DoorDash’s share rose more than 7% after crashing more than 10%. Previously, the company encountered all-time-low stock fall as much as 35%. Based on third party data DoorDash has regained market share. The growth information was from a DoorDash company executive in a letter to investors. According to YipitData based on the email, the company is indeed growing its market share.
The company’s competitors in the delivery market share in the U.S. are also struggling. DoorDash has 57% of the delivery market share. Its competitors like Uber Technologies Inc. HAS -4.52% Uber Eats. Just Eat Takeway.com owns -11.69%. Meanwhile, Grubhub has 31% and 11% respectively. Tony Xu, DoorDash Chief Executive and Prabir Adarkar Chief Financial Officer said that the firm will remain steady for pandemic recovery.
Adarkar is positive that DashPass membership frequencies are at all-time highs. He is confident that it proves the platform’s resilience. Xu also agrees that merchants preferred DoorDash as a way to gain sales although people continue visiting restaurants. Adarkar argued the company is different from ride-hailing firms.
DoorDash does not encounter any supply issues. The company even acquiring new Dashers is the lowest in the last four quarters. So, they do not compete with the rideshare for Dashers. Previously, DoorDash reported that the company faced a first-quarter net loss of $159m. It was equal to 48 cents a share. In comparison with around a year ago, the company faced a loss of $110m, or 34 cents a share.
To sum up, the revenue increased to $1.46bn from $1.08bn in the year-ago quarter. FactSet survey predicted loss of 21 cents a share on revenue of $1.3bn. In this case the company does not adjust earnings per share. In the second quarter, DoorDash expects gross-order value between $12.1bn and $12.5bn.
