DoorDash
The company also announced an acquisition of Wolt, a food and grocery delivery platform in an all-stock transaction valued for $8.1 billion. It has 10 million users and operates in 23 countries. This takes DoorDash beyond its current borders, giving it a more dominant, global presence as one of the leading on-demand logistics companies.
Inside the Numbers
In Q3, the company reported a loss of $0.30 per share, higher than estimates of a $0.26 per share loss. The revenue beat expectations at $1.3 billion vs $1.18 billion. This was a 47% increase compared to last year.
The company continues to add new merchants to its platform as it goes beyond simple food delivery to items like alcohol, prescription drugs, groceries, etc. For many companies, partnering with DoorDash means that it can offer similar e-commerce fulfillment times that are competitive with Amazon
It recently announced a partnership with Ulta Beauty
DoorDash is the largest provider of food delivery services. The company held its initial public offering in December that raised $3.4 billion. DoorDash stock is up 32% this year.
Stock Price Outlook
With 2020 growing farther in the rearview mirror, we are seeing many of the big winners of the pandemic like Zoom
DoorDash is a great example. Many believed that its growth would reverse after the pandemic as people returned to old habits. Instead, DoorDash's results show no interruption in growth. The company likely added new users and keeps adding new merchants to its platform which will lead to even more user growth.
DoorDash is also a necessary partner for many companies given the cost and complexity of maintaining their own delivery fleet. Instead, Doordash and the customer can handle the fulfillment part.