DoorDash Forecasts Stronger Q3 Orders and Profit as Grocery Demand Grows

DoorDash said that it expects third-quarter gross order value and profit to exceed Wall Street estimates as demand for delivery services remains strong.

DoorDash is expanding beyond restaurant delivery into grocery and convenience services. [Photo: DooDash X]

The San Francisco-based delivery company expects the total dollar value of orders placed through its platform during the third quarter to range between $33 billion and $34 billion, compared with analysts' estimate of $32.6 billion, Forbes Tech reported.

The forecast follows DoorDash's better-than-expected second-quarter results, which included record subscriber growth and improving unit economics.

DoorDash said consumers continue to embrace convenience, with demand extending beyond restaurant delivery to grocery and convenience products. The expansion is part of the company's effort to diversify beyond its core restaurant business.

DoorDash shares rose approximately 1% to $210 in after-hours trading.

The company, led by CEO Tony Xu, has been working to address investor concerns after its shares declined nearly 20% over the previous 12 months.

Among the concerns are substantial investment, rising operating costs and regulatory scrutiny.

Proposed federal legislation could prevent food-delivery platforms from establishing preferential pricing arrangements with large restaurant chains at the expense of smaller competitors.