While restaurant growth “slightly” increased, larger results were posted in DoorDash’s non-restaurant business, which includes deliveries from grocery and convenience stores. Gains in non-restaurant categories reported “significantly higher” YoY results compared to advancements in the restaurant category, according to the filing.
Despite progress in the non-restaurant category, DoorDash founder and CEO Tony Xu on an May 4 earnings call with investors said grocery delivery offerings still had room to develop . For example, U.S. online grocery delivery penetration compared to online restaurant food penetration is multiple times lower.
“Because the offline experience is still superior to the online experience, which means we have a long way to go to making sure that we can make the quality of the experience perfect,” Xu said. “Meaning, you get exactly what you order that you can get it from all the places that you want to delivery from and that the prices are affordable or what you expect to pay in store. And I think there's a long way to go between where we are today and where we will be in the future.”
DoorDash has worked to grow its non-restaurant offerings, expanding by adding grocery, convenience stores and other retailers. Earlier this year, it partnered with value grocery chain Aldi, and other grocery partnerships include Albertsons, Giant Eagle, Weis Markets, Sprouts Farmers Market, The Raley’s Companies and Southeastern Grocers. Additionally, the company’s 2023 Super Bowl advertisement focused on its role in the grocery delivery space.