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Great question. Here's your answer, Door Dash is only charging Kroger $80/card so Kroger is breaking even. Door Dash hopes to make money a few ways First and foremost unredeemed gift cards will be ~10%. Secondly, they are piggy backing on Krogers enormous customer base to expand their own and generate sustainable growth. Finally, Door Dash has it's own fees and cost premiums so an $80 sale will turn $5-$10 profit.
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from mikeloya88
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In for 1. How does Kroger make money from this?
Great question. Here's your answer, Door Dash is only charging Kroger $80/card so Kroger is breaking even. Door Dash hopes to make money a few ways First and foremost unredeemed gift cards will be ~10%. Secondly, they are piggy backing on Krogers enormous customer base to expand their own and generate sustainable growth. Finally, Door Dash has it's own fees and cost premiums so an $80 sale will turn $5-$10 profit.
Great question. Here's your answer, Door Dash is only charging Kroger $80/card so Kroger is breaking even. Door Dash hopes to make money a few ways First and foremost unredeemed gift cards will be ~10%. Secondly, they are piggy backing on Krogers enormous customer base to expand their own and generate sustainable growth. Finally, Door Dash has it's own fees and cost premiums so an $80 sale will turn $5-$10 profit.
You've answered the question very well from the DoorDash perspective, but if Kroger is only "breaking even" then I don't see what they are getting in return for giving DoorDash access to their "enormous customer base" (as you put it). What else is Kroger benefitting by here?
The specific financial details of agreements between wholesalers like Target and platforms like DoorDash for gift card sales are typically not publicly disclosed. The revenue-sharing arrangements can vary, and the terms may be negotiated between the companies involved. It's common for a percentage of the gift card value to go to the platform, while the remainder goes to the retailer. The exact percentage split can depend on the negotiations between the parties and the nature of their partnership.
Finally got it done but what a PITA the Kroger website is. Several failed attempts because of zip code errors. Finally had to create an account with them so they can mine my data. Another failed attempt then finally worked on a different cc
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