DoorDash Inc. reported a record number of delivery orders in the second quarter, showing consumers’ commitment to takeout despite rising prices. The shares jumped about 7% in extended trading.
Customers placed 532 million orders in the quarter and the gross value of those orders rose 26% to $16.5 billion, the company said in a statement Wednesday. The increase was driven by strength in DoorDash’s core restaurant business and traction in newer categories, like convenience and groceries. The company projected gross order value of $15.8 billion to $16.2 billion in the third quarter.
San Francisco-based DoorDash enjoyed a boom in demand during the pandemic when indoor dining shuttered and people stayed home. Its share of the market for US food-delivery sales has risen to 65% as of June, according to research from Bloomberg Second Measure. DoorDash has parlayed its popularity to deliver more than just meals, an effort to generate new sources of growth.
One way DoorDash has kept customers ordering is by lowering prices. DoorDash, which launched an advertising business last year, has leveraged ads and sponsored promotions to offer customers better deals. It has also attracted more users to the app, and kept current customers spending more, through subscription service DashPass. For a monthly fee, members have access to special deals and perks like reduced delivery fees.
