DoorDash Revenue Triples as Pandemic Drives Diners to Order In
By Preetika Rana
DoorDash Inc.'s revenue in the fourth quarter more than tripled
from a year ago, as the company continued to benefit from the
coronavirus pandemic and the rapid adoption of food delivery
throughout the country.
The delivery platform on Thursday said it logged $970 million in
revenue over the last three months of 2020, up from nearly $300
million over the same period in 2019.
The results show DoorDash emerging as a high-profile winner from
the coronavirus pandemic, even when compared with its rivals in the
same sector. DoorDash's U.S. market share stood at 53% in January,
up from 35% a year earlier, according to Edison Trends, taking
business from rivals Grubhub Inc. and Uber Technologies Inc.'s Uber
The rapid growth came with a larger-than-expected loss of $312
million, compared with the $202 million that analysts surveyed by
FactSet were expecting in the eight-year-old company's first
earnings report since its December initial public offering.
In coming months, the company said it expects its financial
results to be hit by various regulations around the country,
including a measure in California supported by the food delivery
company that gives workers some additional benefits.
The company said it expects earnings between zero and $200
million in earnings before accounting for taxes, interest and other
costs, compared with analyst projections of $246 million.
The company's stock traded down more than 7% in early
Write to Preetika Rana at email@example.com
(END) Dow Jones Newswires
February 25, 2021 17:23 ET (22:23 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.