DoorDash sees record orders and users, but losses grow

Feb 16, 2023, 2:44 PM | Updated: 4:31 pm
FILE - The DoorDash app is shown on a smartphone on Feb. 27, 2020, in New York. DoorDash said Thurs...

FILE - The DoorDash app is shown on a smartphone on Feb. 27, 2020, in New York. DoorDash said Thursday, Feb. 16, 2023, that it saw a record number of orders and active users in the fourth quarter as it expanded overseas and gained market share at home. (AP Photo, File)

(AP Photo, File)

DoorDash said Thursday that it saw a record number of orders and active users in the fourth quarter as it expanded overseas and gained market share at home.

The San Francisco-based delivery company said its monthly active users grew 28% to a record 34 million during the October-December period. DashPass members __ who pay $9.99 per month for free delivery on most orders __ grew 50% to 15 million.

DoorDash’s gross order value __ or the total of all orders on its platform __ rose 29% to an all-time high of $14.4 billion. That beat Wall Street’s forecast of $14 billion, according to analysts polled by FactSet.

Some of that growth came from Wolt Enterprises, the Finnish delivery service DoorDash acquired last year for $8.1 billion. Wolt operates in 22 countries where DoorDash previously had no presence, including Germany, Sweden, Hungary and Israel.

But Ravi Inukonda, DoorDash’s vice president of finance __ who was named chief financial officer on Thursday __ said DoorDash is also growing in the U.S., where its market share has climbed to near 60%. Excluding Wolt, DoorDash’s gross order value rose 20% to $13.4 billion.

Inukonda said DoorDash has confidence in its outlook this year because the company has grown despite inflation and economic headwinds. DoorDash expects gross order value between $60 billion and $63 billion this year, up from $53.4 billion in 2022.

“Food is relatively inelastic. People need to do that grocery shopping,” he said. “And we have a product and service that people love.”

Total orders grew 27% to 467 million. That beat Wall Street’s forecast of 459 million, according to analysts polled by FactSet. Fourth quarter revenue jumped 40% to $1.82 billion, also ahead of analysts’ forecast of $1.77 billion.

But profits remain elusive for the 10-year-old company. DoorDash said its net loss widened to $640 million, or $1.65 per share, as it expanded into new categories __ like a recently announced partnership with the beauty product store Sephora __ and integrated Wolt into its operations.

Wall Street had expected a loss of 67 cents per share.

DoorDash’s stock-based compensation costs rose and its research and development costs nearly doubled in the fourth quarter. Its net income was also impacted by restructuring charges. The company announced in December that it was laying off 1,250 workers __ or 6% of its workforce __ because it hired too many people when sales surged during the pandemic.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


(Facebook Photo/Superior Court of Arizona in Yavapai County)...
Associated Press

Arizona judge has cases reassigned following DUI arrest

The Arizona Supreme Court has ruled that all cases currently assigned to a Yavapai County Superior Court judge recently arrested on suspicion of extreme DUI will be reassigned to other judges.
3 days ago
Haitian migrant Gerson Solay, 28, carries his daughter, Bianca, as he and his family cross into Can...
Associated Press

US, Canada to end loophole that allows asylum-seekers to move between countries

President Joe Biden and Canadian Prime Minister Justin Trudeau on Friday announced a plan to close a loophole to an immigration agreement.
6 days ago
Expert skateboarder Di'Orr Greenwood, an artist born and raised in the Navajo Nation in Arizona and...
Associated Press

Indigenous skateboard art featured on new stamps unveiled at Phoenix skate park

The Postal Service unveiled the “Art of the Skateboard" stamps at a Phoenix skate park, featuring designs from Indigenous artists.
6 days ago
(Facebook Photo/City of San Luis, Arizona)...
Associated Press

San Luis authorities receive complaints about 911 calls going across border

Authorities in San Luis say they are receiving more complaints about 911 calls mistakenly going across the border.
12 days ago
(Pexels Photo)...
Associated Press

Daylight saving time begins in most of US this weekend

No time change is observed in Hawaii, most of Arizona, Puerto Rico, the U.S. Virgin Islands, American Samoa, Guam and the Northern Marianas.
20 days ago
Mexican army soldiers prepare a search mission for four U.S. citizens kidnapped by gunmen in Matamo...
Associated Press

How the 4 abducted Americans in Mexico were located

The anonymous tip that led Mexican authorities to a remote shack where four abducted Americans were held described armed men and blindfolds.
20 days ago

Sponsored Articles

(Photo by Michael Matthey/picture alliance via Getty Images)...
Cox Communications

Valley Boys & Girls Club uses esports to help kids make healthy choices

KTAR’s Community Spotlight focuses on the Boys & Girls Club of the Valley and the work to incorporate esports into children's lives.
Day & Night Air Conditioning, Heating and Plumbing

Company looking for oldest air conditioner and wants to reward homeowner with new one

Does your air conditioner make weird noises or a burning smell when it starts? If so, you may be due for an AC unit replacement.
Fiesta Bowl Foundation

Celebrate 50 years of Vrbo Fiesta Bowl Parade magic!

Since its first production in the early 1970s, the Vrbo Fiesta Bowl Parade presented by Lerner & Rowe has been a staple of Valley traditions, bringing family fun and excitement to downtown Phoenix.
DoorDash sees record orders and users, but losses grow