DoorDash’s Grip on Labor Costs is Funding New Investments

Nov 10, 2022 | Corporate Insights, No Bull Economics

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DoorDash’s delivery platform generates a 10% share of all US restaurant industry sales. The company reported that the labor market has stabilized compared to 2021 and its own labor costs benefit from higher retention rates and higher hours per existing Dasher (which means less acquisitions of new drivers). Notably, Dashers earned $25B from 1Q20 – 3Q22.

Strong growth in total transaction volume (Marketplace GOV includes order dollar amounts, delivery fees & tips) is helping to fuel growth in its contribution profit, particularly in the US. These profits will be used to fund new investments (like its recent acquisition of Wolt in Europe) which includes plans to expand into non-restaurant categories (including new partnerships with: Loblaw Companies Limited, Sprouts Farmers Market, Dick’s Sporting Goods, EG America, Grocery Outlet, Giant Eagle, Big Lots, The Raley’s Companies & Tractor Supply Co. 

Doordash Financials
Doordash Financials

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