Walgreens' (WBA) Retail Products Now Available on Uber Eats
Walgreens Boots Alliance WBA is expanding its collaboration with Uber Technologies UBER to provide retail products directly to customers via Uber Eats platform. The on-demand delivery service is now available from more than 7,800 stores across the United States, with plans to add Puerto Rico soon.
For investors’ note, the collaboration between Walgreens and Uber kicked off earlier this year when the two worked together to bring a new vaccine scheduling option on the Uber app, enabling Uber users to choose to schedule a COVID-19 vaccine appointment at Walgreens in the United States.
The recent collaboration is likely to expand Walgreens’ customer base and strengthen its retail pharmacy business.
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Under the expanded collaboration, the first to be offered are top-selling Walgreens retail items, with more products added each day. The goal is to expand to the retailer’s entire range of more than 20,000 products over the course of time.
Customers can order health and wellness, beauty and personal care, household essentials, over-the-counter medications, and many more, from Walgreens via the Uber Eats platform.
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Notably, those who want to order Walgreens items can simply open the Uber Eats app, click the convenience or pharmacy icons, choose Walgreens and start shopping. To mark the launch, until Jun 27, Walgreens and Uber Eats are offering customers a $20 promo off on orders of $30 or above.
Significance of the Collaboration
Per Walgreens’ management, the partnership with Uber for on-demand delivery through both Walgreens and Uber’s channels along with integrated vaccine scheduling provides customers simple and effortless ways to put their health and well-being needs at the forefront, which will continue to be essential as the world emerges from the pandemic.
By offering on-demand delivery of essentials to hassle-free vaccine scheduling at a click, the companies are focused on eliminating barriers and helping customers get anything instantly.
Per a report by Grand View Research, the global same day delivery market size was valued at $4.6 billion in 2019 and is expected to reach $15.1 billion by 2027, at a CAGR of 20.3%.
Considering the market opportunities, Walgreens’ efforts to extend on-demand same day retail products delivery are well-timed.
In May 2021, Walgreens introduced mobile clinics and same-day appointments, ensuring ease of access to COVID-19 vaccines across the country. Walgreens will activate multiple mobile clinics in Chicago. Notably, the mobile clinics aim to bring COVID-19 vaccines directly to underserved communities and to those who face difficulty in accessing the vaccine.
In the same month, Walgreens launched contactless “Same Day Delivery,” offering customers more convenient, safe and easy shopping solutions in less than two hours for retail products. Now customers are able to order more than 24,000 items directly from Walgreens for Same Day Delivery nationwide.
Shares of the company have gained 28.7% in a year’s time compared with the industry’s 33.2% rise.
Zacks Rank and Key Picks
Currently, the company carries a Zacks Rank #3 (Hold).
A few better-ranked stocks from the broader medical space are Envista Holdings Corporation NVST and IDEXX Laboratories, Inc. IDXX, each carrying a Zacks Rank #2 (Buy). You can see the complete list of Zacks #1 Rank (Strong Buy) stocks here.
Envista Holdings has an estimated long-term earnings growth rate of 26%.
IDEXX Laboratories has a projected long-term earnings growth rate of 20%.
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