DoorDash Sets Sights Beyond Restaurants: Report

The food-delivery app DoorDash is looking to invest some of the money it has stockpiled after a strong year to continue expanding beyond its core restaurant business by offering additional alcohol, groceries and electronics deliveries.

The San Francisco-based company reported $878 million in free cash flow in the 12 months ended Sept. 30. Chief executive Tony Xu told the Financial Times on Monday that one of the largest opportunities to invest that cash was “outside of restaurants.”

Since its founding over a decade ago, DoorDash has grown to account for 59% of the restaurant delivery market, almost double the share of its nearest competitor UberEats, the FT reported. In November, the company reported revenue of $2.2 billion in the third quarter ended Sept. 30, up 27% from $1.7 billion during the same period the prior year.

Coming off a strong year, the company has been building out its non-food-related services in recent months.

In its third-quarter earnings report, DoorDash said its advertising business has helped drive up revenue.

More recently, it has expanded partnerships with various grocers including Save Mart, Lucky, Eatly and El Super to build out its grocery-delivery offerings.

In the fall, it expanded its partnership with Aldi to offer additional alcohol delivery options.


Leave a comment

Your email address will not be published. Required fields are marked *