DoorDash Reports Record-High Orders as Consumers Seek Digital Solutions, Convenience
DoorDash set new company records across several metrics in the first quarter as it continued to expand its services into new segments of the local retail economy.
The on-demand delivery aggregator set new quarterly records for total orders, total dollar value of orders completed on its marketplaces, and revenue during the three-month period ended March 31, DoorDash said in a Wednesday (May 1) earnings release.
“What is known is that the direction of travel is always in the direction of greater digital, greater convenience,” Tony Xu, CEO and co-founder of DoorDash, said Wednesday during the company’s quarterly earnings call, explaining customers’ adoption of new offerings.
In recent months, DoorDash continued to move beyond its restaurant roots and entered the home improvement category by partnering with Lowe’s, expanded its offerings in the beauty sector by collaborating with both Sally Beauty and MAC Cosmetics, and grew its selection in the pets vertical by teaming up with Pet Supplies Plus.
The company has seen increasing pull from both consumers and retailers to expand its offering beyond where it started its retail offerings, which was solving for the “top-up use case” by helping customers restock their pantries with fruit, milk, coffee and other frequently consumer items in this middle of the week, Xu said during the call.
“That not only solved the consumer problem that wasn’t being addressed in the market at the time, it was also an incremental occasion for retailers,” Xu said. “That’s why we’re seeing a lot of pull.”
In the grocery sector, for example, DoorDash saw its third straight quarter of triple-digit year-over-year growth, Xu said. He attributed this to the company increasing the selection it offers, reducing the cost at which it makes that selection available, and improving the quality of the process in terms of timeliness and accuracy.
“Certainly I think we’re seeing that retention and usage and high engagement from consumers,” Xu said. “We believe that we’re making quite a lot of progress on our fulfillment quality and we’re also making progress on the cost to serve. So, all things are pointing in the right direction.”
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