The food delivery service, DoorDash (NASDAQ:DASH), is testing a new feature to alert customers of potential delays in their orders if they choose not to tip, according to J.D. Durkin's report from the New York Stock Exchange on Thursday. The company stated that Dashers, the term for DoorDash delivery drivers, have full discretion in choosing their orders, and the alert system is designed to inform customers of this process. Moreover, DoorDash reiterated that all tips are given directly to Dashers.
This development comes as DoorDash reports a 27% year-on-year growth in Q3 revenue and a 24% increase in total orders, reaching 543 million orders. These figures underline the company's strong performance in an increasingly competitive food delivery market.
InvestingPro Insights
In light of the recent developments with DoorDash, it's worth noting some key InvestingPro Tips and data. Firstly, DoorDash holds more cash than debt on its balance sheet, which is a positive sign of financial health. Additionally, the company's net income and sales are expected to grow this year, further demonstrating its strong performance in the food delivery market. Despite this, the company has not been profitable over the last twelve months, and it does not pay a dividend to shareholders.
Turning to the InvestingPro Data, DoorDash has a notable market cap of $29.85 billion and a revenue of $7.687 billion in the last twelve months as of Q2 2023. This aligns with their reported 27% year-on-year growth in Q3 revenue. However, the company's P/E ratio stands at -33.12, indicating that it has been operating at a loss.
For investors seeking more insights, there are 10 additional InvestingPro Tips available on the platform, providing a more comprehensive understanding of DoorDash's financial position and performance.
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