Consumers have grown accustomed to the convenience of ordering food from home following the two-year global pandemic, fueling sales for DoorDash, which said it did not expect Americans to switch from eating at home to eating out.
DoorDash now expects total order value — the total value of all app orders and subscription payments — to be approximately $51.53 billion in 2022, compared to a previously estimated $49.51 billion.
The U.S. food delivery company saw a spike in active users and order frequency, which helped beat Wall Exchange estimates for revenue and hit a record 426 million orders in the second quarter.
As a nationwide labor shortage rocked businesses across all industries and created a shortage of delivery drivers, DoorDash was able to add more users by offering more flexibility.
The San Francisco-based company said its organic acquisition rate of DoorDash drivers — known as Dashers — hit an all-time high in the quarter.
Its rival and owner of Uber Eats, Uber Technologies Inc, issued similar comments on Tuesday, saying the company added more delivery agents and drivers in the quarter, bringing the total number to a record of around 5,000,000.
Doordash’s revenue rose 30% to $1.6 billion in the three months ended June 30, while analysts polled by Refinitiv were expecting $1.52 billion.
Even so, the company posted a net loss of $263 million, or 72 cents per share, in the quarter due to higher investments in expanding internationally and in non-food categories.