Delivery is somehow withstanding inflation
*Everything* is more expensive, but even price-conscious diners aren't ditching convenience.
When the pandemic launched delivery (generally) and third-party delivery (specifically) to new heights during the pandemic, we all wanted to know: will it stick? In the face of record inflation and continued operational challenges, we have our answer: Yep!
In respective earnings reports last week, Uber CEO Dara Khosrowshahi and DoorDash CEO Tony Xu explained, somewhat incredulously, that the companies haven’t seen any significant signs of delivery business slowdowns.
“The frequency of ordering per monthly active platform consumer remains consistent, and it remains consistent not only in the U.S. and abroad as well. So while we have looked for signals [of a slowdown], we're not seeing any signal,” Khosrowshahi said during Uber’s earnings call.
Similarly, when asked about so-called macro conditions — that is, everything [gestures wildly] that’s happening outside of his control — Xu said the company has seen “tremendous resilience” in its business. “And in spite of, I think, all of those ups, downs, sideways with some turns, our business has grown fourfold the U.S. marketplace business,” he added.
DoorDash’s revenue grew by a third in the third quarter as compared to a year ago.
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