DoorDash Turns in Strong Quarter as Grocery Business Grows
CFO Ravi Inukonda echoed that sentiment. “Our goal is to drive overall order frequency up. We're not trying to drive just the restaurant order frequency up or the new vertical product frequency app. In fact, looking at the order frequency on a blended basis is not how we think about the business. It's truly a cohorted business,” he explained, adding that diversified cohorts offer more options to users. “We are adding selection in restaurants. We are definitely adding more selection on the grocery side, as well as international.”
On that point, DoorDash recently announced that its services are live on more than 400 Save A Lot locations. Other newer partners include Vallarta Supermarkets, New Seasons Market, Haggen, Mother’s Market, and Jimbo’s, along with Wakefern Food Corp. banners ShopRite, Price Rite Marketplace, The Fresh Grocer, Fairway Market, Gourmet Garage, and Dearborn Market.
As grocery usage expands, so is DoorDash’s advertising arm. “Our CPG ad business is going really, really fast. I'm very pleased with the performance by the team. But again, in terms of pacing, analysts think of it as sequencing, which is the marketplace — the health of the marketplace should always come before the monetization of the marketplace,” Xu pointed out.