Dive Brief:
- Delivery service provider DoorDash reported an 18% year-over-year increase in total orders in its third-quarter earnings report on Oct. 30, marking the company’s first operating profit since 2020.
- DoorDash and Lyft also announced Oct. 30 a partnership that will give members of DoorDash’s membership program discounts and upgrades on some Lyft rides and a three-month free trial to the program for Lyft account holders.
- The delivery company also expects increased use of its platform during the holidays, which it forecasts will drive strong fourth-quarter profits, Reuters reported.
Dive Insight:
DoorDash began offering delivery for grocery and convenience store products in 2020, adding to restaurant food deliveries. “For consumers, we were replenishing that middle-of-the-week run where you run out of the items that you consume the most often … or the ones that perish the most frequently,” DoorDash CEO Tony Xu said during the company’s Oct. 30 earnings call.
Xu said “that as customers get used to ordering groceries on DoorDash, they tend to order more items each subsequent visit.” He added that the company is “seeing a much bigger market than we expected.”
With respect to the Lyft partnership, Xu said that many of the ride-hail company’s passengers are also DoorDash customers. “It's a great opportunity for us to continue to add engagement to the DashPass [membership] program,” he said on the call. Audrey Liu, executive vice president of rider experience at Lyft, said in a statement that “with DoorDash, we’re continuing to give riders more reasons to choose Lyft.”
Lyft will announce its third-quarter 2024 financial results on Nov. 6 after the market close.
