DoorDash, Inc. CFO Discusses Growth Strategies and Market Opportunities at JPMorgan Global Technology Conference

Key Takeaways

TL;DR: DoorDash (DASH) focuses on LT growth via Marketplace expansion (grocery, retail, int'l), B2B svcs (SevenRooms, Deliveroo), and ads. Grocery set to lead in order share by YE25. Resilient demand (defensive verticals, DashPass) supported by data-driven ops. H2'25 take rate recovery expected (ads, unit econ). $90B+ GOV run rate; $1B min liquidity maintained.

1. Growth Strategy & Product Roadmap

• Marketplace Expansion:
  • Core focus remains selection (20% annual restaurant churn), quality (delivery/refunds), and affordability (DashPass).
  • New Verticals: >25% of MAUs order non-restaurant (grocery, retail, alcohol). Grocery order volume share expected to hit #1 in 2025 (gained 6-7 pts share YoY).
  • Structural cross-sell: Majority of new vertical users start w/ restaurants; grocery-first users rising.
• B2B (Commerce Platform):
  • Svcs include logistics (Drive), e-com (Storefront), and SevenRooms (table mgmt.). Aims to drive "closed-loop" merchant sales.
  • Incremental to GOV: Svcs act as entry point for merchant integrations, boosting retention.

2. Financials & Capital Allocation

• Q1'25 Take Rate Dip: Seasonal Dasher supply investment + structural fee cuts for DashPass grocery (improves retention).
  • H2'25 Recovery Drivers: Ads growth (already >$1B biz) + underlying unit econ. EBITDA $ grew ~+60% YoY in Q1.
• Cash Strategy: Maintain >$1B liquidity; excess allocated to high-IRR projects (M&A, buybacks). Recent deals incl. Deliveroo (int'l expansion) and SevenRooms.

3. International

• Wolt Integration: #1/#2 in 20+ markets; GOV growth >U.S. restaurants. Consumer behavior mirrors U.S. (new verticals now 16% of orders).
• Deliveroo Acquisition: Adds 9 new EU countries (no overlap). Synergies expected via cross-selling Wolt+ (DashPass int'l).

4. Advertising

• Ad Revenue Drivers: Focus on ROAS analytics for merchants (vs. pegging to GOV%).
  • Current mix: 83/100 top U.S. restaurants + 21/25 CPGs. Int'l/CPG early-stage.

5. Technology & Efficiency

• AI Use Cases: Personalization (conversion lift), code gen (~20-30% dev efficiency), support workflows.
• Autonomous Delivery: Pilots ongoing (land/air); seen as LT unit econ contributor vs. rideshare peers.