Doordash’s latest financial results showcase its dominance in the U.S. restaurant delivery sector, controlling roughly two-thirds of the market amidst rivals like Uber Eats and Grubhub. This success has boosted its stock price to over $250 per share, with a market capitalization of around $108 billion, reflecting a doubling of share value in the past year. The company’s first annual profits position it well for future growth.
In 2023, Doordash has made significant strides beyond food delivery, notably with two key acquisitions. It plans to expand its presence in the U.K. by acquiring three major meal delivery services and has acquired hospitality software company 7rooms for $1.2 billion. This move is part of a broader strategy to enhance operational capabilities for restaurants and hotels.
Additionally, Doordash’s $175 million purchase of advertising startup Symbiosys aims to strengthen its advertising business, which has reportedly crossed $1 billion in annual revenue. The company is forging partnerships across various retail sectors, broadening its service offerings.
Despite its ambitious expansion plans, CEO Tony Xu emphasized that the core restaurant delivery segment still has substantial growth potential, given that Doordash represents only a small fraction of U.S. restaurant sales and a smaller percentage globally.
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