Door Dash results are out and it is down more than 12%. It's not because of the headline numbers here uh at least not because of the topline revenue. Revenue did beat uh at uh 3.45% billion versus 3.36% uh expected.EPS missed 55 cents versus 69 cents expected. And there's a wrinkle here in what uh Door Dash is is leading investors to think about going forward. First to give you a couple more numbers.Total orders were up 21% yearonear uh to 776 million versus 770 million expected. So uh the core business loo ...

Core Insights - DoorDash's stock fell over 12% despite beating revenue expectations, with reported revenue of $3.45 billion compared to the expected $3.36 billion [1] - Earnings per share (EPS) missed expectations, reporting 55 cents versus the anticipated 69 cents [1] Financial Performance - Total orders increased by 21% year-over-year, reaching 776 million, surpassing the expected 770 million [2] - The core marketplace business grew by 25% year-over-year, also exceeding expectations [2] Future Investments - DoorDash plans to invest several hundred million dollars more in new initiatives and platform development in 2026 compared to 2025 [3] - The company is increasing its investment in Deliveroo, expecting it to contribute approximately $45 million to adjusted EBITDA in Q4 2025 and about $200 million in 2026 [3] - The growth of Deliveroo is reportedly faster than previously expected [3] Profitability Concerns - The company has not provided detailed information on profitability, contributing to the decline in stock price [4]

Shares of DoorDash Inc. tumbled in extended trading Wednesday after the delivery platform said it plans to increase investments in its business next year and that its recent acquisition of Deliveroo w... ...

Core Viewpoint - DoorDash is expected to outperform Uber in free cash flow, driven by strong U.S. cash generation, international expansion through Deliveroo, and the acquisition of SevenRooms, with anticipated double-digit growth in gross order value (GOV) and margins as uncertainty in the rideshare sector increases [1][7]. Company Positioning - DoorDash holds the leading position in the U.S. food delivery market with over 60% market share and consistent growth in its core restaurant segment [2][4]. - The company is reinvesting strong free cash flow from U.S. restaurants into long-term initiatives, including new verticals and international expansion [3][4]. Acquisition Strategy - Recent acquisitions, particularly Deliveroo, are expanding DoorDash's addressable market, enhancing its reach in Western Europe and the Middle East [4][5]. - The appointment of Wolt's CEO at Deliveroo is expected to streamline integration and improve operational efficiency [5]. Growth Projections - DoorDash's GOV is projected to compound at approximately 17% annually from 2025 to 2030, with EBITDA expected to grow around 27% per year over the next five years [6]. - The company is anticipated to achieve a free cash flow growth rate of about 30% over the next five years, compared to Uber's estimated 16% [7]. Market Dynamics - The local delivery market is consolidating around a few global leaders, creating profit pools in major markets that can enhance customer value and investment opportunities [5].

Core Viewpoint - DoorDash is expected to outperform Uber in free cash flow, driven by strong U.S. cash generation, international expansion led by Deliveroo, and the acquisition of SevenRooms, with anticipated double-digit growth in gross order value (GOV) and margins as uncertainty in the rideshare sector increases [1][7]. Company Positioning - DoorDash holds over 60% market share in the U.S. food delivery sector, showing consistent growth in its core restaurant business [2]. - The company is reinvesting strong free cash flow from U.S. restaurants into long-term initiatives, including new verticals and international expansion [3]. Acquisition Strategy - Recent acquisitions, particularly Deliveroo, are expanding DoorDash's addressable market, enhancing its presence in Western Europe and the Middle East [4]. - The analyst anticipates that DoorDash will reinvest profits to scale operations, focusing on customer acquisition and enhancing subscription services to increase order frequency [4]. Leadership and Market Dynamics - The appointment of Wolt's CEO, Miki Kuusi, at Deliveroo is expected to streamline integration and alleviate concerns regarding U.S. leadership involvement [5]. - The local delivery market is consolidating around a few global leaders, creating profit pools in major markets that can support better customer value and investment [5]. Growth Projections - DoorDash's GOV is projected to compound at approximately 17% annually from 2025 to 2030, with steady margin improvements and EBITDA growth of about 27% per year over the next five years [6]. - The analyst estimates that DoorDash's free cash flow will grow at around 30% over the next five years, compared to approximately 16% for Uber, suggesting a higher valuation multiple for DoorDash [7].

Core Insights - DoorDash's stock price has seen a significant increase of 3.88%, marking three consecutive days of gains and reaching a new historical high [1] - The company has entered into a strategic partnership with Criteo to enhance advertising opportunities in the retail media sector, leveraging both companies' technological strengths for deeper integration in the digital advertising market [1] - DoorDash has completed the acquisition of UK competitor Deliveroo for approximately £2.9 billion, expanding its presence in the European market while allowing Deliveroo to operate as an independent brand [1] Technological Innovations - DoorDash has launched its first autonomous delivery robot, Dot, designed to improve local delivery experiences with efficient autonomous driving capabilities and the ability to handle diverse delivery tasks [2] - The introduction of Dot reflects DoorDash's ambition in the unmanned delivery sector and its commitment to enhancing delivery efficiency [2] Investment Considerations - DoorDash's diversified strategy and technological innovations indicate strong growth potential [2] - Investors are advised to monitor competitive dynamics in international markets and the practical application of technological developments, as these factors will directly impact DoorDash's long-term market performance [2]

Group 1: Autonomous Delivery Initiatives - DoorDash has launched Dot, a compact robot for autonomous delivery, capable of navigating at speeds up to 20 mph [1] - Dot can carry up to 30 pounds, equivalent to six pizza boxes, and is equipped with eight cameras and three lidar sensors for complex environments [2] - The company is testing Dot in Phoenix and Mesa, Arizona, with plans for future expansion [2] Group 2: Technology and Operational Enhancements - DoorDash introduced an Autonomous Delivery Platform that uses AI to optimize order dispatching between human Dashers and robots [3] - The company emphasizes that human Dashers will still manage most deliveries, with robots supplementing during peak times [4] - A new feature called SmartScale has been launched, reducing missing item complaints by up to 30% during testing [4] Group 3: Competitive Landscape and Strategic Moves - The autonomous delivery sector is characterized by high costs and regulatory challenges, with competitors like Uber opting for partnerships instead of in-house development [5] - DoorDash has acquired Deliveroo, enhancing its international presence and competitive position in the local commerce market [6] - Deliveroo will operate independently while benefiting from DoorDash's resources and scale [6] Group 4: New Features and Customer Engagement - DoorDash has introduced a feature called Going Out, allowing users to make restaurant reservations through its app without cover fees [7] - This service integrates with SevenRooms and rewards users with credits for future orders for each booking made [7]

Core Points - DoorDash has completed the acquisition of UK rival Deliveroo for £2.9 billion ($3.8 billion) under a court-approved scheme of arrangement [1][2] - Deliveroo shareholders will receive 180p in cash for each share held as part of the acquisition agreement [2] - The merger is expected to enhance DoorDash's position as a global leader in local commerce [1] Company Overview - Deliveroo operates in multiple countries including Belgium, France, Ireland, Italy, Kuwait, Qatar, Singapore, the UAE, and the UK [2] - The company partners with approximately 176,000 restaurants, grocery, and retail outlets, and employs over 130,000 riders [3] - Deliveroo reported around seven million monthly active users in 2024 and generated revenue of £2 billion with an adjusted EBITDA of £140 million for the year ending December 31, 2024 [3] Leadership Changes - Will Shu, the founder and CEO of Deliveroo, has stepped down, and Miki Kuusi, currently the Head of International at DoorDash, has been appointed as the new CEO of Deliveroo [4]

Group 1 - On October 1, during the National Day and Mid-Autumn Festival holiday, China's railway system sent a record 23.132 million passengers, with an expected 19.3 million on October 2, highlighting a significant increase in travel demand during the 8-day holiday period [2] - Berkshire Hathaway has finalized a $9.7 billion cash deal to acquire Occidental Petroleum's chemical business, OxyChem, with Occidental planning to use $6.5 billion of the proceeds to reduce its debt [2] - The China-Europe trade cooperation is being strengthened as the China Council for the Promotion of International Trade has approved 373 exhibition projects for Chinese enterprises in Europe this year, covering over 210,000 square meters [3] Group 2 - The Hang Seng Index closed up 1.61% at 27,287.12 points, with the Hang Seng Tech Index rising 3.36%, both reaching new highs. Semiconductor stocks surged, with SMIC up over 12% and NIO up over 6% [4] - A total of 231 Hong Kong-listed companies repurchased 5.657 billion shares this year, with a total repurchase amount of HKD 136.7 billion, led by the internet technology and financial sectors [4] - The "M&A Six Guidelines" have led to a rise in industrial mergers and acquisitions, particularly in strategic emerging industries like semiconductors, with the total announced transaction volume expected to approach historical highs by 2025 [5] Group 3 - Foreign investment institutions have shown increased interest in Chinese tech stocks, with 23 companies attracting visits from 10 or more foreign institutions in September, indicating a growing focus on high-tech enterprises [5] - Bank of America reported that many investors are optimistic about a sustained rebound in the Chinese stock market, driven by low valuations and innovative potential [6] - Morgan Stanley noted that global investor interest in Chinese stocks is rising as corporate earnings stabilize and the tech sector expands [6] Group 4 - On October 1, highway charging facilities in China recorded a total charging volume of 17.4858 million kWh, a year-on-year increase of 41.95%, marking a historical high [7] - The domestic film box office in China surpassed CNY 42.502 billion by October 2, exceeding the total box office for the entire year of 2024 [7] - In September, new home sales in Shanghai's outer ring increased by 40% compared to August, indicating a release of pent-up demand in the real estate market [7] Group 5 - OpenAI completed a share transfer transaction valued at approximately $6.6 billion, reaching a valuation of $500 billion, making it the highest-valued startup globally [9] - Tesla's third-quarter delivery volume reached 497,099 vehicles, a year-on-year increase of 7.4%, with Model 3/Y deliveries up 9.4% [9] - Chery Automobile is negotiating with Renault for collaboration in South America, focusing on production and sales in Colombia and Argentina [9] Group 6 - Boeing has postponed the commercial flight plan for its 777X aircraft to 2027, with analysts estimating non-cash accounting costs between $2.5 billion and $4 billion [10] - DoorDash announced the completion of its acquisition of UK-based Deliveroo, valued at approximately £2.9 billion [10] - The global AI benchmark testing organization Artificial Analysis reported that Kuaishou's video generation model ranked first in both image-to-video and text-to-video categories [10] Group 7 - The European Central Bank's President Lagarde emphasized the need for consistent standards for stablecoins issued by both EU and non-EU entities to avoid unfair competition [8] - The Russian-Iran comprehensive strategic partnership treaty, signed in January, officially came into effect on October 2, covering various sectors including defense and energy [13] - The European Commission plans to propose significant cuts to steel import quotas and increase tariffs on excess imports to align with US and Canadian levels [13]

Two local commerce platforms are combining as DoorDash has completed its acquisition of Deliveroo.By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions .Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.The completion of the deal follows its approval by a U.K. court, Doo ...