Knock, knock. Who’s there? It’s DoorDash delivering your favorite meals along with another quarter of solid results, which sent its stock up 8% last Friday. Revenue jumped 23% to $2.63B, with a net loss of $157M, while total orders surged 19%. Barclay’s Ross Sandler remarked that the food delivery leader “continues to defy gravity with its execution and consistency amid a challenging end market.”
- DoorDash’s stock has risen nearly 20% this year, even as consumer spending and restaurant traffic have slowed, with the latter falling 2.6% in the first half of the year.
- CEO Tony Xu noted that while restaurants are facing “headwinds in traffic, their digital channels are growing very robustly — many multiples of their overall growth.”
Dashing out the competition: The food delivery app, which commanded a 67% market share of US meal delivery sales in March, is venturing into new areas like groceries, beauty, and home improvement by partnering with well-known brands such as Ulta Beauty and Michaels. This expansion has led to more frequent orders and threatens traditional shippers like UPS and FedEx, as customers increasingly choose DoorDash’s quick and direct deliveries to order a growing range of retail items.
