Food delivery DoorDash works well, even after restaurants open

Restaurant food delivery service DoorDash Inc. (DASH) has been doing well during restaurant closures due to the pandemic. For this reason, many investors believed that with the return of restaurants to the whole operation, the demand for delivery would fall. However, 2021 showed that the fears were not justified: delivery and restaurants coexist. 

At the same time, DoorDash continues to increase sales even compared to a successful 2020. In the fourth quarter of 2021, DoorDash increased the number of orders by 35% year-on-year, indicating that her services are still in demand despite the opening of restaurants. In addition, the company has always offered a service other than traditional restaurant services; the pandemic accelerated the trend and helped form new consumer habits. 

Thanks to this, the monthly number of active DoorDash users currently exceeds 25 million, which is 22% more year on year. DoorDash’s revenue in the fourth quarter was $1.3 billion, slightly higher than Wall Street analysts’ expectations. The total number of orders in the quarter exceeded 369 million against the forecast 360 million. Diluted loss per share reached $0.45. An essential factor in the growth of DoorDash is the expansion of the range of delivery services. 

Now it’s not only food from restaurants, but also food from stores and even alcohol. The company is also negotiating with local stores to offer them the delivery of local parcels to customers. DoorDash is operating positively as US consumer spending on food increases. As one of the most popular delivery networks, DoorDash will primarily benefit from revenue growth.