Cloud-based web development services provider Wix.com Ltd. (NASDAQ: WIX) recently revealed that it has entered into a partnership with DoorDash’s white-label fulfillment platform, DoorDash Drive. DoorDash is an online food ordering and delivery platform.
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Following the news, shares of the company declined 1.4% to close at $104.13 on Wednesday.
Strategic Impact
Online food delivery service has grown massively in the past couple of years due to the work-from-home culture. As a result, restaurants are constantly looking to ramp up their digital capabilities. To this end, Wix’s partnership with DoorDash is likely to be beneficial for its restaurant partners.
The partnership with DoorDash will allow the restaurants on the Wix Restaurants platform access to DoorDash’s delivery fleet. Further, the restaurant owners will have more customer data and insights into their purchase trends.
DoorDash Drive is available to restaurant owners via Wix Restaurants online, the Dine App, and the Wix Branded App.
Management Commentary
The VP of Wix Restaurants, Adam Garfield, said, “Offering an integration with DoorDash Drive empowers restaurants to provide a delivery solution that can increase profitability, build a stronger direct connection with customers, all while decreasing logistics headaches from Wix Restaurants’ commission-free platform.”
Stock Rating
The Wall Street community is cautiously optimistic about the stock and has a Moderate Buy consensus rating based on 10 Buys and five Holds. WIX’s average price target of $137.50 implies that the stock has upside potential of 32.1% from current levels. Shares have declined 62.7% over the past year.
Website Traffic
TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, offers insight into Wix’s performance this quarter.
According to the tool, the Wix website recorded a 10.95% monthly decline in global visits in February, compared to the same period last year. Further, the footfall on its website has declined 22.07% year-to-date, compared to the previous year.
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