TripAdvisor, Inc. (NASDAQ:TRIP) has added another food-delivery service, DoorDash, to its offerings.
The world's largest travel site announced that it has entered into a partnership with DoorDash to incorporate food-ordering service into its restaurant listings. The terms of the deal have not yet been disclosed.
The tie-up will help travelers order meals from restaurants directly by means of TripAdvisor's desktop or mobile platform. The deal will attract more restaurant owners and consumers to its mobile apps.
DoorDash is an on-demand food delivery platform. Reportedly, it works with 90% of the top 100 restaurants that offer delivery, including Chipotle, IHOP, Chick-fil-A, Red Lobster and White Castle.
Coming to share price performance, the stock has outperformed the industry it belongs to on a year-to-date basis. It has gained 85.9% compared with the industry’s growth of 5.6% in the said period.
More About the Partnership
Per the partnership, TripAdvisor will integrate the online food-ordering company’s network of 24,000 listed restaurants into its desktop as well as mobile platform.
Following the deal, users can scroll through TripAdvisor restaurant listings and order food from delivery.com restaurant partners by clicking the Order Online button. The deal will help DoorDash to gain access to millions of consumers who are looking for delivery or takeout meals, thereby expanding its customer base.
TripAdvisor restaurants are one of the fastest growing business units within the company. The travel site has been continuously making efforts to expand business through various partnerships.
In this regard, the company partnered with delivery.com earlier in June to expand its offerings and boost conversion rates. Last year, it partnered with London-based startup, Deliveroo, thereby adding a network of 200 restaurants into its desktop website, mobile website and mobile app.
The recent deal will further help TripAdvisor to expand its user base.
Bottom Line
With millennials becoming more concerned about convenience and seeking speedier options, enhancing delivery has become crucial for quick-service industry players.
Per market research firm The NPD Group, delivery currently represents 1.7 billion foodservice visits annually, with young adults being its heaviest users, accounting for 56% of foodservice delivery orders.
We believe that TripAdvisor’s constant efforts to enhance offerings through partnerships, inventive restaurant technology, user-friendly platforms and an enhanced delivery system will help reach out to more customers.
Zacks Rank and Other Key Picks
Currently, TripAdvisor carries a Zacks Rank #1 (Strong Buy). Other top-ranked stocks in the broader technology sector include AMETEK, Inc. (NYSE:AME) , QuinStreet, Inc. (NASDAQ:QNST) and Stamps.com Inc. (NASDAQ:STMP) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for AMETEK, QuinStreet and Stamps.com is currently pegged at 11.18%, 25% and 15%, respectively.
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