Dee-Ann Durbin
Doordash said Tuesday that demand for delivery increased in the first quarter despite more Americans becoming increasingly unsure about the US economy.
“Even if there was a change in consumer sentiment, there was no change in consumer behavior,” co-founder and CEO Tony Xu said in a call with investors. “Food is truly the most resilient category.”
Total orders rose from a quarterly record of 18% to 732 million. Doordash said that demand for grocery delivery has exceeded previous quarter, with over 25% of active users ordering groceries. Doordash said it added our restaurant to the platform and expanded its geographical scope.
According to Chief Financial Officer Ravi Inukonda, customers who use the company’s Dashpass and Wolt+ subscription services, which charge monthly fees, feel that they are more affordable. The San Francisco company said 22 million people subscribe to these services.
Doordash has confirmed it will acquire UK Deliveroo for £2.9 billion ($3.9 billion) of cash and expand its operations in Europe, Asia and the Middle East. Derveroo first announced that it had received a bid from Doordash more than a week ago.
He also said Tuesday that he bought Sevenrooms, a New York company that manufactures hospitality management software, for $1.2 billion in cash. Doordash said the deal will expand its offering to merchants and help grow in-store sales and customer marketing.
Doordash expects the seven-room deal to close later this year, but Deliveroo’s trading is expected to close in the fourth quarter.
The acquisition is Doordash’s biggest since 2022, when it acquired Finnish rival Wolt Enterprises for $8.1 billion. The deal brought Doordash to 22 countries that were not yet operated, including Germany and Israel.
Xu said with the addition of DeRiboroo, Doordash will operate in 45 countries, of which 30 will operate in Europe. Founded in 2013, Derviroo served 7 million monthly active users last year. Founded in the same year, Doordash has 42 million active users every month.
Investors have expressed some concern about Doordash’s ability to generate profits when integrating DeRiboroo. Doordash’s shares fell nearly 9% on Tuesday.
Inuconda said the increase in size will help drive profitability.
“Our goal is to improve the economics of the unit. We will adopt it and continue to promote the improvement of retention and frequency of order that ultimately promote scale. And that size will drive business profitability,” he said.
Doordash’s revenue rose 21% to a quarterly record $3.03 billion. This was not enough to forecast Wall Street’s $3.09 billion, according to analysts voted by FactSet.
Net income was $193 million. This comes a year after reporting a loss of $23 million between January and March. Adjusted for one-off items, the company scores 44 cents per share, predicting Wall Street expectations with nickel.
Original issue: May 6, 2025, 12:36pm EDT
