More People Than Ever Are Ordering From DoorDash, Latest Report Shows
It's no secret that the pandemic has impacted takeout and delivery services since its onset. Although the restaurant industry suffered in 2020, it has since creatively adapted to the widespread demand for grab-and-go. Indeed, takeout and delivery have skyrocketed and are at the forefront of contemporary dining priorities. When it comes to offering food-to-go, third-party services like DoorDash, Uber Eats, and Grubhub have changed the game. They've also come with their fair share of controversy. According to CNN, many restaurants view third-party delivery services as overly expensive. DoorDash and the like have been called out by local businesses for taking a significant percentage of restaurant profits via high delivery fees.
The financial implications of third-party services are surely debatable, but it's undeniable that DoorDash has become increasingly convenient for the modern customer. The company's statistics back up this claim of ever-surging popularity. In May, DoorDash reported a rise in consumers who utilize third-party takeout or delivery services. The findings showed that 24% of people begin their food searches on third-party delivery platforms. Although fewer people are ordering takeout thanks to inflation, DoorDash's second quarter findings reflect ongoing growth. The company's recent data shows a better-than-expected revenue, as well as an overall upward trajectory.
When it comes to delivery, DoorDash is full-speed ahead
The orders speak for themselves. According to the DoorDash report, DoorDash's total number of delivery orders increased by 23% from 2021 to 2022. This rise amounts to a total of roughly 426 million orders. That's a lot of takeout — and from all kinds of restaurants. Similarly, the year thus far has seen a climb in revenue. Revenue increased by 30% on a year-to-year basis, amounting to $1.6 billion, stated DoorDash. This growth exceeded expectations. As reported by CNBC, analysts anticipated that DoorDash would bring in $1.52 billion.
Yet while the trends are currently in DoorDash's favor, the rise of inflation may adversely affect takeout services. DoorDash acknowledged that the next few months could see less spending from consumers. DoorDash predicts that its adjusted EBITDA — earnings before interest, taxes, depreciation, and amortization — will be "between $25 and $75 million in the third quarter," per CNBC. Its current EBITDA of $103 million marks a slight decrease from 2021's second quarter result of $113 million (via the DoorDash report).
As DoorDash enters its next quarter, third-party delivery services will continue to offer access to a range of eateries, with options available from DoorDash's wheels — and at your fingertips.