DoorDash Stock Wavers After Striking Robo-Delivery Partnership With Waymo

DoorDash (DASH) and Waymo will team up to offer independent delivery services in Phoenix. DoorDash stock initially jumped to new highs on the news before pulling back in Thursday trading.

The two companies have begun testing the service and hope to officially launch it later this year in Arizona’s capital, according to a DoorDash blog post.

The deal marks the first collaboration between DoorDash and Google-backed Waymo. Waymo already operates ride-hailing service in Phoenix, including through a partnership with… Uber technologies (Uber).

DoorDash’s Waymo deliveries will initially focus on deliveries from DashMart, DoorDash’s convenience store offering.

Waymo said in a separate blog post that DoorDash users will need to opt in to allow self-delivery.

“When Waymo arrives, open the trunk using the DoorDash app and pick up your items,” the blog post said.

Automation in food delivery

The Waymo partnership “furthers our vision of an independent, multimodal future for local commerce,” David Richter, vice president of business and corporate development at DoorDash, said in a press release.

The partnership with Waymo comes a week after DoorDash announced it was working with them Robot service (SERV) to deliver meals from restaurants to customers in Los Angeles.

DoorDash also recently launched its own mini delivery robot, called Dot, which it tested in Tempe, Arizona, as well as in Phoenix.

Its major competitor, Uber, has also expanded its self-delivery efforts. It has a separate partnership with the service, as well as with Avride and other developers of other delivery robots. Uber said last month that it would partner with Flytrex to test drone deliveries in the United States by the end of this year.

DoorDash stock is reversing lower

On the stock market today, DoorDash stock fell more than 1% to 269.14. Shares rose as much as 4% before pulling back later in the afternoon in an overall down day for the tech-heavy Nasdaq Composite.

Parent Google shares alphabet (GOOGL) gained a fraction to 252.31 in recent trading while Uber stock was down 2.8% at 91.88.

DoorDash’s gains temporarily pushed shares beyond a 5% buy zone from a 269.06 cup-with-handle entry, according to MarketSurge. The stock is also close to testing its 21-day moving average.

DoorDash stock has gained nearly 70% overall year to date. Shares closed higher on Wednesday after positive coverage from analysts.

Meanwhile, DoorDash stock boasts a near-perfect IBD Composite Rating of 98, according to IBD Stock Screener.

This result puts DoorDash at the top of the online retail industry group of 59 stocks tracked by IBD, which have performed well this year. The group ranks 31st among 197 industry groups, based on six-month price performance. The overall collection is up 26% year to date.

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