Dive Brief:
- DoorDash has launched a package pickup service in the midst of the busy post-holidays returns season, the company announced Wednesday.
- Through the service, customers can request a DoorDash "Dasher" to pick up prepaid packages from their home and drop them off at a UPS, FedEx or U.S. Postal Service location. Up to five packages can be picked up per order for a flat fee of $5, or $3 for members of the DashPass subscription service.
- "With Package Pickup, we’re leveraging our existing logistics infrastructure to meet a new use case for consumers and simplify the package returns process," DoorDash said in its announcement.
Dive Insight:
DoorDash picked a good time to roll out its package pickup service, as returns activity jumps following the flurry of gifts exchanged during the holidays.
Retailers can expect to see an average of 17.9% of merchandise sold during this past holiday season returned, a value of nearly $171 billion, according to a report from Appriss Retail and the National Retail Federation. That's a higher percentage than the 16.5% overall rate of merchandise returned in 2022.
"For those looking to avoid the headache of post-holiday returns while meeting retailers’ shortening return windows, the timing has never been better to try the service," DoorDash said.
DoorDash highlighted the convenience its new service offers for e-commerce shoppers in its announcement. Customers attach a prepaid shipping label or send a QR code to the Dasher picking up their package. The Dasher will send a confirmation photo to the customer once the drop off is complete.
A returns pickup service has been offered in the rapid delivery space before. Uber launched a limited-time returns service in 2015 in Manhattan, New York. The offering, available via the now-shuttered UberRUSH service, applied to pre-paid e-commerce purchases at $4 per pickup.
DoorDash's foray into reverse logistics comes as the company and its competitors expand their offerings beyond restaurant deliveries. The company’s convenience and grocery business grew 80% year over year in its most recently reported quarter.
