📈 Strong Q3 Performance
DoorDash posted a robust Q3, with total orders up 18% year-over-year to 643M, pushing gross order value to $20B, up 19%. Revenue reached $2.7B, marking a 25% year-over-year increase. The company beat earnings estimates, reporting $0.38 per share, surpassing the projected $0.21 per share. DoorDash’s CEO Tony Xu remarked on the strong grocery delivery growth, saying, “We're pretty excited about what we’re seeing in grocery,” noting an innovative approach to middle-of-the-week grocery deliveries.
🚗 Partnership with Lyft
DoorDash announced a strategic partnership with rideshare company Lyft, offering benefits for both platforms’ users. Lyft users can enjoy 5% off on-demand rides, 10% off airport rides, and a DashPass trial for free delivery perks. This collaboration follows DoorDash’s recent partnerships, including a September agreement with Max streaming and an August deal with Chase. “It’s a great opportunity to add engagement to DashPass and gain access to Lyft’s user base,” said Xu.
🎉 DashPass Milestone
DoorDash’s loyalty program, DashPass, reached over 18M members in Q3, making it one of the largest in the delivery market. CFO Ravi Inukonda pointed to strong adoption across both urban and suburban areas, which led to higher engagement and share gains. Xu described DashPass as “the highest frequency program of its kind when it comes to consumer membership programs,” reinforcing DoorDash’s commitment to a strong customer experience.
🤖 Autonomous Delivery Hurdles
CEO Tony Xu addressed DoorDash’s research into autonomous delivery, a field the company has explored since 2017. Though the technology shows promise, Xu noted practical challenges. “The last 10 feet is actually quite tricky,” he said, explaining the difficulty in item loading and unloading for autonomous vehicles. As DoorDash continues exploring tech solutions, large-scale autonomous deliveries remain a distant prospect.
Will DoorDash’s Lyft deal outpace Uber Eats’ growth?
