DoorDash added four grocery partners, expanding its reach. CEO Tony Xu says grocery delivery is still in its early stages, with growth potential ahead.
DoorDash isn’t just about takeout anymore. The company announced new grocery partnerships on Feb. 25, adding Angelo Caputo’s, Festival Foods, Woodman’s, and Marc’s. This expands its footprint in Illinois, Wisconsin, and Ohio, strengthening its presence in the sector.
DoorDash’s grocery business launched in 2020 but is now a key growth driver. CFO Ravi Inukonda told investors on Feb. 11 that it will boost both revenue and profitability. More than 99% of U.S. DoorDash users can now access non-restaurant retailers on the platform.
Customers who started with small top-up grocery orders now buy larger baskets. CEO Tony Xu said spending per recurring customer is rising. DoorDash also rolled out SNAP payment acceptance this month, adding accessibility for low-income shoppers.
Xu believes U.S. grocery delivery is still in its early stages compared to global markets. DoorDash aims to improve inventory management, affordability, and matching Dashers with the right orders. The company sees a long runway for innovation and expansion in 2025 and beyond.
Will DoorDash dominate grocery delivery like it did restaurants?
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