DoorDash Performs Well Because of Inflation-resistant Takeout Demand

In the third quarter, food delivery startup DoorDash Inc.'s orders reached a new high as demand remained strong despite rising prices and inflation, helping it to surpass Wall Street's revenue estimates and sending its shares 10% higher on Thursday.

Many continue to purchase food online from the comfort of their own homes, as they did during lockdowns, despite the fact that dining out is back in full swing.

According to a business official, though, DoorDash has observed a little impact from recession-aware clients purchasing fewer items each transaction.

The company achieved 439 million orders and a 30% rise in gross order value to $13.53 billion during the quarter. The gross order value is the sum of all app purchases and subscription payments.

In addition to the food industry, grocery stores, convenience stores, and retail all performed well. "Retail and supermarket partnerships will be a growth driver for DoorDash, giving the potential for a higher average order value," said Third Bridge analyst Nicholas Cauley. DoorDash estimated a fourth-quarter gross order value between $13.9 billion and $14.2 billion and confirmed its full-year forecast for the industry's most crucial metric.

The parent company of UberEats, Uber Technologies (NYSE:UBER), said on Tuesday that the number of active drivers has returned to September 2018 levels.

Driver shortages have not hurt DoorDash, with the exception of the first quarter of 2021, when the U.S. government distributed its second round of stimulus checks to help people cope with the pandemic. According to IBES data from Refinitiv, the company's third-quarter revenue climbed by 33% to $1.70 billion, exceeding analysts' forecasts of $1.63 billion. However, the company's net loss of $295 million, or 77 cents per share, exceeded expectations.