Q3 2025 DoorDash Inc Earnings Call
Speaker #1: Ladies and gentlemen , thank you for standing by . My name is Desiree and I will be your conference operator today . At this time , I would like to welcome everyone to the DoorDash, Inc. third quarter 2020 earnings call .
Speaker #1: All lines have been placed on mute to prevent any background noise . After the speakers remarks , there will be a question and answer session .
Speaker #1: If you would like to ask a question during this time , simply press star , followed by the number one on your telephone keypad .
Speaker #1: If you would like to withdraw your question , press the star one . I would now like to turn the conference over to Mr. Weston Twigg .
Speaker #1: You may begin .
Speaker #2: All right . Thanks , Desiree . Good afternoon , everyone , and thanks for joining us for our Q3 2020 earnings call . I'm pleased to be joined today by co-founder , chair and CEO Tony Hsu and CFO Ravi Anaconda .
Speaker #2: We'll be making forward looking statements during today's call , including , without limitation , our expectations for our business , financial position , operating performance and profitability .
Speaker #2: Our guidance strategies , capital allocation and investment approach , our plans and expectations regarding the integration and benefits from our acquisitions , our expectations regarding new product and service initiatives , including our autonomous delivery platform , as well as expectations regarding platform safety , our global technology platform , and the broader economic environment .
Speaker #2: Forward looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those described . Many of these uncertainties are described in our SEC filings , including our most recent form 10-K and 10-q .
Speaker #2: You should not rely on our forward looking statements as predictions of future events or performance . We disclaim any obligation to update any forward looking statements except as required by law .
Speaker #2: During this call , we will discuss certain non-GAAP financial measures , information regarding our non-GAAP financial measures , including a reconciliation of such non-GAAP measures to the most directly comparable GAAP financial measures may be found in our earnings release , which is available on our Investor Relations website at .
Speaker #2: These non-GAAP measures should be considered in addition to our GAAP results and are not intended to be a substitute for our GAAP results .
Speaker #2: Finally , this call is being audio webcast on our Investor Relations website . An audio replay of the call will be available on our website shortly after the call ends .
Speaker #2: Operator I'll pass it back to you and we can take our first question .
Speaker #1: Thank you . We will now begin the question and answer session . If you have dialed in and would like to ask a question , please press Star One on your telephone keypad to raise your hand and join the queue .
Speaker #1: If you would like to withdraw your question , simply press star one again . If you are called upon to ask your question in are listening via speakerphone on your device , please pick up your handset to ensure that your phone is not on mute .
Speaker #1: When asking your question . We do request for today's session that you please limit to one question and one follow up question only .
Speaker #1: Thank you . our first question comes from the line of Deepak Mathivanan with Cantor Fitzgerald . Your line is open .
Speaker #3: Hey
Speaker #3: guys , thanks for taking the question . Two part question on the several hundred millions of incremental investments for 2026 . First , how much of this is towards tech platform initiatives versus perhaps more direct product and expansion efforts that tend to have a very defined near-term payback ?
Speaker #4: Look on the first question of where are we spending ? We're primarily investing in three areas and kind of , you know , the second part of your question kind of feeds into the first part .
Speaker #4: So the first major area is , you know , building a new global tech platform . And so this is an effort that's been underway for a of years now .
Speaker #4: But it's coming to a head where we're actually making the majority of those investments in 2026 . And you know what is its purpose ?
Speaker #4: Well , there several reasons of what we're trying to accomplish . You know , the first thing , what we're trying to accomplish is we're trying to build a single global tech stack where when we launch one experiment , you know , the experiments that actually make it to our customers can be shipped at the same time across all of our markets .
Speaker #4: And all of our audiences , you know , today that doesn't work that way . As you know , we have three companies at DoorDash on the restaurant delivery or marketplace front with Deliveroo , revolt and DoorDash .
Speaker #4: You know , in the new world . We'll actually be able to have one feature go live to all audiences , whereas today , you know , that one feature would get to have would pretty much have to get shipped three times , which is very inefficient .
Speaker #4: In how we do that . You know , another goal of the tech platform is to , like you said in your setup , to make it AI native .
Speaker #4: And so there will be lots of tooling there where , you know , I may have mentioned this in a previous call before where , you know , if we're starting a company over again today , I think we would write software pretty differently from how we used to do it .
Speaker #4: And so there's a lot of work , you know , in order to architect , you know , how we set up the architecture so we can manage , you know , both agent workflows as well as , you know , how you would deploy software , test software .
Speaker #4: Right . Software what the role of the engineer is in that new paradigm . All of that is getting constructed as part of this work .
Speaker #4: Yeah . And I do actually think that , you know , at the tail end of this work , you'll see on a go forward basis , not only will we ship faster and , you ship improvements across the board globally , we'll actually will actually be more efficient .
Speaker #4: And we'll have freed up engineering capacity to do a lot more work . And so that will allow us to , you know , not only have a better cost structure , but really , you know , just be able to do a better job in , you know , solving the next problem for customers .
Speaker #4: So the first area of spend is in building our tech platform . The second area is investing in new products . And so we announced probably , well , several launches in our dashboard product events , which happen at the end of September .
Speaker #4: And we're really excited about them . You know , a lot of times when you're building a company , what you're really doing is you're starting with lots of experiments .
Speaker #4: Some of those experiments make it into products . Some of those products then can be graduated into commercialization , where you're trying to test whether or not you have a good business , and then some of those candidates then ultimately yield , you know , big businesses that generate , you know , the cash flows to allow you to invest in the next set of products .
Speaker #4: And experiments . And , you know , I think we're really fortunate at DoorDash in a couple of ways . One , in the area of local commerce , there's just a lot of different problems .
Speaker #4: And one of the and the other way in which we're lucky is that , you know , a lot of the experiments , many of these have been running for years , are now coming ready for more investment .
Speaker #4: And so we're very excited to be investing behind them . You know , we announced , for example , a lot of work on in-store and building , you know , several products there with going out reservations and our CRM platform behind seven rooms .
Speaker #4: We talked about DoorDash Dot , which is the customized , purpose built for delivery autonomous vehicle . You know , the first in the world to drive on the road , sidewalk and bike lanes in order to make that happen .
Speaker #4: We talked about fulfillment services where we're creating an ability for any retailer to offer same hour or same day delivery with near perfect accuracy .
Speaker #4: So these are some examples of the new products that we're talking about . But if you think about it , in each case we're running the business exactly as we always have , where , you know , the goal is we want to make sure that we always can solve the most number of problems for our customers in the highest quality ways .
Speaker #4: And we manage our projects carefully to milestones . And as you know , they deliver upon each mile . You know , milestone .
Speaker #4: We grow them into businesses and we continue to invest behind them . I think , you know , our track record in investing in the areas that we currently have operating , whether it's , you know , us restaurants , US new verticals , the international business or e-commerce platform or ads , business have suggested that we've had some success in repeating this playbook .
Speaker #4: And we're doing this now , you know , for future growth .
Speaker #5: Yeah . I mean , just to add to , you know , what Tony talked about , right ? Look , our core business is continuing to do really well .
Speaker #5: I mean , you're seeing that come through in terms of the numbers where if you're thinking about it from a growth perspective , growth accelerated for the fourth straight quarter , overall , unit economics are improving across the business as well as the profit dollars continue to increase .
Speaker #5: This is giving us the ability to reinvest back in the business . If you think about our operating philosophy , when the gov is coming in ahead of expectations , when the unit economics are improving , our philosophy has always been to reinvest back in the business .
Speaker #5: If you're looking at the results today , it's a combination of these decisions that we've taken over the course of the last decade that philosophy and how we are operating is not changing .
Speaker #5: Look , we're very disciplined in terms of how we operate . We're thinking in terms of IRR . All of the investments that we talked about , we think they're going to extend the duration of growth as well as drive strong IRR for us .
Speaker #5: And if you're thinking about 26 , what I would say is that the EBITDA margin for the existing business , including the investments , think of that as the overall business , excluding Deliveroo , I would expect those margins to be up slightly compared to 2025 .
Speaker #5: Hopefully that should give you a sense of how we're thinking about investing . I mean , net , net , look , the business is growing .
Speaker #5: The business is growing exceedingly exceeding our expectations . And our goal is to continue to reinvest . And we're very excited about the investments that we're making .
Speaker #3: Very helpful . Thank you so .
Speaker #6: Much .
Speaker #1: Our next question comes from the line of Shweta Khajuria with Wolfe Research . Your line is open .
Speaker #7: Thank you for taking my questions . Could I please try to ? First one is also on investments . Could you please talk about where you're planning to invest as it relates to Deliveroo ?
Speaker #7: What you're goals are for the first year in terms of order of business and then and strategic focus areas , and then the second one is on automation .
Speaker #7: Could you please talk about where you are in terms of expanding automation , your robots and your third party partnerships , and how do you think about scaling it and deploying that opportunities over the next year ?
Speaker #7: Or maybe 1 to 3 years ? Thank you .
Speaker #4: Yeah , I'll start . And you know , Ravi , feel free to add , you know , the first question is about investing in Deliveroo .
Speaker #4: This is kind of similar to you know , what I said about our general investing philosophy and kind of what Ravi said about , you know , why we feel like now is the right time to , you know , continue to invest for the long run , which is whenever we see a it starts with making sure that we can build the best in class product experience .
Speaker #4: You know , measured in terms of the retention , the frequency of use and the engagement from the audiences . We think that we found a business actually in better shape than we had expected .
Speaker #4: With Deliveroo . And we think that it there's actually a lot of opportunity to add to the foundation that they already have and make continued product improvements so that it will achieve the best in class , you know , metrics along those dimensions .
Speaker #4: I think if we can do that , you know , and at the same time improve , you know , the unit economics , I think that that's what will allow us , you know , to generate the greatest .
Speaker #4: Service for our audiences . And also the greatest , you know , long term business and returns for all of our shareholders . And so the first order of business really is making sure that we continue to invest in the product , make those improvements , and then , of course , over time , you'll see cost efficiencies come out of the business because we'll be combining two European teams on the same continent .
Speaker #4: But , you know , I think the first order of business continues to be adding to the strong foundation that the product has and making sure that we can make it best in class , given the learnings that we've had with volt and DoorDash and then grow from there .
Speaker #4: On the second question around autonomy , the way that , we're thinking about this is really pragmatic , and I think the most important thing is understanding that , you know , the the vision for autonomy is really going to be a multimodal world where you're going to see different fulfillment methods .
Speaker #4: You know , some of those fulfillment methods will happen with Dashers . Some of them will happen with vehicles on land , some of them will happen with vehicles in the air .
Speaker #4: Some of them will happen with vehicles built by DoorDash . Some of them will be , you know , fulfilled by vehicles built in partnerships and and really what's what's important is DoorDash has the luxury to create our own autonomous delivery platform where depending on whatever the use case is or whatever the customer need is , we can solve it with the highest quality , the lowest cost and the best service .
Speaker #4: And that's really the goal . And so we'll be fairly pragmatic on how we do this . So a lot of it will be testing within one market .
Speaker #4: Getting that right , figuring out the go to market motion because you know , there's many parts you kind of have to get right .
Speaker #4: Everything from the manufacturing when it comes to making these products in-house to partnerships to integrating the hardware and the software , to making sure you get the repair and the teleop , you know , operations .
Speaker #4: Correct . To making sure that you work well with city governments . There's a lot of things you kind of have to get right .
Speaker #4: And so , you know , for us , 26 will be the year where we're ready to commercialize some of these efforts . But I think this is going to take a while .
Speaker #4: This is not something that's going to happen overnight . It does require , you know , making investments up front because sometimes these decisions , you know , are required upfront and you don't really get the product until later .
Speaker #4: But for us , we're pretty excited about what we see as the potential . We also , you know , are very , very excited about this autonomous delivery platform where we're going to be able to inject whatever the right fulfillment method is in order to give the best service .
Speaker #5: And yeah , your point around delivery , look , I mean , we're very excited , you know , with the partnership with Deliveroo .
Speaker #5: Look , I'll remind us back to the deal thesis that we had . Right . This gives us the ability for us to operate in a really large , attractive market where we could deploy our operational playbook , our product playbook , to drive operational rigor .
Speaker #5: If you think about it, the focus for us is that what we're learning is there's an opportunity for us to continue to improve product.
Speaker #5: There's an opportunity for us to improve the consumer experience . To your point around , you know , the focus . That's where we are focused on .
Speaker #5: Why is that important is because it drives scale by improving retention and order frequency , which will drive more gross profit . Dollars .
Speaker #5: That's honestly how we operate DoorDash. That's honestly how we operate Volt. Deliveroo is going to be no different for us.
Speaker #5: What we see in the business is from an EBITDA perspective . Look , we're very comfortable with the profit generation of the business .
Speaker #5: It is in line with what we underwrote when we did the deal , which assumed some level of investment . Now , what you're seeing in the business is the growth is exceeding our expectations .
Speaker #5: The business is growing double digits , which is giving us confidence to invest back in the business . The focus for us continues to be investing behind the team , investing behind product , which will ultimately drive long term free cash flow generation in that business .
Speaker #8: Thanks , Ravi . It's helpful .
Speaker #1: Next question comes from the line of Ross Sandler with Barclays . Your line is open .
Speaker #9: Hey guys . Glad to be back on the call . I guess just following up on on just the broader consolidation that we've seen from you guys and from Prosus acquiring jets , how do you see the overall landscape in Europe evolving next year on the back of all of this ?
Speaker #9: And I mean , it sounds like you're investing in Deliveroo to to grow a little bit faster . I assume that the 200 million of EBITDA is reflecting that investment and the platform consolidation investment that we just talked about a few questions ago would be kind of a separate thing , not not included in , you know , reducing Deliveroo's run rate from what it was before to this 200 based on some of allocation of that platform investment .
Speaker #9: Just any clarity on on that that minutia would be helpful . Thank you .
Speaker #4: Yeah . Hey , Ross . Look on the first question on the European landscape . I think we have a great opportunity to be the leading local e-commerce platform .
Speaker #4: There . And I you know , I think a lot of the confidence of what inspired us to pursue the Deliveroo acquisition really came , you know , a couple of years ago after gaining confidence in working with volt , you know , the first test for us was whether or not we can actually take some of the lessons , you know , that we've learned at DoorDash and also combine them with the lessons that volt has learned in building their markets to see if we can create , you know , the best in class product .
Speaker #4: And I think when you look at our growth rates , which continue to exceed those of our peers , as well as , you know , just the retention and frequency levels and how they're progressing nicely as well as , you know , the unit economics improving at the same instance to all time highs .
Speaker #4: We gain further confidence that we could kind of take on the next project . And and that really is kind of how Deliveroo came into the puzzle .
Speaker #4: So when you add up , you know , our presence in Europe , you know , you're talking about a presence in over 20 countries and with the , you know , strongest position in the cities with the big , biggest profit pools .
Speaker #4: And so I think there's a lot of strong foundation to build from . And so in general , what I see is , you know , can we solve , you know , the most local commerce products in Europe , the way that we're trying to do that in the States and in other countries .
Speaker #4: And , you know , so far as I mentioned , you know , we've we've been fortunate where some of the experiments that we've been running for a while now are now coming into fruition , into becoming real products .
Speaker #4: And we're starting to invest behind those products , which is some of the investment , you know , commentary that we outlined in the letter and that will , you know , translate over to Europe as well .
Speaker #5: To the second point , yeah , I mean , the 200 million think of that as the contribution from Deliveroo to the overall EBITDA .
Speaker #5: And think of that as the investments that I talked about earlier . Right ? It's investments that we're making behind product . It's investments in selection , quality as well as people .
Speaker #5: So you should think of that as the contribution of Deliveroo EBITDA .
Speaker #9: Thank you .
Speaker #1: Next question comes from the line of Josh Beck with Raymond James . Your line is open .
Speaker #10: Yeah . Thank you so much for taking the question . I wanted to kind of go back to the tech platform that you've been building in the background .
Speaker #10: Curious kind of what you've learned . Thus far and kind of why this moment in time was the right , you know , moment to inflect upwards .
Speaker #10: You know , there's a lot of external changes in the AI stack . The international scale of the business is obviously very different .
Speaker #10: Robotics is having breakthroughs . So just kind of curious if there was maybe a smaller list of of items that that drove this step up and then with respect to the integration , you know , I think in some cases they can be messy .
Speaker #10: You have obviously a lot of consumer merchant Dasher ecosystem . How do you minimize the disruption and kind of keep the strength ? It sounds like the route business maybe is is kind of the double digit range .
Speaker #10: So it seems to be a pretty good spot . How do you maintain that throughout the integration ? Thank you .
Speaker #4: Yeah I can take that . I guess with respect to the the tech platform , I think this was something that always was in our heads when we were thinking about , you know , the acquisition of some of the companies that we're talking about , right ?
Speaker #4: I mean , like , you know , by and large , these companies , you know , perform the same service in each of the geographies .
Speaker #4: Now , there are a lot of obviously local differences , but by and large , the service themselves are the same . And I think that's one of the things that , you know , screams that we should be building a single tech platform to actually make sure that , you know , all of the products are under the same data models .
Speaker #4: The same , you know , architecture , the same UX . But when you're doing that , especially when you have like a change as big as AI happening externally , you obviously have to take that into consideration .
Speaker #4: So I think some of these things kind of came together , you know , in the 24 time period where it was exceedingly obvious , like what the right thing to do is , and then now you just have to go and do it .
Speaker #4: And that's kind of , you know , the work that we've started here in 25 , it'll really take shape in 26 , which is , you know , again , a large part of the investments .
Speaker #4: Obviously , the those investments will come off . But , but , but , but that's you know , the timing of that really makes sense for us on the integration of I mean you're you're absolutely right .
Speaker #4: I mean we we obviously you know , one of the reasons why we're incurring extra costs is because we are making extra tech investments to make sure that , you know , ru can continue to perform well on its own , even as we're building the single tech stack .
Speaker #4: And and so as a result , when you have these , you know , added investments that that's that's what explains it . And but that's also how you protect , you know , the experience and the service that , you know , the customers get to see even as you're building this new foundation .
Speaker #10: It's super helpful . Thanks , guys .
Speaker #1: Next question comes from the line of Jason Helfstein with Oppenheimer . Your line is open .
Speaker #11: Thanks for taking the question . Just one . One . In a follow up , just how should we think about advertising broadly ?
Speaker #11: I mean , it obviously comes in at a high incremental margin . There's flow through versus reinvestment . So just how how are you thinking about how we should think about how that flows through ?
Speaker #11: And then second , there's been some questions . The report floating around about kind of documented workers and the government kind of cracking down on documented workers and , you know , certain reports like talked about what percentage just any color you can have about how you manage making sure that you don't have undocumented workers on the platform and how you manage through that .
Speaker #11: And any exposure there . Thank you .
Speaker #4: Sure . I can take both of those questions . Jason , and feel free to add in here . Ravi , look on on ads .
Speaker #4: I mean , we're pretty excited about the ads business , right ? I mean , it's it was the fastest business ads business in history to get to $1 billion of annualized revenues .
Speaker #4: And it's also a business where we have , you know , extra budgets , wanting to spend more on , on on the dash , you know , platform than we kind of give ad space to .
Speaker #4: And that's because , you know , when I think about the ads business , I think the , the reminder I always give to our teams and that I would say again , here is that you kind of have to solve for all of your audiences .
Speaker #4: You , on the one hand , you obviously have to maximize the return on ad spend for advertisers . On the other hand , you have to make sure that you are not degrading the consumer experience .
Speaker #4: And that's that's hard to do . You know , there are real conflicts and real tensions and real trade offs and negative consequences .
Speaker #4: I think if you , you know , get that incorrect . And that's why I've always believed the right order to sequence things is to first build a very healthy marketplace .
Speaker #4: And then the monetization opportunities , including ads , will follow . And they have I mean , look at our business . I mean , we've continued to grow faster at bigger scale for many quarters in a row now .
Speaker #4: And you're seeing , you know , the bottom line , contribution margins and EBITDA margins , you know , grow in the same instance .
Speaker #4: And so I think all of that is , is , is suggesting that , you know , I think we have the right trade off and we just have to make sure that we have the discipline to to maintain it .
Speaker #4: On the second question , I mean , Dasher , supply has never been healthier . It's always been , you know , something that's obviously , you know , very top of mind for us , which is making sure that we get correct , you know , all of the Dasher authenticity pieces .
Speaker #4: That's a lot of work that goes into it . We something that we've been investing into for many years now and will continue to we've seen no challenges , you know , to our dasher funnel or supply , you know , you know , irrespective of whatever reports that there might be out there and it continues to be something that , you know , we've upheld the highest standards and something where , you know , it's it's we've always done it the right way .
Speaker #4: I guess .
Speaker #5: Jason , just on your point on the as business , right . Just to clarify , I mean , I think the ads business is growing .
Speaker #5: It's growing quite nicely . We don't differentiate that from like , hey , are we thinking about it just purely from a flow through perspective ?
Speaker #5: Because for us , every dollar that we generate , our goal is to reinvest back in the business at healthy rates . That applies for improvements in unit economics or applies for , you know , dollars that we generate from ads .
Speaker #5: We think of , you know , efficiencies that we could generate so that we can put that back in the business . But net net ads business is growing and it's growing quite nicely .
Speaker #1: Next question comes from the line of Michael Morton with MoffettNathanson . Your line is open .
Speaker #12: Hey guys . Thanks for the question . I guess maybe one for Ravi to start . If I'm just doing like quick math here , looking at your guide and kind of what it means for the core business , it seems like this incremental step up cost could maybe be like 100 million a quarter if you feel free to correct me on that .
Speaker #12: And then if Tony highlighted the buckets where the spending is going and this a stupid question , but from the outside looking in , just understanding , maybe like where the platform development spend , like how that hockey sticks so much if it's something that's been going on for several years and then what I found interesting was the , the fulfillment services comment he made , and I was just looking for any more details .
Speaker #12: If you're really stepping on the gas , there and if this is like a maybe part of a partnership with some of like the just say , large AI platforms where maybe you work local commerce more into these e-commerce searches and is there more cost involved as you build out dash link , anything there would would be really helpful .
Speaker #12: Thank you .
Speaker #5: Yeah . Mike , I'll take the first one , I think to your point around , I mean , look , you know , we're still early in terms of how we're thinking about planning .
Speaker #5: We'll give more precision as we give quarterly guidance . What I would say is , if you're thinking about 2026 to the earlier point , you know , what I made to Deepak is I would think of margin for the existing business , including the investment , investment areas .
Speaker #5: So, think of that as the existing business, plus investment, excluding Deliveroo. I would expect the margins to be up slightly compared to 2025.
Speaker #5: Hopefully that should give you a sense of how we're thinking about margins as well as investment into 26 .
Speaker #4: Yeah , Mike , I guess what I'd add to some of your other questions is , you know , first , you know , the reason why the tech investments go up in 26 is because that's when there are actually happening , right ?
Speaker #4: Like the way if you think about how would you build new software , the first thing you would do is you'd first have to architect it .
Speaker #4: Right . And so you're not actually really doing much actual coding , but like for instance , but once you're ready to code , what do you have to do ?
Speaker #4: Well okay . Well one thing you have to do is you have to spin up some cloud instances . And if you're going to maintain multiple stacks as you're building a new one , you're going to incur extra , you know , kind of temporary , you know , cloud instances , right .
Speaker #4: And so that's one of the reasons why , you know , the costs go up . And that . So it's just basically like when you're actually ready to deploy the software and actually get everything onto the same tech stack , that's , that's what's adding to the , the kind of temporal costs with respect to Dasher fulfillment services .
Speaker #4: It's less about working with , you know , AI companies , although and more on how we work with our existing , you know , retail partnerships .
Speaker #4: Right . So what is Dasher fulfillment services ? Well , the goal is we want to , you know , one of the challenges in delivering from from from just third party stores is that not every store and most stores actually , I would argue , do not know their inventory .
Speaker #4: And this is for a whole host of reasons . And even though we believe we have leading accuracy and and the quality of delivery when it comes to , you know , any category , including those outside of the restaurant category , it's still not good enough because it's not it's not perfect .
Speaker #4: Right . And and therefore , why would a customer pay a premium to get not what they ordered or to get a substitute of what they ordered , but if but if we could manage the inventory systems ourselves and actually run the fulfillment setup end to end from the warehousing to the inventory to the fulfillment , we get almost near perfect accuracy .
Speaker #4: Okay , so how do you translate that and do it for every retailer , especially retailers who may not have , you know , the density of stores or the coverage in the country so that they can offer something like same hour or same day delivery , you know ?
Speaker #4: Well , I think what I would argue is you can literally turn every physical retailer into a omnichannel player . Now that's going to that's going to take time .
Speaker #4: You know , and and this is one where it takes time to set up , you supply chains with retailers to test , you know , the right markets , so on and so forth .
Speaker #4: But what we're very excited about is that , you know , the quality is best in class . Now what we're doing is we're adding selection that's never been made available to customers before .
Speaker #4: And bringing it close to where they are so that these retailers can offer same day delivery and , and that combination is now happening .
Speaker #12: Thank you .
Speaker #1: Next question comes from the line of Andrew Boone with citizens . Your line is open .
Speaker #13: Thanks so much for taking the question . I wanted to ask about new verticals . You guys talked about the fact that unit economics are still negative .
Speaker #13: Can you talk to us about the path and maybe the visibility that you have to break even ? What are the key kind of operational things you guys need to do to get there ?
Speaker #13: And then in terms of just us kind of growth overall now growth ads were were higher year to date versus 2024 . Can you guys just talk about the opportunity of where you guys are finding new users ?
Speaker #13: I know we've talked about this on past calls , but can you just revisit what pockets you guys are unlocking there ? Thanks so much .
Speaker #5: Yeah , Andrew , I mean , let me start . Look , I mean , I'll talk about the overall performance of the new vertical business , right .
Speaker #5: Like look , new verticals had a really strong quarter . The business is going really fast with the fastest growing . We believe we are leaders in terms of order , volume , share ahead of our expectations .
Speaker #5: Remember , if you recall Q4 of last year , we talked about the fact that a quarter of our users ordered from new verticals , that number has continued to grow quite nicely .
Speaker #5: Miles have increased order , frequency is increasing the overall basket size continues to increase , which just tells us that consumers like the product .
Speaker #5: The usage of the product is continuing to go up on the unit economics front . Just to be clear , right ? Immune economics continue to improve .
Speaker #5: They've improved sequentially . Q on Q as well as year on year . We're very comfortable with the unit economics are we are comfortable on what it needs to get to to be breakeven .
Speaker #5: A lot of that is going to come from scale as well as continued improvements. Whether it's quality of the product that we continue to improve, what we're focused on right now is scaling the business.
Speaker #5: We think there is an opportunity for us to continue to improve the product. As long as we continue to improve the product, this is going to be a large business for us, which will drive more free cash flow generation in the future.
Speaker #4: Yeah , and then your second question with respect to the US strength , I mean , you're absolutely right . I mean , we're thrilled with the performance of the US marketplace .
Speaker #4: I mean, four quarters in a row of increasing strength on a bigger base, especially at the scale that we're talking about.
Speaker #4: You know , certainly is something that we're very proud of . There's no one thing . I mean , a lot of the , you know , a lot of the performance that you're seeing today really were the result of actions , probably , you know , initiated three years ago , where , you know , it's this continued maniacal focus on improving the inputs of the experience , you know , how do we improve the selection , the quality , the affordability , the service levels .
Speaker #4: And when you do that , and that's because , you know , the most difficult thing that we always compete against are increasing consumer expectation .
Speaker #4: You talked in your question about , you know , why are we seeing increasing , you know , monthly active user penetrations and perhaps why are we ahead of schedule on some of these forecasts .
Speaker #4: It's because we're delighting each cohort of customers . Right . And and each new cohort of customers obviously have a higher expectation bar than the previous cohorts .
Speaker #4: And if you can keep delighting the new customer cohorts where we are still the leader in acquiring new customers , whether it's in the restaurant category , in the grocery category , in any retail category , well , then you're also delighting all of your existing customers .
Speaker #4: And so you kind of have this , you know , boat that lifts all of your cohorts . And that's because of product improvements .
Speaker #4: And , you know , but a lot of this stuff started probably three years ago , and now we're making investments into things that we hopefully will have an impact three years from today .
Speaker #5: And when you look at the underlying cohorts , right , the demand on the underlying cohorts continues to be very strong . Both are growing .
Speaker #5: Order frequency is growing even subscription both in the US as well as international , had a record quarter in terms of Dash . Subscribers , as well as world class subscribers .
Speaker #5: What we see in the business is even existing cohorts , cohorts that are quite old . They're also continuing to engage with us even more .
Speaker #5: All of this goes back to look, I mean, improvements in product improvement and selection as well as quality that we've been continuing to work on, not just in the last quarter, but over the last several years.
Speaker #13: Thank you .
Speaker #1: Next question comes from the line of Nikhil Devnani with Bernstein . Your line is open .
Speaker #14: Hi there . Thanks for taking the question . I had a clarification on the investment commentary . Is the bulk of this spend fixed cost investment that you get leverage on as you compound the top line ?
Speaker #14: Or is it a step up in variable costs as well ? And then on new verticals beyond grocery and convenience , which categories of the retail or local commerce opportunity do you feel are showing the most promise from a demand perspective , that becomes the next big category for DoorDash going forward ?
Speaker #14: Thank you .
Speaker #5: Yeah , I'll take the first one on the spend and investment area . Look , I mean , you know , our goal is we are spending up and down the PNL .
Speaker #5: Some of that is going to come through in terms of cost of sales . Some of that is going to sit within sales and marketing , as well as some of that is going to sit within R&D and OpEx .
Speaker #5: Look, the areas that we're investing in are aimed at increasing and scaling our autonomous program. Obviously, we are doing this in a very disciplined manner.
Speaker #5: We're growing our software business , both our digital ordering as well as well as our seven rooms business falls under that . They're starting to generate revenue .
Speaker #5: That's going to continue to increase . And finally , some of the tech stack work that we're doing , which we talked about , that's going to hit , you know , you know , across the PNL .
Speaker #5: So you should think of that as a some of that is going to drive leverage as we go through , as we scale the business .
Speaker #4: Hey , on your second question , with respect to , you know , which categories are we seeing growth ? We're actually seeing growth quite a lot across a lot of categories .
Speaker #4: Outside of multiple categories , outside of grocery convenience and alcohol . And you know what . And it tends to be somewhat probably what you may expect .
Speaker #4: You know , that that comes with , you know , time of the year , you know , for example , you know , pets is a category that's kind of a all season , you know , category .
Speaker #4: As we head towards the holidays here in the US , you see , you know , categories like electronics really spike in terms of , you know , the gifting use case .
Speaker #4: We've seen , you know , growth in health and beauty , home improvement has been a very big surprise to us . Seeing growth where we're delivering believe it or not thousands of pounds of mulch , you know , per day .
Speaker #4: I guess that more happened . You know , maybe in the summer time period again . So some of this has to do with when customers need different things .
Speaker #4: But I think what's really interesting , even without just looking at the performance of these categories , is just actually looking at where things are going , like the trend and the trajectory , and , you know , the input metrics such as the searches for different types of products .
Speaker #4: And we're effectively becoming the everything inside your city store . And as a result , you know , we're seeing growth across the board .
Speaker #4: And so sometimes some of these new customers are coming in. You know, we talked a little bit earlier about more growth or monthly active user growth.
Speaker #4: You know , they're coming in for the first time outside of the restaurant category . And then what you see happening is then they'll shop in restaurants and then , you know , back and forth and you know , this is what we've always believed could be the case where if you start with the highest frequency category of of restaurant food , which is where we're , you know , the leader , you just get the most shots on goal .
Speaker #4: And then now we're also the leader in terms of , you know , transactions outside of restaurants , both in grocery convenience as well as the categories outside of that .
Speaker #4: Then you really get this , you know , multi shopping behavior across the board . And if you can do that , the most number of times , which I believe , you know , is what we're we're on track to do , you'll create the most valuable membership program , which is Dashpass .
Speaker #14: Thank you both .
Speaker #1: Next question comes from the line of Lloyd Walmsley with Mizuho . Your line is open .
Speaker #13: A great thanks for taking the question . I wanted to go back to the dashboard fulfillment services and just better understand the plan there in terms of integrating all this £0.03 inventory , especially on the grocery side , you know , is this going to require like a lot of build out of new facilities or , or do you just sort of take control of pick and pack inside some of the partner facilities and and then as we as we think about the timeline of that and it seems like this could be , you know , a really big and attractive area of investment .
Speaker #13: Is that something is this something where 26 is sort of continuing to experiment on this ? And maybe you scale it more in 27 , just like anything more you can help us understand , like how how that will work and , and the timeline around that would be great .
Speaker #4: Yeah . Hey , Lloyd . Yeah , on dashboard fulfillment services , we're obviously super excited . And we share your optimism that this could be a very attractive area of investment .
Speaker #4: I think the short version of this , it really depends on the retailer we work with . Right . Some retailers , you know , have different goals .
Speaker #4: For example , some retailers may want to launch new geographies , some other retailers may want to densify existing geographies . Other retailers may want to , you know , find attractive uses for less productive existing square footage inside their existing stores .
Speaker #4: I mean , there's a whole host of different goals , and this is why the question's a little bit hard to answer . There is no one size fits all solution , I guess , is what I'm trying to say .
Speaker #4: And so as a result , I think what's most important is you have to build different capabilities and be flexible . What we're stubborn on is we're stubborn on building the best .
Speaker #4: You possible experience where you're bringing in selection that's never been made available to customers before , right ? If you think about it , there's , you know , roughly speaking , in , you know , in cities there's like tens of millions of items out there .
Speaker #4: And today , you know , only a single digit percentage of them are being delivered through DoorDash . And if you compare that to DoorDash , almost already carries the most amount of inventory , you know , for same hour delivery .
Speaker #4: I just think there's a massive headway and runway in front of us in terms of how much more of that inventory we can bring and fulfill on behalf of customers and bring everything inside the city.
Speaker #4: Now , this , though , is not our inventory , right ? This is the key challenge . It's a retailer's inventory and the challenges .
Speaker #4: Will one like , you know , does the inventory exist . And that's one of the reasons why we're building fulfillment centers as services .
Speaker #4: Because sometimes the inventory can exist and it happens to be inside stores . But other times it doesn't exist . Or it's missing or it's in delay somewhere in the first mile or the middle mile .
Speaker #4: And so it's complicated but but , but but but the simple thing that we want to give customers is we want to give them selection that's never been made available before to them .
Speaker #4: You know , done same day or same hour . We're bringing a new e-commerce capability to a lot of physical retailers . As a result , on the retail side .
Speaker #4: But but you know , the answer to your question is a little tricky because each retailer may have their own goals . And so there may not be one answer that is that that is the setup .
Speaker #4: And that's why we have a handful of these retailers that we're working with . And we're we're customizing the solution that makes the most sense for them .
Speaker #4: And of course , you know , we're making sure that's the best in class experience for consumers .
Speaker #13: All right . Well thank you .
Speaker #1: Next question comes from the line of Youssef Squali with Truist Securities. Your line is open.
Speaker #13: Great .
Speaker #15: Thank you very much . So Tony , one subcategory to talk about is perishables . I wanted to just pick your brain on how you think the entry of Amazon in that space is likely to to kind of impact you guys .
Speaker #15: Not even sure how big perishables is to you . I'm assuming it's small again , but maybe you can help clarify that . And just how are you guys kind of positioned to kind of defend your turf and then maybe just comment on on the change in the , the guards , at least in , in some cities like New York , after the , win of the Democrats lost .
Speaker #15: And how that potentially could impact Dashers pay eventually Dashers organizing and just really not just in New York City , but in other big cities as well .
Speaker #15: Thanks a lot .
Speaker #4: Yeah , I'll I'll take those . Look , on the first question , look , I guess two sentences have always been true for the history of DoorDash , which is one , it's always been a competitive space , no matter which space we're talking about .
Speaker #4: And number two , DoorDash has continued to grow . And I guess now even grow faster at bigger scale . And and so , you know , I guess , like you may wonder why how how is that possible ?
Speaker #4: How can you square away some of these things ? Well , I would say a few things . I would say the first thing is , you know , the market is still very not penetrated .
Speaker #4: Right . If you if you look at something like grocery penetration , it is so low relative to something like restaurant delivery . And the reason , again , has to do with , you know , this inventory fulfillment challenge that I've talked about probably for for several years now , actually , when we launched in 2021 , this was the original vision for fulfillment services , which , you know , I'm glad that we're now making Come alive .
Speaker #4: But it's , you know , can we get you exactly what you ordered ? And if you can't get , you know , customers exactly what they order , guess what ?
Speaker #4: They're not going to order . And that's that's and that's really the challenge . You I think when it comes to the grocery delivery space or the perishable delivery space , you know , with respect to , you know , retailers and , you know , folks coming in .
Speaker #4: Well , I think at the end of the day , it's really about consumer choice , right ? I mean , consumers , you know , DoorDash is created so that we want to give and create a world where consumers can choose from any , any retailer of their desire .
Speaker #4: And we believe that maximal choice versus just choosing from one or two retailers is something that is not only good for all audiences, but it's great for cities.
Speaker #4: I mean , that's the whole point of why DoorDash exists to connect every local business to every local consumer . And if we can do that , we're going to grow the GDP of those cities and create more jobs for everybody and make better neighborhoods .
Speaker #4: And all the all the good stuff that you'd want to see inside the city that you live in . You know , I guess that leads me to the second question , which is around , you know , what's happening with some of , you know , the different cities and kind of , you know , recent elections and stuff , you know , my position on this has always been that , governments and businesses should always work together .
Speaker #4: And that's what produces the best possible outcomes for all constituents . And , you know , and I think this again , is , is where several sentences can be true at the same time , even though they sometimes come into tension .
Speaker #4: You know , I believe that , you know , all audiences , you know , you know , deserve to be treated fairly .
Speaker #4: For example , you know , one of the hot topics in a lot of these coastal cities today , including the city where I live , San Francisco , is affordability .
Speaker #4: You know , DoorDash has is probably the most aggressive on making sure that we are the most affordable platform . This is something that , you know , we've been doing since our history .
Speaker #4: And most recently , you know , we we took the lead , for example , on making sure that the Snap benefits , you could continue for those who needed them the most .
Speaker #4: You know , when it comes to Dasher , pay and Dasher protections , that's something . You know , we were the first platform in 2019 .
Speaker #4: In this country , in the US , to offer , you know , occupational accident insurance to Dashers without without their asking us to and and it's something that we've always believed in and I and I think that , you know , what I found to be most productive is finding common sensical solutions and helping politicians create common sensical policies so that they actually get what they want .
Speaker #4: You know , I think what sometimes , unfortunately , gets in the way is when , you know , ideologies or biases , come without even evaluating the facts .
Speaker #4: Or what audiences want . And I think that so long as we put what audiences want up there , I think that businesses and governments can coexist .
Speaker #4: I believe that businesses should be allowed to be for profit companies , and I believe that audiences deserve to be served .
Speaker #15: That's great. Thanks, Tony. That's helpful.
Speaker #1: Next question comes from the line of Justin Post with Bank of America. Your line is open.
Speaker #16: Hey , thanks for taking my question . I don't think you've really had a chance to outline synergies with Deliveroo on the maybe on the order and the top line side , revenues .
Speaker #16: I would love for you to talk about that . If you if you can and then maybe talk a little bit about the take rate differences in the accounting .
Speaker #16: That would be helpful . Thank you .
Speaker #5: Sure . Justin . You know , I'll take both of those . Look , I mean , you know , the focus for us , like I said on the earlier question about Deliveroo , right ?
Speaker #5: The focus for us is always on day one is to continue to improve the product . It's to continue to improve the consumer experience .
Speaker #5: You know , why is that important ? Is because that drives scale and the combination of scale and improvement in unit economics drives more gross profit dollars .
Speaker #5: Right ? For us , the philosophy is to improve the product , to improve the overall gross profit . Dollars . That's what we are focused on from day one perspective .
Speaker #5: Look , I mean , obviously part of the deal thesis was , was to have cost synergies . We operate a global platform .
Speaker #5: We think there's going to be synergies largely from scale as well as cost redundancy . Some of that is going to take some time .
Speaker #5: We are excited about the partnership as well as what we're seeing in the business . Your second point around some of the accounting differences , the way I would think about it is from an EBITDA perspective , you should assume roughly an 8 to 10 million US dollar impact or an expense to EBITDA .
Speaker #5: As you're thinking about modeling , going from . Raw definition of EBITDA to the definition of EBITDA .
Speaker #17: Thank you .
Speaker #1: Next question comes from the line of Li Horowitz with Deutsche Bank . Your line is open .
Speaker #18: Great . Thanks so much . I guess going back to investments , I guess , how should we be thinking about the payback period on these ?
Speaker #18: There's a lot of talk about taking time and path dependency, and spinning up an environment. So it sounds like payback periods are perhaps getting extended relative to your typical investment plans.
Speaker #18: Is there anything in this new bucket of investments that is perhaps more of the traditional , quicker payback periods ? That is part of your typical playbook ?
Speaker #18: And then maybe relatedly , retail , obviously sounds like a big and compelling greenfield opportunity for you guys . Any way to contextualize how much of this new investment plan may be specifically targeted at this new , at this vertical and driving faster growth outcomes there ?
Speaker #18: Thanks so much .
Speaker #4: Yeah , I can take both Lee and feel free to add in here on the payback periods . Nothing has changed . You know our bar for payback periods is still the same .
Speaker #4: You know , and that's true whether we're taking on something in a completely new domain , you know , like dashboard fulfillment services or autonomy or our tech stack , for example , it's just that we're taking on more projects now , right ?
Speaker #4: And and like I said , you know , it's very hard to kind of forecast the progression of which experiments you ran , you many years ago to now , which experiments have actually , you know , now earned their privilege of getting more investment and , and so it's just , you know , more projects have have found product market fit in our portfolio .
Speaker #4: You know , that I believe will achieve our , our investment philosophy , which is to maximize long term free cash flow per share .
Speaker #4: So the payback period and kind of the methodology in which how we think about capital allocation has not changed on retail . I , I think it's probably is similar to maybe a previous , you know , question about it .
Speaker #4: We are seeing a lot of growth in retail right now . And I think it's kind of similar to , you know , where .
Speaker #4: But but from a product perspective , I think , you know , we we DoorDash are kind of in retail today where we DoorDash were in grocery maybe in 2021 or something like that or 20 or the tail end of 2020 .
Speaker #4: So we're just very early on the actual product experience itself . And that's why it's super encouraging . It actually means that , you know , the real reason why , you know , we think there's a massive opportunity in retail is because consumers are actually pulling us in .
Speaker #4: You see this not just in the buying behavior , which is which is great , but you also see this in , you know , the search behavior .
Speaker #4: You see this in , you know , what we talk about with retailers as well . You know , a lot of what DoorDash does is , is kind of two sided , right ?
Speaker #4: We have a consumer business which maybe most people know us for , but we also have a commerce platform which , you know , and already we've created two of the most successful B2B products out there with , DoorDash drive and DoorDash storefront .
Speaker #4: Obviously , we're adding seven rooms to the mix , which is really in the restaurant category . But in the retail category , you know , we we get a lot of requests to help there because I think , you know , these retailers , you know , recognize that we have a large audience , a large consumer base that we can certainly bring , but we also have capabilities that we can bring .
Speaker #4: Right . And dashboard fulfillment services is now part of , you know , the capability offering , you know , online ordering and fulfillment with drive always have been there .
Speaker #4: But so as you kind of think about this , you know , DoorDash is a two sided , you know , player in the in the retail realm where obviously there's the consumer front , but there's also the B2B front with retailers .
Speaker #5: Yeah . Lee , on the payback period . Right . Like , look , nothing is really changing about how we operate the business , right .
Speaker #5: Like , look , when we think about investments and payback , I think of it in terms of two dimensions . One is it is it ultimately improving retention order frequency .
Speaker #5: The other one is, is it driving free cash flow in IRR. So that framework and how we operate that discipline is not changing.
Speaker #5: Let me give you an example . Right . We start with small levels of investment as we find product market fit . We continue to increase the level of investment .
Speaker #5: Look at our new vertical business where we've increased our unit economics year over year . Look at our overall international business that's close to being contribution profit , breakeven .
Speaker #5: That just goes to show you the discipline of us being operators in how we operate the business. As you think about the investment areas, look, I'm in the software side.
Speaker #5: The payback is gonna be shorter , but our goal is to continue to invest because that's going to drive revenue . Whereas if you think about our tech stack , all of that is going to increase our tech feature development velocity , which ultimately is going to help us release features faster , which is going to drive retention and unit economics .
Speaker #5: Right . That's the distinction we have as we think about our investment areas . But the core philosophy and discipline in how we are operating the business , that is not changing .
Speaker #18: Helpful color . Thank you .
Speaker #1: Next question comes from the line of Justin Patterson with KeyBanc . Your line is open .
Speaker #10: Great . Thanks for taking the question . This is Myles Jakubiak on for Justin . I'd like to start with one on grocery .
Speaker #10: Just curious if you're seeing, you know, you had some nice grocer ads during the quarter. Curious if you're seeing any increase from grocers to move a bit faster on the delivery side in coming to the platform.
Speaker #10: And then one just on going out or dining in-person dining . So you had the going out launch and some seven room stuff launched during the quarter .
Speaker #10: So curious if you could just expand on , how you view that dining out experience fitting within the DoorDash ecosystem and the opportunity there ?
Speaker #10: Thank you .
Speaker #4: Sure . Hey Myles , it's Tony , I'll start and feel free to add in here . Ravi look on the first question with grocery .
Speaker #4: You're right . I mean we're we're super excited about you know all the selection that we're adding . You know including Kroger who we announced in the recent quarter I think I think the short version of this is we've never been in a better position in , in grocery .
Speaker #4: And , you know , we're also adding across the board , not just , you know , the top grocers in terms of , you know , kind of the national scale players , but also the local grocers and really across the board .
Speaker #4: I think every grocer is recognizing that DoorDash is now the leader in order volume in this category . And the leader in in acquiring new customers .
Speaker #4: And so this is something that , you know , I think , you know , people understand . And as a result , you know , it's become more that way .
Speaker #4: I also think it's interesting that, you know, some of these grocers, kind of similar to the comment I made earlier about retail, are starting to ask us to help with other things.
Speaker #4: And so I think there's an interesting there's always this kind of two sided opportunity for us really on the on the certainly on the consumer front , but also B2B with respect to going out .
Speaker #4: You're right . You know , going out has been an experiment that we've been running for a while . And we kind of shipped , you know , more recently in some select markets .
Speaker #4: And , and , and it's going , you know , really well , I mean , I think this kind of goes to maybe some commentary , I forget whether it was for earnings calls ago or five where , you know , we talked about there's more than one way to connect every local business and every local consumer .
Speaker #4: Today . I know we're known , you know , predominantly as bring everything to you , whether you're at home , you're in the office or wherever you are .
Speaker #4: But there's no reason why we can't bring you to everything . And again , the goal of the company is to connect every local business with every local consumer .
Speaker #4: And the consumer front . We obviously have , you know , the largest audience with the most number of , you know , kind of frequency , not just in terms of buying , but also just in opening the app and the searches and , and everything else that they take action on in the product .
Speaker #4: But we also have quite a lot of information with merchants because of our B2B commerce platform . A lot of these merchants are increasingly asking us to help them .
Speaker #4: You know , from not just online ordering . We have hundreds of thousands of those businesses , but , you know , analytics and marketing solutions and and I think with the addition of a product like seven rooms , we can really democratize this ability that , you know , I think a lot of tech companies have and give it to every small , medium and large restaurant to be able to understand all of their guests and really allow the restaurants , you know , to maximize whatever might be the best thing to maximize for them at that moment in time .
Speaker #4: Sometimes it's going to be driving new customers . Other times it's going to be driving adoption of a new product . And and that's really what , you know , the point of of going out is it's really to introduce customers to restaurants that they , you know , maybe never tried before or add an occasion to build increasing loyalty to an existing restaurant that they do have a relationship with .
Speaker #4: You know , today , DoorDash effectively , you know , has a lot of order frequency . On bringing things to you . And we have almost no order frequency on having you go to a store .
Speaker #4: But we believe that can change .
Speaker #10: That's helpful . Thank you .
Speaker #1: And our last question comes from the line of Ron Josey with city . Your line is open .
Speaker #13: That's great . Thanks for thanks for taking the question . You know , going back to Rue really quick . Understood . The investments needed here and the acquisition literally closed .
Speaker #13: What , around four weeks ago . But we'd love to hear what you all think or learned thus far on ways to improve the product and the consumer experience .
Speaker #13: As we think about these investments . And then I believe it was mentioned in the letter , the press release , that unit economics were flat quarter to quarter for US restaurants and just wondering if that's a change directory or anything to call out there .
Speaker #13: Thank you .
Speaker #19: Yeah , I can start Ron on rue . Maybe . Robbie ,
Speaker #4: If you want to take the unit economics question on on rue . I think there's a lot that we can we can do .
Speaker #4: And I think that's mostly because , you know , DoorDash has ran just a lot of experiments , you know , at this point , you know , tens of thousands of experiments .
Speaker #4: And as you can probably guess , the vast majority of those experiments fail and never make it to you as a customer . But we have , you taken a lot of these , you know , lessons that have done well and brought them over to volt , for example .
Speaker #4: And we think that there's a lot of experiments that volt has ran to that can be portable to rue . In addition to those that would come from , from DoorDash .
Speaker #4: And so I there's no like one thing I think that like , you know , I probably bore you with , you know , the list of features that that that would be talking about .
Speaker #4: But this really is the same answer to the question of how is it possible that DoorDash marketplace , can the US marketplace that is can continue to grow faster at higher volumes and increase ?
Speaker #4: You know , our penetration with with users ? And it's because there is no one thing there is , you know , thousands of small things that add up in terms of how we deliver on the selection , the quality , the affordability and the service .
Speaker #4: And so it would be a collection of things that that we've already identified . And , and we're excited to shift them .
Speaker #5: On . On the second point around us restaurant , I mean , look , the business is doing well . We talked about the fact that the business is growing .
Speaker #5: Unit economics are still progressing quite nicely . Look , quarter to quarter , there's , you know , moving parts . But overall , I mean really excited about what you're seeing from a unit economics perspective .
Speaker #5: I think a few years ago we talked about the fact that the incremental margins over the last eight quarters average was about 7% .
Speaker #5: That's continues to be the case . I mean , this business is growing , at a larger scale , accelerating as well as , the unit economics continue to progress quite nicely .
Speaker #5: So we're really pleased with how the restaurant business is doing in the US .
Speaker #13: Thank you , thank you . Robbie .
Speaker #5: No problem .