DoorDash saw an 18% rise in orders in Q3, hitting its first profit since 2020. The company’s new partnership with Lyft, announced Oct. 30, will provide benefits for users of both services. DoorDash expects the holiday season to boost demand further, aiming for a profitable Q4.
DoorDash reported a major milestone in Q3, reaching its first operating profit since 2020. The company saw an 18% year-over-year rise in total orders, attributed to growth across various delivery segments, including grocery and convenience items. DoorDash’s CEO, Tony Xu, emphasized that these gains reflect a broader market demand than initially anticipated, with customers making frequent, larger grocery orders through the app.
On Oct. 30, DoorDash and Lyft announced a partnership offering unique perks to shared customers. DashPass members will receive discounts and upgrades on select Lyft rides, while Lyft users can access a free three-month trial of DashPass. Xu highlighted the overlap in customer bases as a growth opportunity, aiming to keep users engaged within DoorDash’s membership program.
DoorDash expects the holiday season to drive further platform use, especially in grocery and convenience deliveries. With increasing comfort ordering groceries through DoorDash, many customers are placing larger orders with each visit. This trend points to a potential spike in Q4 profits as shoppers turn to online delivery services for holiday gatherings and essentials.
According to Xu, the Lyft partnership supports DoorDash’s broader aim of keeping users loyal through perks and exclusive benefits. Lyft's Audrey Liu noted that the partnership adds extra value to Lyft users as well, making ride-hailing more attractive. Lyft will report its own Q3 earnings on Nov. 6, with analysts watching closely to assess the partnership’s initial impact.
Could this partnership reshape the delivery market?
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