DoorDash Exceeds Q3 Estimates and Announces Partnership with Lyft

DoorDash has reported a robust performance in its third quarter, surpassing estimates with an 18% increase in total orders, reaching 643 million, and a 19% rise in the total dollar value of orders, amounting to $20 billion. The San Francisco-based delivery service exceeded consensus earnings expectations, reporting earnings of $0.38 per share on revenue of $2.7 billion, a 25% year-over-year increase. This was notably above the anticipated $0.21 per share on $2.66 billion in revenue.

CEO Tony Xu expressed enthusiasm about the company’s grocery delivery segment, noting that when DoorDash began offering grocery services four years ago, it provided an easy solution for customers needing mid-week replenishments. He highlighted the platform’s user-friendly nature for consumers and its effectiveness in onboarding grocery partners.

Additionally, DoorDash announced a new partnership with rideshare company Lyft, which allows users of both platforms to enjoy mutual benefits. Lyft users will receive a 5% discount on on-demand rides and 10% off scheduled airport rides (up to four per month), as well as two monthly priority pickup upgrades and a three-month free trial of DashPass, DoorDash’s loyalty program.

This collaboration comes on the heels of Instacart’s recent partnership with Uber Eats, indicating a competitive trend in the delivery space. Xu emphasized that the partnership with Lyft presents a valuable opportunity to enhance engagement within the DashPass program while providing Lyft access to DoorDash’s extensive local commerce platform.

DoorDash also noted a milestone of over 18 million DashPass members, with significant growth observed across both urban and suburban areas. CFO Ravi Inukonda reported that this broad appeal contributes to the company’s overall market share gains.

Moreover, Xu touched on the future potential of autonomous vehicles for deliveries, acknowledging the complexities involved in loading and unloading for item deliveries compared to passenger transport.