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Business Insider
7 days ago
- Business
- Business Insider
DoorDash CEO says he gets hundreds of emails weekly from customers and workers. They show it has work to do.
When asked Wednesday during DoorDash's earnings call about challenges facing the company, Xu pointed to the emails he gets daily from restaurants, gig workers, and customers. Many of them point out areas where DoorDash is "falling short," Xu said. "I get several hundred emails a week from all of our audiences, whether it's consumers, Dashers, or merchants," Xu said. "And I don't know if they think that our improvements are very impressive." Xu said he received an email on Wednesday morning that complained that a DoorDash delivery driver had shown up to the wrong parking lot at an apartment building. "That caused a delay in delivery as well as a fear that perhaps the driver wasn't even going to show up," Xu said. Xu said those kinds of issues highlight areas where the company needs to do better. "Every day, I think, is a daily struggle, where the job is to try to make an improvement for that day," Xu said. While Xu said some see room for improvement, Wall Street seems generally pleased with DoorDash's growth. The company reported on Wednesday its second-quarter earnings, which largely beat analysts' expectations, and its revenue grew 25% year over year. The company has also been expanding with two acquisitions worth over $1 billion this year: UK delivery startup Deliveroo and restaurant booking service SevenRooms. Emails are one way that Xu has said he keeps track of what using DoorDash is like for the millions of people who use the delivery app. Xu has previously said that he has made DoorDash deliveries himself through WeDash, a program in which corporate employees work as Dashers — the company's lingo for delivery workers. This experience has led Xu and others to identify areas of improvement for DoorDash, such as fixing bugs in the app or improving the accuracy of wait times. Uber CEO Dara Khosrowshahi has also moonlighted as a ride-hailing driver and delivery worker for the app he helms. Once when he was on the receiving end of "tip baiting," which is when a customer offers a driver a big tip upfront only to take it away after delivery. David Risher, the CEO of Lyft, told Business Insider that he also drives for the ride-hailing service about every six weeks.
Yahoo
07-08-2025
- Business
- Yahoo
DoorDash (DASH) Turns Profit With Q2 Sales Reaching US$3,284 Million
DoorDash saw its share price surge by 41% over the last quarter, significantly outperforming the broader market, which remained flat over the same period. The company's impressive Q2 earnings, showcasing a shift from a net loss to a net income of $285 million, likely played a major role in boosting investor confidence. Additionally, innovations such as the launch of a drone delivery service and AI-powered ad tools may have reinforced positive sentiment. Despite being dropped from several Russell indices, these strategic advancements positioned DoorDash favorably amid broader market apprehensions around tariffs and economic health. Be aware that DoorDash is showing 2 weaknesses in our investment analysis. Find companies with promising cash flow potential yet trading below their fair value. DoorDash's recent initiatives, highlighted in the introduction, are likely to impact its long-term growth narrative, emphasizing the strategic acquisitions of Deliveroo and SevenRooms. These moves aim to enhance its international presence and expand restaurant services, with potential upside in revenues and profit margins. Over the last three years, DoorDash has achieved a total shareholder return of 231.34%, reflecting a very large increase, which provides context to its current market positioning despite the broader industry's fluctuations. In comparison, the company outperformed both the US hospitality industry and broader market over the past year, showcasing its robust market performance. The developments in drone delivery and AI-powered ad tools may further optimize operational efficiency and consumer engagement, feeding into revenue and earnings growth. However, the current share price of US$258.08 is marginally above the consensus analyst price target of US$244.5, suggesting that, despite recent gains, some market participants may consider DoorDash slightly overvalued in the context of anticipated earnings improvements and existing assessments. The transformative news and financial forecasts suggest potential for continued revenue and earnings evolution, aligning with the company's trajectory towards sustained value creation. Click to explore a detailed breakdown of our findings in DoorDash's financial health report. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include DASH. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
Yahoo
28-06-2025
- Business
- Yahoo
Raymond James Upgrades DoorDash (DASH) Stock, Lifts PT
DoorDash, Inc. (NASDAQ:DASH) is one of the 10 Unstoppable Stocks to Buy According to Hedge Funds. On June 23, Raymond James analyst Josh Beck upgraded DoorDash, Inc. (NASDAQ:DASH)'s stock to 'Strong Buy' from 'Outperform' with a price target of $260, an increase from $215. This upgrade comes on the heels of an underappreciated valuation amidst consideration of the Deliveroo acquisition. The firm's analyst expects the acquisition to result in a mid-teens increase in DoorDash, Inc. (NASDAQ: DASH)'s EBITDA by 2026 and high teens by 2027. Furthermore, the synergies, together with elevated investment in advertising, operational performance, and future benefits coming from autonomous technology, can fuel the company's stock. A shot of a delivery driver zooming down a busy street, symbolizing the company's quick and efficient delivery services. Apart from this, DoorDash, Inc. (NASDAQ:DASH) has made an acquisition of NYC-based software company, Seven Rooms, and ad platform, Symbiosys. DoorDash, Inc. (NASDAQ:DASH) expects that both SevenRooms and Deliveroo can expand its ability to build world-class services, thereby, increasing its potential to grow local commerce and help with financial goals. In Q1 2025, its total orders saw an increase of 18% YoY to 732 million, and marketplace GOV rose 20% YoY to $23.1 billion. The YoY growth in total orders was due to growth in consumers and average consumer engagement. For Q2 2025, DoorDash, Inc. (NASDAQ:DASH) expects marketplace GOV of between $23,3 billion – $23.7 billion, and adjusted EBITDA of $600 million – $650 million. Sands Capital, an investment management company, released its Q1 2025 investor letter. Here is what the fund said: 'DoorDash, Inc. (NASDAQ:DASH) is the leading food delivery platform in the United States by market share. The business exceeded investor expectations in its most recently reported quarter, demonstrating continued strong execution. Orders grew 19 percent year-over-year, supported by 14 percent growth in monthly active users, while adjusted EBITDA rose 56 percent. First-quarter 2025 guidance was better than consensus expected, calling for 20 percent gross order volume growth. Our investment case continues to play out, and we continue to believe that consensus underestimates DoorDash's longer-term earnings power.' While we acknowledge the potential of DASH to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than DASH and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now Disclosure: None. Sign in to access your portfolio
Yahoo
16-06-2025
- Business
- Yahoo
DoorDash purchases hospitality tech company SevenRooms
Online food ordering and delivery platform DoorDash has concluded the acquisition of the hospitality software provider SevenRooms. The US-based food delivery company states that the deal will bolster in-store sales, customer relationships and profitability for merchants by adding SevenRooms' CRM, reservations and guest experience tools to the DoorDash commerce platform. In May 2025, DoorDash agreed to acquire New York City-based SevenRooms for $1.2bn and UK competitor Deliveroo for £2.9bn ($3.8bn). SevenRooms will benefit from DoorDash's scale, resources and global reach. The company's leadership will join DoorDash to further develop its offerings. DoorDash vice-president of strategy and operations Parisa Sadrzadeh stated: 'We're building a platform that makes it easier for local businesses to grow — whether that's through delivery, pickup, reservations or in-person hospitality.' 'These capabilities reflect DoorDash's focus on empowering local businesses to deepen their relationships with customers, however they choose to connect - whether that's going out, ordering in or engaging through a merchant's own online stores. With SevenRooms, we will be able to keep supporting an open, partner-friendly ecosystem.' SevenRooms co-founder and head Joel Montaniel stated: 'We're excited to accelerate our mission to help hospitality operators around the world understand their guests, build deeper relationships and grow their businesses sustainably.' 'Together with DoorDash, we're providing restaurants and hospitality businesses with the tools to own their guest experience, grow their customer base and thrive both inside and outside their four walls. With shared core values, we're energised for our shared future as we bring continued innovation to market faster through a merchant-centric approach.' The acquisition comes shortly after DoorDash purchases ad tech startup Symbiosys for $175m, aimed at expanding its offsite advertising capabilities. Symbiosys offers a self-serve platform that allows advertisers to launch campaigns across channels including search, social, and display, while leveraging DoorDash's closed-loop measurement system. "DoorDash purchases hospitality tech company SevenRooms" was originally created and published by Verdict Food Service, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Bloomberg
27-05-2025
- Business
- Bloomberg
DoorDash Seeks $2 Billion in Convertible Bond After Deal Spree
DoorDash Inc. is raising $2 billion from the sale of convertible bonds, less than a month after the US' largest food-delivery service announced a pair of sizable deals to expand its global footprint. The company plans to use the proceeds of the five-year note offering for purposes including potential acquisitions and buybacks, as well as hedging transactions related to the deal, according to an announcement Tuesday. DoorDash agreed to buy London-based delivery operator Deliveroo Plc for about $3.9 billion and hospitality tech company SevenRooms Inc. for $1.2 billion, separate announcements on May 6 showed.
