DoorDash Projects Strong Demand For Food And Grocery Orders

By: Trademagazin editor Date: 2023. 02. 27. 09:06

DoorDash plans to buy back $750 million (€705.3 million) worth of stock and projected a key profit measure above analyst estimates, following strong fourth-quarter growth thanks to a surge in orders for food, groceries and pet care items.

DoorDash and its rivals such as UberEats benefited from the pandemic-led trend of people ordering in, a habit that has lingered as these companies offer deals and free deliveries with subscription passes.

DoorDash expects gross order value – the total value of all app orders and subscription fees – to rise to between $60 billion (€56.43 billion) and $63 billion (€59.25 billion) in 2023, from $53.4 billion (€50.2 billion) in 2022.

It expects adjusted EBITDA, a measure of profitability, between $500 million (€470 million) and $800 million (€752.3 million), well ahead of analysts’ expectations of $591.8 million.

The company is gaining market share in the United States, “driven by increasing scale in non-restaurant categories,” said Angelo Zino, senior equity analyst at CFRA Research.

“DoorDash is seeing sustained elevated orders in its core food delivery business, showing the stickiness of that business and the value consumers place on that service despite more challenging macro trends.”

ESM