DoorDash and Macy’s Join Forces

Same-Day Delivery Coming to Department Stores

This holiday season, many Americans could get their shopping done with a side of takeout. That’s because Macy’s (M) and DoorDash have announced a new partnership.

DoorDash will fulfill same-day and next-day delivery orders placed at 500 Macy’s and Blooomingdale’s stores across the United States. For same-day delivery, shoppers will need to place their orders before noon or 1 p.m. Purchases made in the afternoon will be delivered by DoorDash the next day. Macy’s CEO Jeff Gennette said this speedy delivery option through Doordash will be available to shoppers even in the week before Christmas.

Retailers Adapt to COVID Holiday Season

The new partnership comes as many businesses try to manage the impact of COVID-19 on the busy holiday shopping season. Macy’s innovative solution to offer DoorDash delivery will coincide with early shopping windows and extended holiday sales. Many businesses including Macy’s are advertising seasonal sales that start now and run until Christmas.

If these companies can successfully encourage consumers to spread out their shopping this holiday season, they may be able to avoid crowding inside stores and the frustrations of shipping delays. This could lead to better customer experience and potentially increased sales. Other changes in the industry include fewer stores being open to holiday shoppers all night after Thanksgiving. After Walmart (WMT) said its stores would be closed on Thanksgiving Day, many other retailers announced similar measures.

DoorDash Makes Plans for a Public Offering

As the holiday season reaches its boiling point, DoorDash is also finalizing plans to go public. The on-demand delivery company expects to move forward with a traditional initial public offering in November or December of this year.

DoorDash filed confidentially with the SEC before the onset of the COVID-19 pandemic. When lockdown orders began, DoorDash workers were seen as essential for their grocery and takeout deliveries to people at risk of contracting the coronavirus. Since then, the company has experienced both an exciting surge in business and a few troubling regulatory challenges. Consumers sued DoorDash and a collection of other food delivery companies for adding too many extra fees to delivery orders.

Like Lyft (LYFT) and Uber (UBER), DoorDash is so far unprofitable and could be impacted by California contract labor legislation. In June, DoorDash raised $400 million, pushing its valuation to $16 billion. The company’s latest partnership with Macy’s could be an interesting way to aid an ailing retailer while expanding their own service ahead of a hotly anticipated IPO.

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