the U.S. will be able to order Domino's Pizza through the DoorDash app, with plans to extend this service to Canada later in the year. This collaboration aims to leverage DoorDash's extensive reach and customer base to drive incremental sales for Domino's, particularly in suburban and rural markets.

Under this partnership, Domino's drivers will continue to handle deliveries, ensuring a seamless integration with the DoorDash platform. Customers using the DoorDash app will be able to track their orders and, if they are DashPass members, enjoy unlimited $0 delivery fees and reduced service fees on orders over $12. However, Domino's loyalty program, Domino's Rewards, will remain exclusive to the pizza company's own eCommerce platforms.

This move by Domino's represents a shift in its strategy towards third-party delivery services, following a previous partnership with Uber Eats in July 2023. The collaboration with DoorDash is expected to provide Domino's with access to a new segment of customers, potentially increasing its delivery orders significantly. DoorDash's marketplace, which already offers products from 94 of the top 100 restaurants and 44 of the top 100 retailers in the U.S., is seen as a valuable platform for expanding Domino's reach.