DoorDash Orders Surge in Q3, Takeaway Preference Defies Inflation – National

Food delivery company DoorDash Inc’s DASH.N orders hit a record high in the third quarter. Demand held firm against rising prices and rising inflation, beating Wall Street’s earnings targets and the stock on Thursday rose 10%.

Even though dining out has reopened, people are still ordering food online from the comfort of their own homes, just as they were during lockdown.

But DoorDash is starting to see some of the impact of recession-warned people buying fewer items every time they order, a company spokeswoman said.

Still, for the time being, we recorded 439 million orders in the quarter, with total order value (all app orders plus subscription fees) growing 30% to $13.53 billion, so all was optimistic.

Outside of food, categories such as groceries, convenience stores and retail also performed well.

“Retail and grocery partnerships will drive growth for DoorDash and also create opportunities to increase average order value,” said Nicholas Corey, an analyst at Third Bridge.

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DoorDash forecasts total orders of $13.9 billion to $14.2 billion for the fourth quarter, reiterating its full-year forecasts for key industry metrics.

Labor shortages are a concern for U.S. delivery companies, but Uber Technologies (UBER.N), the parent company of Uber Eats, said on Tuesday that active drivers had returned to pre-pandemic levels in September 2019.

DoorDash said it has not been affected by the driver shortage, except for the first quarter of 2021. At this time, the US government issued his second stimulus check to help people cope with the pandemic.

According to Refinitiv’s IBES data, the company’s third-quarter revenue increased 33% to $1.7 billion, beating analyst estimates of $1.63 billion.

However, the San Francisco-based company posted a better-than-expected net loss of $295 million, or 77 cents per share.

(Reporting by Ananya Mariam Rajesh, Bengaluru; Editing by Devika Syamnath)