DoorDash and Waymo will team up to offer autonomous deliveries in Phoenix. DoorDash stock initially jumped to new highs on the news before reversing lower in Thursday trading.
The two companies have begun testing the service and hope to officially launch later this year in the Arizona capital, according to a blog post from DoorDash.
The deal marks the first collaboration between DoorDash and the Google-backed Waymo. Waymo already operates a ride-hailing service in Phoenix, including through a partnership with Uber Technologies.
The Waymo deliveries from DoorDash will initially focus on deliveries from DashMart, DoorDash's convenience store offering.
Waymo said in separate blog post that DoorDash users will need to opt-in for allowing autonomous delivery.
"When Waymo arrives, open the trunk with your DoorDash app and grab your items," the blog post said.
Automation In Food Delivery
DoorDash VP Of Business and Corporate Development David Richter said in a news release that the Waymo partnership is "advancing our vision for a multimodal autonomous future of local commerce."
The partnership with Waymo comes a week after DoorDash announced it is working with Serve Robotics to deliver meals from restaurants to customers in Los Angeles.
DoorDash also recently launched a small delivery bot of its own, called Dot, that it has tested in Tempe, Ariz. as well as in Phoenix.
Top rival Uber has also expanded its autonomous delivery efforts. It has a separate partnership with Serve, as well as with Avride and other developers of other delivery robots. Uber last month said it would partner with the company Flytrex to test drone-based deliveries in the U.S. by the end of this year.
DoorDash Stock Reverses Lower
On the stock market today, DoorDash stock slipped more than 1% 269.14. Shares climbed as high as 4% before reversing lower later in the afternoon in a down day overall for the tech-heavy Nasdaq Composite.
Shares of Google parent Alphabet gained a fraction to 252.31 in recent trades while Uber stock is down 2.8% at 91.88.
DoorDash's gain temporarily pushed shares beyond a 5% buy zone from a 269.06 cup-with-handle entry, according to MarketSurge. The stock is also approaching a test of its 21-day moving average.
DoorDash stock has gained nearly 70% overall year-to-date. Shares closed higher Wednesday following positive analyst coverage.
Meanwhile, DoorDash stock boasts a near-perfect 98 IBD Composite Rating, according to IBD Stock Checkup.
That score places DoorDash at the top of the 59-stock Retail-Internet industry group tracked by IBD, which has performed well this year. The group ranks 31st among 197 industry groups, based on six-month price performance. The overall group is up 26% year to date.
