![]() ![]() A recent commitment to expand partnerships with grocery stores and other industries seeking an on-demand e-commerce platformĪlthough DoorDash receives its fair share of criticism, perhaps the sell-off may be overdone at this point.Costs per order have been reducing each quarter.Market penetration remains low, both U.S.Taking a step back, there are a few reasons why I believe DoorDash remains a growth story with upside potential to reach profitability: There are countless scenarios where DoorDash can add value for everyday consumers like this, but it will take time for them to achieve. In just a matter of minutes, a "Dasher" (nickname for the delivery person for DoorDash) showed up at the park and hand-delivered a brand-new pair of shorts. Rather than suffering in the heat or having to go home and change clothes, they decided to order shorts from DICK'S Sporting Goods ( DKS ) via DoorDash from their phone. ![]() There was a video circulating online earlier this year of a person who was out with friends at a park during a hot summer day wearing long pants. To better illustrate, let's use an example. DoorDash has the foundation and infrastructure to achieve this. Imagine having instant access to a one-stop shop for any goods you'd find at a brick-and-mortar store that can be delivered to you the same day. Can DoorDash Sustain Its Growth?īelieving a company can sustain growth for years in a competitive space requires a lot of forward-thinking and maybe a little bit of luck along the way. The company needs to continue focusing on expanding its market share while managing cost per order effectively. While most people associate DoorDash solely as an industry-leading food delivery service provider, I believe it has the potential to become a multi-sector, on-demand delivery juggernaut. Restaurants and grocers should continue to expand indefinitely, albeit slowly. It's hard to imagine a scenario where DoorDash's core business is eradicated due to macro or industry-wide issues. Food has been, and always should be, a relatively inelastic product. DoorDash ( NYSE: DASH) management described it perfectly in their latest investor newsletter: "People need to and typically enjoy eating". ![]()
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