Buyers retreat in anticipation of the effects of prices. But not on food delivery.
The revenues of the first quarter of Doordash have shown that people always spend to have food for restaurants and weekly grocery transport delivered despite the additional costs and the advice involved.
“We have not seen any change in consumer behavior, even if there are changes in consumer feeling,” CEO of Doordash, Tony Xu, said on Tuesday when calling the company.
Doordash posted a profit for the quarter. The quarter net profit amounted to $ 193 million, beating the estimates and greater than the loss of $ 23 million she declared for the quarter of the previous year.
Measures of the quantity of users of Doordash commanded, such as total orders, broke quarterly records, said the company. Income increased by 21% to 3.03 billion dollars.
Consumer retailers have said they should increase prices in response to President Donald Trump’s prices. While Trump has interrupted prices on many countries since the beginning of April, he has kept rights over imports from China, a large supplier of consumer goods.
Many buyers are already low by savings and extend their budgets. Price increases induced by prices could lead to a decline in expenses, have warned certain companies and economists.
So far, these concerns have not taken a bite from Doordash’s business.
The delivery service has resisted other recent changes which, according to some analysts, could put pressure on demand, such as the reopening of the company after pandemic inflation or high in 2021 and 2022, Xu said.
Faced with prices and a potential recession, people will always need grocery store and occasional meal, the CEO said. “Food is really the most resilient category,” said Xu.
Other delivery services have also said that they did not see signs of decline in expenses.
Instacart financial director Emily Maher said in a call for results on Thursday that the delivery service had “seen no sign of a lower consumer” so far this year.
And Uber CEO Dara Khosrowshahi described her business “resistant to recession”, adding that a slowdown could even make journeys and deliveries by Uber more affordable for customers.
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