Q2 2026 DoorDash Inc Earnings Call

August 5, 2026

Speaker #1: Today's opening statement: we will host a question-and-answer session, and if you would like to ask a question, please press star 1 on your telephone keypad.

Speaker #1: To withdraw your question, press star 1 again. I will now hand the call over to Weston Twigg. Please go ahead.

Speaker #2: Thanks, Connor. good afternoon, everyone, and thanks for joining us for our Q2 2026 earnings call. I'm pleased to be joined today by co-founder and chair and CEO, Tony Xu, and CFO, Ravi Inukonda.

Speaker #1: Hello, everyone. Thank you for joining us, and welcome to the DoorDash Q2 2026 earnings call. After today's opening statement, we will host a question-and-answer session; if you would like to ask a question, please press *1 on your telephone keypad.

Operator: Hello, everyone. Thank you for joining us, and welcome to the DoorDash Q2 2026 earnings call. After today's opening statement, we will host a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. To withdraw your question, press star one again. I will now hand the call over to Weston Twigg. Please go ahead.

Speaker #2: We'll be making forward-looking statements during today's call, including and without limitation, our expectations for our business, financial position, operating performance, profitability, our guidance, strategies, capital allocation approach, and broader economic environment.

Speaker #1: To withdraw your question, press *1 again. I will now hand the call over to Weston Twigg. Please go ahead.

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 findings, including our most recent formed 10-K and 10-Q.

Speaker #2: Thanks, Connor. Good afternoon, everyone, and thanks for joining us for our Q2 2026 earnings call. I'm pleased to be joined today by co-founder, chair, and CEO Tony Hsu, and CFO Ravi Inakonda.

Weston Twigg: Thanks, Connor. Good afternoon, everyone, thanks for joining us for our Q2 2026 earnings call. I'm pleased to be joined today by co-founder, Chair, and CEO, Tony Xu, and CFO, Ravi Inukonda. We'll be making forward-looking statements during today's call, including, without limitation, our expectations for our business, financial position, operating performance, profitability, our guidance, strategies, capital allocation approach, and the broader economic environment. 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 forms 10-K and 10-Q. 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. During this call, we will discuss certain non-GAAP financial measures.

Speaker #2: You should not rely on a forward-looking statement as predictions of future events or performance. We disclaim any obligation to update any forward-looking statements except as required by law.

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, profitability, our guidance, strategies, capital allocation approach, and the broader economic environment.

Speaker #2: During this call, we will discuss certain non-GAAP financial measures. Information regarding our non-GAAP financial measures, including the 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 ir.doordash.com.

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: 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. Finally, this call is being audio webcasted on our investor relations website, and audio replay of the call will be available on our website shortly after the call ends.

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. 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 in addition to our GAAP results and are not intended to be a substitute for our GAAP.

Speaker #2: Operator, I'll pass it back to you, and you can take our first question.

Speaker #1: We will now begin the question-and-answer session. Please limit yourself to one question. And again, if you would like to ask a question, please press star 1 on your telephone keypad.

Weston Twigg: 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. In addition to our GAAP results, they're not intended to be a substitute for our GAAP website. An audio replay of the call will be available on our website shortly after the call ends. Operator, I'll pass it back to you and you can take our first question.

Speaker #1: To withdraw your question, press star 1 again. We also ask that you pick up your handset when asking a question, and if you're muted locally, please remember to unmute your device.

Speaker #1: Please stand by while we compile the Q&A roster. The first question comes from Michael Morton of Moffat Nathason. Your line is open. Please go ahead.

Speaker #2: An audio replay of the call will be available on our website shortly after the call can take our first question.

Speaker #3: Good evening, guys. Thank you for the question. I wanted to ask about the grocery business. as you've talked about improving the unit economics, from our understanding, there are some grocers on the platforms who are playing your platform in specifically, who are paying effectively zero or very low take rates.

Speaker #1: Question and answer session. Please limit yourself to one question. And again. To withdraw your question, press *1 again. We also ask that you pick up your handset when asking a question, and if you're muted.

Operator: Question and answer session. Please limit yourself to one question. Again, to withdraw your question, press star one again. We also ask that you pick up your handset when asking a question, and if you're muted the Q&A roster. Michael Morton of MoffettNathanson, your line is open. Please go ahead.

Operator: Question and answer session. Please limit yourself to one question. Again, to withdraw your question, press star one again. We also ask that you pick up your handset when asking a question, and if you're muted the Q&A roster. Morton of MoffettNathanson, your line is open. Please go ahead.

Speaker #3: They came on looking to see if you could drive demand and how well they could work with DoorDash. I was wondering if that's the case and then what the opportunity is to reprice these relationships going forward, maybe pushing some of the affordability burden that's landing on DoorDash right now back to the grocers.

Speaker #1: The Q&A roster. Morton of Moffett Nathason. Your line is open. Please go ahead.

Michael Morton: Hi. Good grocery business, as you talked about improving the unit economic grocers on the platforms who are paying your platform, and specifically, who are paying effectively to drive demand and how well they could work with DoorDash. I was wondering if that's going forward, maybe pushing some of the affordability burden that's landing on DoorDash right now back to the grocers. Thanks.

Speaker #3: Hi, good evening. First-rate business. As you've talked about improving the unit economics versus on the platforms, who are playing on your platform specifically?

Speaker #3: Thank you.

Speaker #2: Yeah. Hey, Michael. it's Tony. I, I can start, and feel free to chime in, Ravi. you know, what I would say is, like, we see extremely strong performance in our grocery business.

Speaker #2: it's the fast, you know, growing part of our marketplace business, and we have, you know, very healthy relationships with all of the partners, on the platform.

Speaker #3: Who are paying effectively. To drive demand and how well they could work with DoorDash. I was wondering if that's. It's going forward, maybe pushing some of the affordability burden that's landing on DoorDash right now back to the grocers.

Speaker #2: I mean, in, in terms of the economic relationships, I'm not going to really comment about, you know, any one in particular. I mean, what I will say is that when you are the fastest grower, in the market for them, and you are their source of growth, you know, you know, put a different way, we might be 100% of the growth that they see, in terms of their actual business.

Speaker #2: you certainly, you know, have opportunities to grow your business with them, as well as improve, you know, your relationships with them. I mean, I think if you look at, you know, our business as a whole, I think one of the things you see from, you know, this quarter and frankly, you know, I think many of the time periods leading up to now, is that there are many sources of improving economics.

Speaker #2: Yeah. Hey, Michael. It's Tony. I can start, and feel free to chime in, Ravi.

Tony Xu: Yeah. Hey, Michael. It's Tony. I can start and feel free to chime in, Ravi. Our grocery business. It's the fastest growing part of our marketplace business, and we have very healthy relationships with. In terms of the economic relationships, I'm not going to really comment about anyone in the market for them, and you are their source of growth. Put a different way, we might be 100% of the growth that they see in terms of their actual business. You certainly have opportunities to grow your business with them as well as improve your relationships with them. I think if you look at our business as a whole, I think one of the things you see from this quarter, and frankly, I think many of the time periods leading up to now is that there are many sources of improving economics.

Speaker #3: Our grocery business. It's the fastest growing part of our marketplace business, and we have very healthy with.

Speaker #2: In terms of the economic relationships, I'm not going to really comment about any one.

Speaker #2: We have improving unit economics across all of our categories. you have improving unit economics in our restaurants business too. You have improving unit economics in our, different geographies in which we operate.

Speaker #3: In the market for them, and you are their source of growth. Put a different way. We might be 100% of the growth that they see in.

Speaker #2: You have increasing adoption of our, DashPass program, as well as, you know, accelerating growth in our ads business. And, and I think when you add all of that in, you know, we have a business in which there are many levers in which we can control you know, the, the kind of financial profile, in order to make great investments.

Speaker #3: In terms of their actual business, you certainly have opportunities to grow your business with them as well as improve your relationships with them. I mean, I think if you look at our business as a whole, one of the things you see from this quarter, and frankly, I think many of the time periods leading up to now, is that there are many sources of improving economics.

Speaker #2: You know, ultimately, we're here always seeking the next best investment. It doesn't mean that we always make those investments, but when we see the opportunity, we're always leaning in that includes, you know, all of the work that we're doing in grocery, which we think there's a long runway.

Speaker #2: as well as all the other opportunities in front of us.

Speaker #3: With improving unit economics across all of our categories, you have improving unit economics in our restaurants business too. You have improving unit economics in our different geographies in which we operate.

Tony Xu: We have improving unit economics across all of our categories. You have improving unit economics in our restaurant business too. You have improving unit economics in our different geographies in which we operate. You have increasing adoption of our DashPass program, as well as accelerating growth in our ads business. I think when you add all of that in, we have a business in which there are many levers in order to make great investments. Ultimately, we're here always seeking the next best investment. It doesn't mean that we always make all of the work that we're doing in grocery, which we think there's a long runway.

Speaker #4: And Mike, just to add, right, like, look, I mean, if you take a step back and think about our overall grocery business as well as new verticals, we talked about the fact that we became order volume share leaders in Q4.

Speaker #3: You have increasing adoption of our DashPass program as well as accelerating growth in our ad business. And I think when you add all of that in, we have a business in which there are many levers and.

Speaker #4: We've continued to extend that, lead. Two, when you look at the underlying growth in MAUs, which is the number of users that use categories outside of restaurants, that number is growing order frequency is growing, we talked about the fact in the letter that basket sizes are growing.

Speaker #3: In order to make great investments. Ultimately, we're here always seeking the next best investment. It doesn't mean that we always make all of the work that we're doing in grocery, which we think there's a long runway.

Speaker #4: If you look at our historic forwards, consumers are using us for more use cases, which is driving overall basket sizes higher. Last call, I think I mentioned the fact that we expect our overall new verticals business to be gross profit positive.

Speaker #4: We're on track for that in the second half of the year. Look, I mean, we think about the business as a whole. We think about, you know, retention, order frequency, as well as underlying improvement in unit economics.

Speaker #2: And Mike, just to add, right? Look, I mean, if you take a step back and think about our overall grocery business as well as new verticals, we talked about the fact that we became.

Ravi Inukonda: Mike, just to add, look, if you take a step back and think about our overall grocery business as well as new verticals, we talked about the fact that we became to. When you look at the underlying growth in MAUs, which is the number of. Frequency is growing. We talk about the fact in the letter that basket sizes are growing. If you look at our historic cohorts, consumers are using us for more use cases, which is. We expect our overall new verticals business to be gross profit positive. We are on. We think about retention, order frequency, as well as underlying improvement in unit economics, and they're all headed in the right direction for us.

Speaker #4: And they're all headed in the right direction for us.

Speaker #1: The next question is from Mark Mahaney from Evercore ISI. Your line is open. Please go ahead.

Speaker #2: When you look at the underlying growth in MAUs, which is the number of—frequency is growing. We talk about the fact, in the letter, that basket sizes are growing.

Speaker #5: Thanks. I'll ask a question about Deliveroo. You've had, now three-quarters in the role of kind of accelerating growth. I think in orders, yes, and in, GOV, and in, I think in revenue.

Speaker #2: If you look at our historic cohorts, consumers are using us for more use cases, which is. We expect our overall new vertical business to be gross profit positive.

Speaker #5: So just, peel that back a little bit there. the, how many different opportunities you've had, what, what you've been able to pull, what you've been able to change in order to, to deliver that better performance and, and it's a little hard to tell, but is it also showing up on the bottom line, or are you able to have you been finding ways to improve the profitability of Deliveroo as well?

Speaker #2: We are on. We think about retention, order frequency, as well as underlying improvement in unit economics. And they're all headed in the right direction for us.

Speaker #5: Thank you very much.

Speaker #2: Hey, it's Tony. I can start. you know, what I would say is, on, you know, Deliveroo is it, it really is a story that probably started way back in 2021.

Speaker #1: The next. Is open. Please go ahead.

Operator: The next is open. Please go ahead.

Speaker #2: You know, when we first made, our, our, our first, large acquisition overseas, which was with Volt. And we've learned a ton, obviously, about building our own US business.

Speaker #3: Thanks. I'll ask a question about Deliveroo. You've had now three quarters in the role of kind of accelerating growth, I think. I think in revenue.

[Analyst]: Thanks. I will ask a question about Deliveroo. You have had now three quarters in a row of kind of accelerating growth, I think. I think in revenue. Just peel that back a little bit there. What you have been able to pull, what you have been able to change in order to deliver that better performance, and it is a little hard to tell, but is it also show the ability of Deliveroo as well? Thank you very much.

Speaker #2: and we've learned a lot in terms of how Volt has operated in different geographies across Europe, as well as how to integrate, you know, the lessons that we've learned, as well as the lessons that maybe don't apply.

Speaker #3: So just peel that back a little bit there. What you've been able to pull, what you've been able to change in order to deliver that better performance and it's a little hard to tell, but is it also showing.

Speaker #2: into each one of these local geographies. So what you're seeing in Deliveroo, I, I agree with you, Mark, is, just accelerating performance. You know, frankly, across the board.

Speaker #3: Affordability of Deliveroo as well. Thank you very much.

Speaker #2: and, that's super exciting, because, you know, I, I think, A, it's validation that our integration work is really working. and that the lessons that we've learned in building these marketplace businesses around the world, do translate into some of these, you know, very meaningful geographies and foundational places where you know, we're just seeing, you know, growth in all of our big international markets.

Speaker #2: You know, what I would say on Deliveroo is it really is a story that probably started way back in.

Tony Xu: What I would say on Deliveroo is, it really is a story that probably started way back in 20 large acquisition overseas, which was with Wolt. We have learned a lot in terms of how Wolt has operated in different geographies across Europe, as well as how to integrate the lessons that we have learned as well geographies. What you are seeing in Deliveroo, I agree with you, Mark, is. That is super exciting, because I think, A, it is validation that our integration work building these marketplace businesses around the world do translate. We are just seeing growth in all of our big international markets. This does not even include the majority on building a single tech stack. As that work kind of we expect to see even more benefits as time goes on.

Speaker #3: That large acquisition overseas, which was with Wolt. And we've learned a. And we've learned a lot in terms of how Wolt has operated in different geographies across Europe, as well as how to integrate the lessons that we've learned, as well.

Speaker #2: and, and this doesn't even include, you know, the majority of benefits that we expect to see once we actually finish all of our work on building a single tech stack.

Speaker #2: So, you know, as that work kind of, you know, comes more fully online, toward the beginning of next year, you know, we expect to see even more benefits, as time goes on.

Speaker #3: Geographies. So, what you're seeing in Deliveroo, I agree with you, Mark, is— and that's super exciting because I think, A, it's validation that our integration work—

Speaker #4: And Mark, just to put a finer point, right, like, when you look at the actual performance of Deliveroo itself, to your point, volume growth or MAU growth or subscription growth, actually, when you look at it on a year-over-year basis, has been the highest that we've seen in the last couple of years.

Speaker #4: At the same point, to your second part, part of your question, we've increased the unit economics as well, but the way in which we're operating the business is very similar, right?

Speaker #3: Building these marketplace businesses around the world do translate. We're just seeing growth in all of our big international markets. And this doesn't even include the majority.

Speaker #4: We're finding great opportunities to drive investments back in selection, quality subscription is a big area of focus for us. So we're going to continue to invest back in the business.

Speaker #4: And my expectation is we'll continue to drive higher top line, as well as meet the profitability targets that we set out, you know, in the last letter.

Speaker #3: On building a single tech stack—so as that work continues, we expect to see even more benefits as time goes on.

Speaker #1: The next question is from Nikhil Devnani. Bernstein. Your line is now open. Please go ahead.

Speaker #5: Hi. Thanks for taking my question. I'll stick with the theme of international. And I guess broadly, there's a, I guess, a common perception that international might be lower quality growth because maybe you're not number one everywhere, or maybe the competitive set now is, is better funded and more consolidated today.

Speaker #2: And Mark, just to put a finer point, right? When you look at the actual performance of. Description growth. Actually, when you look at it on a year-over-year basis, it's been the highest that we.

Ravi Inukonda: Mark, just to put a finer point, right? When you look at the actual performance of subscription growth, actually, when you look at it on a year-over-year basis, has been the highest that we have. We have increased the unit economics as well, but the way in which we are operating the business is very similar, right? Finding great opportunities to drive invest. We are going to continue to invest back in the business, and my expectation is we will continue to drive last letter.

Speaker #2: Part of your question. We've increased the unit economics as well, but the way in which we're operating the business is very similar, right? We're finding great opportunities to drive investment.

Speaker #5: I would love your perspective on that overall sentiment. And, and really how you structurally see, the longer-term earnings power or quality of growth out of these international markets relative to the domestic business.

Speaker #2: So I'm going to continue to invest back in the business, and my expectation is we'll continue to drive. Last letter.

Speaker #5: And how important is it to have a pure market share number versus, more minim-minimum viable scale, in these jurisdictions that allow you to then operate well?

Speaker #5: Thank you.

Speaker #1: The next question is now open. Please go ahead.

Operator: The next question is now open. Please go ahead.

Speaker #2: Yeah. Hey, Nikhil. It's Tony. I can start. yeah, I questions that you're asking in, you know, the, the first is really, what do we see happening internationally?

Speaker #3: Hi. Thanks for taking my. I guess broadly, there's a, I guess, a common perception that international might be lower quality growth because maybe you're not number one every.

[Analyst]: Hi, thanks for taking. Broadly, there's a common perception that international might be lower quality growth because maybe you're not number one every consolidated today. I would love your perspective on that over the longer-term earnings power or quality of growth out of these international markets relative to the domestic business. There's more minimum viable scale in these jurisdictions.

Nikhil Devnani: Hi, thanks for taking. Broadly, there's a common perception that international might be lower quality growth because maybe you're not number one every consolidated today. I would love your perspective on that over the longer-term earnings power or quality of growth out of these international markets relative to the domestic business. There's more minimum viable scale in these jurisdictions.

Speaker #2: You know, our aspiration is to be the global leader in local commerce. And, you know, we think we are best positioned to do that, given that we bring the deepest and the broadest, portfolio of products in order to serve those audiences.

Speaker #2: But like you said, it's a game that is played locally. you know, there are no global network effects in these kinds of businesses. And, you know, one of the points you raise is, is, is the right one where, you know, it's sometimes there isn't an, an obvious tie between you know, the market position and, you know, kind of your economic, profile.

Speaker #3: Consolidated today. I would love your perspective on that over. The longer-term earnings power or quality of growth out of these international markets relative to the domestic business.

Speaker #3: Is more minimum viable scale in these jurisdictions.

Speaker #2: And that's because it is a minimum viable scale business. You know, that said, though, when I actually look at our current execution, you know, the vast majority of our international, business is concentrated in our top 10 markets outside of the US.

Speaker #2: Yeah. Hey, Nikhil, it's Tony. I can start. Yeah, I think there are a couple of different questions that you're asking in.

Tony Xu: Hey, Nikhil, it's Tony. I can start. I think there are a couple of different questions that you're asking. In aspiration is to be the global leader in local commerce. You know portfolio of products in order to serve those audiences. But like you said, it's a game that is played locally. There are one of the points you raise is the right one where, you know, it market position and your economic profile. That's because it is a minimum viable scale. The vast majority of our international business is markets, we are the leader, or we are a very strong number two, and we're gaining share in all of the markets. Some of these markets include places, Israel, Canada. I can keep going.

Speaker #2: And in those markets, we are the leader. or we're a very strong number two, and we're gaining share in all of the markets. You know, some of these markets include places like the UK, Italy, Germany, the Nordics, Israel, Canada.

Speaker #3: Our aspiration is to be the global leader in local commerce. And we have a portfolio of products in order to serve those audiences. But like you said, it's a game that is played locally.

Speaker #2: I mean, there's I, I can keep going. but we like kind of what we see. And, and, and it kind of really is, a follow-on to the previous question where, you know, Ravi was talking about how we're making improvements, you know, fundamentally to the actual core propositions to all the audiences.

Speaker #3: There are.

Speaker #2: One of the points you raise is the right one where you.

Speaker #2: We're making you know, we're, we're offering wider selection, better prices, better quality of delivery in terms of reliability, accuracy, and speed. And we're improving our customer service.

Speaker #3: Market position and kind of your economic profile. And that's because it is a minimum viable scale. The vast majority of our international business is.

Speaker #2: And so whenever I see that, and I also see the opportunity for the runway to bring our portfolio of B2B products, which, you know, have done really well in the US, but even have more opportunity outside, of the US, just given the more nascent development of digital, technologies in the restaurant and retail categories, overseas, I mean, I just think the potential is very, very big.

Speaker #4: And Nikhil, I mean, the results are pretty clear, right? We've talked about the fact that on Deliveroo side, I mean, the growth is accelerating.

Tony Xu: We A follow-on to the previous question where Ravi was talking about how we're making improvements fundamentally to the actual core propositions to all the audiences, better prices, better quality of delivery in terms of this. Whenever I see that, and I also see the opportunity for the runway to bring our portfolio of B2B products, which

Canada. I mean, there's I I can keep going. Um, but we

Speaker #4: In fact, when you look at the underlying cohorts, the growth is, you know, some of the highest that we've seen over the last couple of years.

Speaker #4: Even outside of that, when I look at the portfolio excluding Root, we are growing. MAUs are growing. The order frequency is growing. World Plus, in fact, our subscription program in World had one of the best quarters, which is a record quarter in terms of overall paid subscriber growth.

A follow-on to the previous question, where, you know, Robbie was talking about how we're making improvements, you know, fundamentally to the actual core propositions to all the—

Better prices, better quality of delivery in.

Speaker #4: At the same point, it's not just purely about growth for us, right? Like, we are improving the unit economics, not just across Root, but across World as well.

Speaker #4: When you look at whether it's gross profit or contribution, both of them have continued to improve on a year-over-year basis.

And so whenever I see that and I also see the opportunity for the runway to bring our portfolio of B2B products which

Tony Xu: Aside of the US, just given the more nascent front in retail categories overseas, I just think the potential is very, very big.

Speaker #1: The next question is from Deepak Mathivanan. From Canter Fitzgerald.

aside, um, of the US just given the more Nathan

Speaker #6: Great. Thank you. Tony, last month, Andy Frank talked with Boris at Claude about how Dash is aiming to translate AI spend into outcomes, somewhat closer to the business metrics now, while also letting employees to experiment aggressively with AI tools.

Ravi Inukonda: In terms of the results, growth is accelerating. In fact, when you look at the underlying cohorts, when I look at the portfolio excluding Goop, we are growing, MAUs are growing, order frequency is growing. Wolt+, in fact, our subscription program subscriber growth. At the same point, it's not just purely about growth for us, right? When you look at whether it's gross profit or contribution, both of them have continued to improve on a year-over-year basis.

Restaurant and retail categories overseas—I mean, I just think the potential is very, very big.

And again, that is the result.

Speaker #6: Can you talk about where you're seeing this attribution clearly now, and how we should broadly think about AI spend at Dash over the next 12 to 18 months?

What is accelerating? In fact, when you look at the underlying cohorts, the goal is, you know...

Speaker #6: And then maybe one for you, Ravi, US restaurant GOV acceleration. Can you expand on the drivers of the growth? I know weather was disruptive last quarter, but you also had factors like World Cup, curious if we can talk a little bit more about the factors of acceleration in QQ.

When I look at the portfolio excluding group, we are growing and may use are growing, lot of frequency is growing World. Plus in fact our subscription program in

Subscriber growth at this point is not just purely about growth for us, right? Like, we are—

Speaker #6: Thank you so much.

Speaker #2: Yeah, sure. on the AI question, Deepak, I would say, you know, a couple things. You know, the, the first thing is we want to make sure that our i you know, any technology that we meet, you know, whether it's AI or, frankly, anything else, that it's actually you know, rooted in delivering a better customer experience.

When you look at, whether it's gross profit or contribution, both of them have continued to improve on a year-over-year basis.

Weston Twigg: Derek, can we take the next question?

Speaker #2: Because if it's not, I'm not exactly sure what problem we're actually trying to solve. and, and, and I don't think i-i-it makes sense to just play with the technology, you know, for the technology's sake.

Speaker #2: And so when you look at, you know, some of the things that we've seen success, you know, for example, one of the more recent products we launched, was called DoorDash Ask, which is an ordering agent that helps customers discover restaurants that are similar to ones that they've ordered in the past, but that are new to them.

There, can we take the next question?

Speaker #2: That helps them build a grocery cart in under two minutes. So really solving actual pain points that we see in using, you know, an in-increasingly larger and, you know, more diversified marketplace.

Operator: The next question is from Deepak Mathivanan from Cantor.

Uh, the next question is from

Can.

Weston Twigg: Joel.

Deepak Mathivanan: Thanks for taking the question.

Speaker #2: that's one example. You know, on the merchant side, we've seen, automation in building catalogs, for retailers or menus for restaurants, which includes all of the photos, the metadata around, you know, all of the different, you know, SKUs and items, so that we can actually onboard a merchant faster in order to get sales for sales growth.

Thanks for taking the question.

Tony Xu: Great. Thank you. Tony, last month, played AI spend into outcomes somewhat closer to the business metric now. Can you talk about where you're seeing this attribution clearly now, and how we should broadly think about AI spend at Dash? Restaurant GOV acceleration. Can you expand on the drivers of the growth? I know, curious if you can talk a little bit more about the factors of acceleration in Q2. Thank you so much. Yeah, sure. We want to make sure that any technology, that it's actually rooted in delivering a better customer experience.

Great. Thank you. Um, Tony last month and

Play day, I spend into outcomes, somewhat closer to the business metrics now.

Speaker #2: You know, for Dashers, we're seeing improvements in routing as well as, you know, how we can help Dashers you know, find the best areas to Dash.

Can you talk about where you're seeing this attribution? Clearly now, and how we should broadly, think about AI spended Dash over the next

Speaker #2: Those are some examples of, you know, how we actually have you know, applied AI in a way that is actually meaningful in terms of driving customer outcomes, which ultimately deliver business results.

Restaurant goe acceleration. Can you expand on the drivers of the growth? I know.

Curious, if you can talk a little bit more about the factors of acceleration in 2q, thank you so much.

Speaker #2: You know, the other thing that we've done, is, you know, kind of with all things that DoorDash, we care as much about, you know, how we do it, in, in order to be efficient as we do about allowing some degree of inefficiency towards invention.

Yeah, sure. Um, on the

Is we want to make sure that our you know any technology.

Speaker #2: And, you know, we've built a lot of tools, you know, tools like DashBench and other, you know, systems internally, that allow us to model you know, pr the appropriate, tools, a-and, and give those tools, you know, t-to be used for the right level, of token spend or intelligence required.

Tony Xu: Because if it's not, I'm not exactly sure I don't think it makes sense to just play with the technology. For example, one of the more recent products we launched, was called DoorDash Ask, which is an ordering agent that helps customers discover but that are new to them, that helps them build a grocery cart in under 2 minutes using an increasingly larger and more diversified marketplace. That's one example.

That it's actually, you know, rooted in delivering a better customer experience because if it's not I'm not exactly sure.

I don't think it makes sense to just play with the technology, you know, for the tech.

Speaker #2: And so, I think those are some of the things i-in which we found are, are, are, ourselves, e that's kind of our approach in terms of how we've applied it towards AI or, frankly, any technology.

you know, for example, 1 of the more recent products we want, uh, was called door Dash ask, which is an ordering agent that helps customers discover,

but that are new to them, that helps them build a grocery card in under 2 minutes.

Speaker #2: It's why we're excited to keep going and lean in, in a way that I think is disciplined on the one hand, but on the other hand, allows us to bring real customer benefits.

Using.

Tony Xu: On the building catalogs, for retailers or menus around all of the different SKUs and items so that we can actually onboard a merchant faster in order to get improvements in routing. Those are some examples of how we actually have applied AI in a way that is actually meaningful. Thing that we've done is, kind of with all things at DoorDash, we do it in order to be efficient, as we do about allowing some degree of inefficiency towards invest tools like DashBench and other, the appropriate tools, and give those tools intelligence required. I think those are some of the things in which kind of our approach in terms of how we've applied it towards AI or frankly any technology. It's why we're excited to keep going and lean in, allows us to bring real customer benefits.

You know, an increasingly larger and um you know, more Diversified Marketplace, um, that's 1 example. You know, on the

Speaker #4: Hey, Deepak, when you're, second question around restaurant growth, yeah, I mean, restaurant growth was quite strong in the quarter if you look at it.

Speaker #4: In fact, growth accelerated from Q1 to Q2. A lot of the growth is coming from just increase in DashPass subscribers. A couple points, right?

Building catalogs for retailers or menus.

Speaker #4: We wrote in the letter as well. We added more number of DashPass subscribers in the last year compared to the two prior years. Number two, when I look at the paid subscriber growth in DashPass, it was one of the highest that we've seen in the last couple years.

around, you know, all of the different SKUs and items, so that we can actually onboard a merchant faster in order to get

Improvements in routing as well as.

Speaker #4: A lot of that is the underlying product continuing to get better. A lot of that is the e-increased investment that we've made in selection as well as quality.

Speaker #4: In fact, if you look at mature cohorts, they're continuing to engage higher than what we've seen before. New consumers continue to be quite strong as well.

those are some examples of you know, how we actually have you know, applied AI in a way that is actually meaningful in terms of

Speaker #4: Ultimately, all of this is driving the growth that you're seeing in restaurants. And what I would also say is, if you think about Q2 of last year, it was unusually strong for us.

Thing that we've done is, you know, kind of with all things that door Dash.

Speaker #4: So comping against what was a strong Q2 of last year, and still putting up the strong numbers in Q2, that's a true testament to, A, the demand that we're seeing in the business, as well as the underlying improvements in product.

We do it, uh, in order to be efficient, as we do, by allowing some degree of inefficiency towards invest.

Speaker #1: The next question is from Dominic Ball of Ross Childs & Co. Redburn. Your line is now open. Please go ahead.

like Dash bench and other, um, uh, you know,

Speaker #7: Hey, guys. Hey, guys. Yeah, hey, thank you. Thank you for the question. interesting commentary about kind of investing more in merchant services and software.

Speaker #7: I think it's somewhat well-known that, you know, DoorDash has been testing its POS product in a few markets in the US with both SMBs and enterprise restaurants.

you know, the appropriate um uh tools uh and and give those tools, uh, you know to

Intelligence required. And so I think those are some of the things in which

Speaker #7: So which is lots to know about how, how these test trials are going, what products and features are kind of resonating, what is kind of driving some restaurants to maybe choosing to use DoorDash here, and then how do we think about a potential more broader commercial launch going forward?

Kind of our approach in terms of how we've applied it towards AI or, frankly, any technology—it's why we're excited to keep going and lean in, um.

Speaker #7: Thanks, guys.

allows us to bring real customer benefits.

Speaker #6: Our vision is to

Ravi Inukonda: Quite strong in the quarter, if you look at it. In fact, growth accelerated from Q1 to Q2. A lot of the growth is coming from We added more number of DashPass subscribers in the last year compared to the DashPass. It was one of the highest that we've seen in the last couple of years. A lot of that is the underlying product continuing to get better. A lot of that is the increased investment that we made. They're continuing to engage higher than what we've seen before. just seeing in restaurants. What I would also say is, if you think about Q2 of last year, it was unusually strong for us. So comping against what was a strong Q2 of last year. To either demand that we are seeing in the business as well as the underlying improvements in product.

Speaker #2: be the best partner, to, you know, every local business. That probably, is pretty clear from the missions in stay one. and the way we do this is that we want to give every business, you know, the same tools that we've built for ourselves so that they can grow their digital business.

Quite strong in the quarter, if you look at it. In fact, uh, growth accelerated from q1 to Q2 a lot of the growth is coming from just

Speaker #2: So if you think about, you know, what that, you know, looks like, I mean, we kind of play in this ecosystem where we have you know, at le you know, at least three offerings today, right?

we added more number of dash pass subscribers in the last year from compared to the

Speaker #2: We have our marketplace, we have tools to help build the digital businesses of restaurants and retailers. In fact, you know, that business, you know, serves over 150,000 businesses and has grown 40%, you know, year over year in the quarter.

dash pass. It was 1 of the highest that we've seen in the last couple of years. A lot of that is the underlying product continuing to get better. A lot of that is the increased investment that we made.

They're continuing to engage higher than what we've seen before. New

Interesting and restaurants.

Speaker #2: And then more recently, we've introduced products, that actually drive customers inside the store. you know, some of these products, include, you know, going out, as well as reservations.

And what I would also say is, if you think about Q2 of last year, it was unusually strong for us. So, comping against what was a strong Q2 of last

Speaker #2: and then on the business side, it includes, you know, seven rooms, which is a company that we acquired about a year ago. And, you know, when I think about what, what, you know, what this ecosystem allows us to do, I mean, it allows us to help customers build their relationships with the local businesses and ideally forge, you know, regulars, for each one of these local businesses.

To the demand that we are seeing in the business, as well as the underlying improvements in product.

Operator: The next question is from Dominic Ball of Rothschild & Co Redburn.

The next question is from Dominic ball of Rothschilds and Co Redbarn.

Dominic Ball: Yeah. Hey, thank you for the question. Interesting. More well known that DoorDash has been testing its POS products in a few markets in the US with both SMBs and. What products and features are kind of resonating? How do we think about a potential more broader commercial launch going forward? Thanks, guys.

Yeah. Hey, thank you for the question. Um,

interesting.

Speaker #2: And the reason why we can do this is because we have the, you know, biggest scale as well as the deepest customer dataset, to allow us, to actually drive this engagement.

well known uh, you know, Dash has been tested and it's Poss product and a few markets in the US with both smbs and

Speaker #2: You know, for example, a customer may start by ordering delivery from the DoorDash app, and then perhaps they sign up for a loyalty program on a merchant's, you know, first-party channel, something that we've built for them.

what products and features are kind of resonating. Um,

you know, then how do we think about a potential more broader commercial or launch going forward? That's going.

Speaker #2: And, you know, when it makes sense, both DoorDash and the merchant, can, incentivize the customer to, you know, go inside the store or go inside the restaurant and actually have a meal.

Tony Xu: To every local business that probably is. Give every business the same tools that we built for ourselves so that they can grow their digital business. If you think about what that looks like, at least three offerings today, right? We have our marketplace businesses of restaurants and retailers. In fact, that business serves over 150,000 businesses. More recently, we've introduced products. Products include Going Out as well as Reservations. On the business side, it includes. When I think about what this. Customers build their relationships with the local businesses and ideally forge. The reason why we can do this is because we have the data sets to allow us to actually drive this engagement. For example, a customer may start by ordering. Sign up for a loyalty program on a merchant's first-party channel.

To you know every local business that probably um is pretty.

Speaker #2: And, and, and so w-w-when you think about the interaction effects here, what we really are able to do is be the best growth partner for all these businesses, and, you know, for consumers, give them, you know, the most choice in terms of how they actually want to interact with all these businesses.

Give every business, you know the same tools that we build for ourselves so that they can grow their digital business. So if you think about, you know what that you know, looks like

You know, at least 3 offerings today, right? We have our Marketplace.

Speaker #2: I think the proof points we kind of highlighted in our, quarterly update, are really, really strong. And, you know, w-we think that this ecosystem is one that has a very long runway.

Is of restaurants and retailers. In fact, you know that business, you know, serves over 150,000 businesses

Speaker #1: The next question is from Jason Helfstein of Oppenheimer. Your line is now open. Please go ahead.

Speaker #6: thanks. So just two questions. One, can you talk you talked a little bit about dot deliveries in, in the release. I guess, anything you want to share on how you're thinking about unit economics kind of, like, today versus where we think it goes long term, and how you think that impacts demand around, elasticity.

And then more recently, we've introduced products. Um,

Products include, you know, going out as well as reservations. And then, on the business side, it includes...

Speaker #6: And then is it possible to share the AOV for the most recent period in the chart on page three where you're comparing the restaurant versus the grocery and, and retail things?

And, you know, when I think about what you—what this...

Customers. Um,

build their relationships with the local businesses and, ideally, forge, you know,

Speaker #2: Sure. Maybe I can start with the, question on dot, and then Ravi, feel free to chime in on the second question. you know, I, I would say a few things about DoorDash dot.

and the reason why we can do this is because we have the

Speaker #2: You know, the overall vision for autonomous delivery, at least at DoorDash, is that we want to offer you know, AVs throughout the network so that we can deliver the best, you know, service to customers.

data sets.

to allow us to actually drive this engagement. You know, for example, a customer may start by ordering to

Speaker #2: You know, the best service could be the fastest delivery, the most affordable delivery, delivery from the widest selection, including from very far away places.

Tony Xu: It makes sense, both DoorDash and the merchant can incentivize the customer to go inside. When you think about the interaction effects here, all these businesses and, for consumers, give them the most choice in terms of how they actually want to interact with all these businesses. Are really, really strong, and we think that this ecosystem is-

Speaker #2: And, you know, I, I, I would say that the real secret sauce or the magic that we've learned in building DoorDash dot, is that it's really the complexity of marrying the operations with the technology, that actually allows you to, you know, even have a chance at delivering scaled autonomous delivery.

it makes sense both door Dash and the merchant um can uh incentivize the customer to you know go inside the

so, when you think about the interaction of facts here, um,

Speaker #2: you put a different way, you know, DoorDash dot or any AV, for that matter, alone will not make autonomous deliveries, you know, actually scale, certainly not at, you know, any level of, of meaningful penetration you know, for customers.

All these businesses, and for consumers, give them the most choice in terms of how they actually want to interact with all these businesses.

are really, really strong, and, you know, we think that this ecosystem,

Speaker #2: I mean, at the end of the day, you have to solve, you know, very challenging operational problems in the physical world. You have to solve, the, the loading problem.

Operator: The next question is from Jason Helfstein of Oppenheimer.

The next question is from Jason helstein of Oppenheimer.

Speaker #2: You, at the merchant, you have to estimate merchant prep times in the case of restaurants, or inventory levels in the case of retailers and grocery stores.

Jason Helfstein: Questions. One, you talked a little bit about Dot. Share on how you're thinking about unit economics kind of like today versus where we think it goes long term and how you think that Possible to share the AOV for the most recent period in the grocery and retail? Thanks.

Questions 1. Um, can you talk you talked a little bit about doc.

Speaker #2: you gotta solve for difficult drop-off issues like, you know, perhaps a doorman inside of a high-rise building, or, you know, a complicated gate entry in an apartment unit.

share on how you're thinking about unit economics, kind of

Like, today versus where we think it goes long term. And how do you think about that?

Speaker #2: these are all of the issues that we've encountered, and are, you know, candidly, like, maybe 1 in 1,000ths of the issues that we've encountered in building DoorDash dot in our test market.

possible to share the aov for the most recent period in the

Speaker #2: And so I think to get to the milestone that we have today with dot, where we have meaningful scale in our test market, has been a huge accomplishment by the team.

The grocery and and Retail thanks.

Tony Xu: Sure. Maybe I can start with the question. I would say a few things about DoorDash Dot delivery, at least at DoorDash, is that we want to offer AVs throughout the network so that we can deliver the best service. Full delivery from the widest selection. I would say that the real secret sauce or the magic that we've learned in building DoorDash Dot is that it's really the complexity Technology that actually allows you to. Put a different way, DoorDash Dot or any AV, for that matter, alone will not make autonomous deliveries a meaningful penetration for customers. I mean, you have to solve the loading problem for customers. I mean, at the end of the day, you have to solve very challenging operational problems in the physical world. You have to solve the loading problem at the merchant.

Sure, maybe I can start with the question.

Speaker #2: And it gives us confidence that you, you know, you can actually truly scale autonomous delivery if you both can master the operations and the technology.

you know, I I would say if you think

Door Dash.

Speaker #2: And that's why I think we're in the best position to do it, because we run the network, but and we're also building the technology ourselves, which gives us the lowest level of detailed understanding of how to actually make this happen.

Delivery. Um, at least the door dashes that we want to offer, you know, AVS throughout the network so that we can deliver the best, you know, service.

Speaker #2: and does it mean that, you know, we have to build everything? I mean, we actually you know, w whether it's by land or by air, we have a variety of partners that we interact with.

um,

Speaker #2: And, you know, for everyone, we kind of, you know, solve all of the challenging operational problems for them, and we do that through our autonomous delivery platform.

I would say that the real secret sauce, or the magic that we've learned in building door dash dot. Is that it's really the complexity.

Speaker #2: So, you know, for a merchant, you can take your existing DoorDash integration, and you get access to any and all AVs, and for customers, you're gonna actually one day get the benefit, you know, of these technologies.

Technology. That actually allows you to, you know, even

Speaker #2: and, you know, with respect to, y-y-y-you know, the cost profile, we s we're very excited by what we see. I mean, it's, it's exponential progress.

Um put a different way you know dash dot or any AB for that matter. A loan will not make autonomous deliveries.

A meaningful penetration, you know, for customers. I mean, at the end of

Speaker #2: but I think, you know, the, the first milestone for us is really been, you know, can you actually commercialize this in a way that you've seen you know, certain robotaxi providers like Waymo actually do it with rideshare?

Speaker #2: you know, we've been able to now do it with delivery.

Speaker #7: Hey, Jason. It's Ravi on the second point, right? Like, let me start with, what we're seeing in the business. Look, as we continue to operate and expand our new verticals in grocery business, what you're seeing is, as the product is getting better, the basket sizes are increasing.

Tony Xu: You have to estimate merchant prep times in the case of restaurants, or inventory levels in the case of retailers and grocery stores. You got to solve for difficult drop-off issues like, perhaps a doorman inside of a high-rise building or, a complicated gate entry in an apartment unit. These are all of the issues that we've encountered, and are, candidly, maybe 1/1000th of the issues that we've encountered in building DoorDash Dot in our test market. I think to get to the milestone that we have today with Dot, where we have meaningful scale in our test market, has been a huge accomplishment by the team, and it gives us confidence that you can actually truly scale autonomous delivery if you both can master the operations and the technology.

Speaker #7: This was what we had originally expected, which is, as we add more selection, as the quality of the product continues to get better, you would have customers use us for more use cases, which will ultimately drive the basket sizes to be higher.

You have to solve, uh, the the loading problem. And, you know, for customers. I mean, at the end of the day, you have to solve, you know, very challenging, operational problems in the physical world, you have to solve, uh, the, the loading problem you. Um, at the merchant, you have to estimate Merchant prep times. In the case of restaurants or inventory levels, in the case of retailers and grocery stores, uh, you got to solve for difficult drop off issues like, you know, perhaps a doorman inside of a high-rise building or, um, you know, a complicated gate entry, in an apartment unit.

Speaker #7: We're seeing that in older cohorts. We're seeing that in newer cohorts, which is visible, you know, overall in the business as well. But let me actually take a step back and walk you through what our thesis was and, you know, why we put the second chart in the letter.

Speaker #7: Look, our core thesis was twofold. One is we knew that as customers or consumers habituate on the platform, they will spend more with us.

Speaker #7: They'll spend more with us on the restaurants business. They'll adopt newer categories. They'll spend more with us on the new verticals business. The example that we took in that chart was, you know, one of our older cohorts, which is largely representative actually of the other cohorts that we see in the business, where consumers spend on restaurants is increasing.

Tony Xu: That's why I think we're in the best position to do it, because we run the network, and we're also building the technology ourselves, which gives us the lowest level of detailed understanding of how to actually make this happen. It doesn't mean that we have to build everything. We actually, whether it's by land or by air, we have a variety of partners that we interact with. For everyone, we solve all of the challenging operational problems for them. We do that through our autonomous delivery platform. For a merchant, you can take your existing DoorDash integration and you get access to any and all AVs. For customers, you're going to actually one day get the benefit of these technologies. With respect to the cost profile, we're very excited by what we see. It's exponential progress.

Speaker #7: Consumers spend on new verticals is increasing. And at the same time, DashPass penetration is increasing. And if you think about it, right, this is almost like a self-reinforcing loop, where the product gets better, consumers adopt and habituate to DashPass.

Um, these are all of the issues that we've encountered um and are, you know, candidly like maybe 1 1, thousandth of the issues that we've encountered in building door dash dot in our test market. And so I think to get to the Milestone that we have today with DOT where we have meaningful scale in our test Market, um, has been a huge accomplishment by the team and it gives us confidence that, you know, you can actually truly scale autonomous delivery if you both can Master the operations and the technology and that's why I think we're the best position to do it. Um because we run the network. Um but and we are also building the technology ourselves which gives us the lowest level of detail and understanding of how to actually make this happen. Um,

Speaker #7: As they adopt DashPass, they continue to use the product more, which ultimately leads to more growth as well as more profit dollars in the system.

Speaker #7: This is largely been the focus for us, and that's largely what you're seeing in the underlying cohorts. And we're very pleased with the performance of that, in the underlying business.

Speaker #1: The next question is from Shweta Khajuria, of Wolf Research. Your line is now open. Please go ahead.

Speaker #8: Thank you for taking my questions. let me try two, please. First is on the DashMart fulfillment services. Since your launch and, since working with a handful of partners, I understand, what have you learned so far that you could p-potentially quantify or some sort of tangible learnings that you could share?

Tony Xu: I think, that the first milestone for us has really been, can you actually commercialize this in a way that you've seen certain robotaxi providers like Waymo actually do it with rideshare? We've been able to now do it with delivery.

And doesn't mean that, you know, we have to build everything. I mean, we actually, um, you know, uh, whether it's by land or by are we have a variety of partners that we interact with? And, you know, for everyone, we kind of, you know, solve all of the challenging, operational problems for them. Um, and we do that through our autonomous delivery platform. So, you know, for a merchant, you can take your existing door Dash integration and you get access to any and all AVS. And for customers, you're going to actually 1 day get the benefit, you know, uh, of these Technologies. Um, and um, you know with respect to uh, you know the cost profile. We we're very excited by what we see. I mean it's it's exponential progress. Um, but I think, you know, the, the first milestone for us is really

Speaker #8: whether it is on the magnitude of customer experience improvements, or something else. And then, what metrics do you look at to be able to make that decision to scale, DashMart fulfillment services?

Ravi Inukonda: Hey, Jason, and Ravi. On the second point, let me start with what we're seeing in the business. Look, as we continue to operate and expand our new verticals in grocery business, what you're seeing is, as the product is getting better, the basket sizes are increasing. This is what we had originally expected, which is, as we add more selection, as the quality of the product continues to get better, you'd have customers use us for more use cases, which will ultimately drive the basket sizes to be higher. We're seeing that in older cohorts. We're seeing that in newer cohorts, which is visible overall in the business as well. Let me actually take a step back and walk you through what our thesis was and why we put the second chart in the letter. Look, our core thesis was twofold.

Really been, you know, can you actually commercialize this in a way that you've seen, you know, certain robots? You providers like, who actually do it with ride share? Um, you know, we've been able to now do it with delivery.

Speaker #8: And then the second question is just overall EBITDA growth, where now we are in the back half of this year, and in the light of investments, this year, but more importantly, as we think about balancing growth and, top-line growth and EBITDA growth, Ravi, how are you thinking about that?

Speaker #8: as we think about, you know, the demand trends that you see right now and balancing growth with, profitability. Thanks a lot.

Speaker #2: Yeah. I can start by answering you know, about DashMart fulfillment services. You know, to, to state the obvious, you know, we, we want every local business to be successful in their local communities.

Ravi Inukonda: One is, we knew that as customers or consumers habituate on the platform, they will spend more with us. They'll spend more with us on the restaurants business, they'll adopt newer categories, they'll spend more with us on the new verticals business. The example that we took in that chart was one of our older cohorts, which is largely representative, actually, of the other cohorts that we see in the business, where consumer spend on restaurants is increasing, consumer spend on new verticals is increasing, and at the same time, DashPass penetration is increasing. If you think about it, this is almost like a self-reinforcing loop where the product gets better, consumers adopt and habituate to DashPass. As they adopt DashPass, they continue to use the product more, which ultimately leads to more growth as well as more profit dollars in the system.

Speaker #2: And, you know, that's true in every category, you know, from restaurants to grocery to retail. And one of the things that we learned, you know, five years ago when we launched our grocery business, even though, you know, it's going so well and we're helping lots of grocers compete, is that there's this, you know, structural challenge with grocery delivery, where grocers don't know their inventory.

Hey Jason, it's Rob the second point, right? Like let me start with what we're seeing in the business look as we continue to operate and expand our new verticals and grow your business. What you're seeing is as the product is getting better, the basket sizes are increasing, this is what we are doing. Usually expected, which is as we add more selection, as the quality of the product continues to get better. You would have customers use us for more use cases, which will ultimately Drive the basket sizes to be higher. We're seeing that in older cohorts, we're seeing that in your cohorts, which is visible, you know, overall in the business as well, but let me actually take a step back and walk you through what are the thesis was? And you know why, we put the second chart in the letter. Look, our core pieces was twofold. 1 is we knew that as customers or consumers, habituate on the platform, they will spend more with us. They'll spend more with us on the restaurants business. They'll adopt your categories, they'll spend more with us on the New Vertical business. The example that we took in that chart was, you know, 1 of our older cohorts, which is largely a representative actually of the other cohorts that we see in the business.

Where consumers spend on restaurants is increasing consumers. Spend on new verticals is increasing and at the same time dashpass penetration is increasing.

Speaker #2: In some ways, it's almost impossible for a whole host of reasons, one of which is because consumers come in and they move things around.

Speaker #2: and so it's a very difficult proposition then to offer customers, a use case where you're asking them to pay a premium for delivery, but they don't get exactly what they ordered.

Ravi Inukonda: This has largely been the focus for us, and that's largely what you're seeing in the underlying cohorts, and we're very pleased with the performance of that in the underlying business.

Speaker #2: So you know, our solution to this, is DashMart fulfillment services, where we are managing you know, warehouses where we control the inventory, and sell exactly what's in stock, so that we can actually offer, you know, near-perfect accuracy and give customers the selection that they want from any place inside the city, and also very, very quickly.

And if you think about it, right? This is almost like a self-reinforcing loop where the product gets better consumers, adopt and habituate to dashpass. As they adopt, dashpass, they continue to use the product more which ultimately leads to more growth as well as more profit dollars in the system. This is largely been the focus for us and that's largely what you're seeing in the underlying cohort. And we're very pleased with the performance of that uh in the underlying business.

Operator: The next question is from Shweta Khajuria of Wolfe Research. Your line is now open. Please go ahead.

The next question is from shweta. Kajura of Wolfe research.

Shweta Khajuria: Thank you for taking my questions. Let me try two, please. First is on the DashMart Fulfillment Services. Since your launch and, since working with a handful of partners, I understand, what have you learned so far that you could potentially quantify or some sort of tangible learnings that you could share, whether it is on the magnitude of customer experience improvement, or something else? What metrics do you look at to be able to make that decision to scale DashMart Fulfillment Services?

Speaker #2: And so in terms of what we've seen so far since our announcement last fall, and the launch that we've had with several partners, is we're seeing lots of incremental demand.

Speaker #2: Because you know, these warehouses are running near 24/7. If you compare that to traditional store operating hours, that's a dramatic increase in TAM as well as, you know, really just solving the needs of customers.

Speaker #2: Because customers sometimes don't you know, get freed up until maybe after-store closing hours before they can think about, you know, the next day or planning their groceries or their shopping, needs.

Shweta Khajuria: The second question is just overall EBITDA growth, where now we are in the H2 of this year and in the light of investments this year, but more importantly, as we think about balancing growth and top-line growth and EBITDA growth, Ravi, how are you thinking about that, as we think about the demand trends that you see right now and balancing growth with profitability? Thanks a lot.

What have you learned so far that you could potentially quantify or some sort of tangible, uh, learnings that you could share, uh, whether it is on the magnitude of customer experience improvements, um, or something else and then, uh, what metrics do you look at to be able to make that decision to scale? Uh, dashmart fulfillment services. And then the second question is just overall ibida growth.

Speaker #2: So we're seeing lots of incremental demand. And we're also seeing, you know, 10 times better error rates because you know, we're we're running the inventory.

Speaker #2: And as a result, you know, we're, we're selling customers exactly the customers are getting exactly what they ordered, and we're selling them exactly what's actually in stock.

Where now we are in the back half of this year and in the light of Investments this year but more importantly as we think about balancing growth and um Topline growth and ebida growth Robbie, how are you thinking about that? Um as we think about, you know, the demand trends that you see right now and balancing growth with the profitability. Thanks a lot.

Speaker #2: And so you know, all the signs right now are really positive. you know, for us to scale DashMart fulfillment services. But look, this is complicated.

Tony Xu: I can start by answering about DashMart Fulfillment Services. To state the obvious, we want every local business to be successful in their local communities. That's true in every category, from restaurants to grocery to retail. One of the things that we learned five years ago when we launched our grocery business, even though it's going so well and we're helping lots of grocers compete, is that there's this structural challenge with grocery delivery where grocers don't know their inventory. In some ways, it's almost impossible for a whole host of reasons, one of which is because consumers come in and they move things around. It's a very difficult proposition then to offer customers a use case where you're asking them to pay a premium for delivery, but they don't get exactly what they ordered.

Yeah. Uh I can start by answering, you know, about Dash, mark, fulfillment services.

Speaker #2: I mean, this is building physical infrastructure. You're a obviously adding technology to it by managing the inventory and obviously running the entire fulfillment. So but you can imagine a world in which, you know, these warehouses can power, all of the needs inside of a city.

You know, to state the obvious, we want every

Speaker #2: And you can what you can really do when you do something like that is you can really unlock the amount of selection available to customers.

Speaker #2: Because today, I would say DoorDash is delivering probably 1/10 in most cities, you know, the available selection. in terms of, you know, retail and, and, and, and grocery and the like.

Local business to be successful in their local communities and, um, you know, that's true in every category. Uh, you know, from restaurants to grocery to retail and 1 of the things that we learned, you know, 5 years ago, when we lost our grocery business, even though, you know, it's going so well and we're helping lots of groceries compete. Is that there's this, you know, structural challenge with grocery delivery where

Speaker #2: and so if we can actually build this capability, and, you know, do it in concert with all of the great retail and grocery selection inside of a city, I think customers get the best product.

Grocers don't know, their inventory. In some ways, it's almost impossible for a whole host of reasons, 1 of, which is because consumers come in and they move things around.

Tony Xu: Our solution to this, is DashMart Fulfillment Services, where we are managing warehouses, where we control the inventory and sell exactly what's in stock, so that we can actually offer near perfect accuracy, and give customers the selection that they want from any place inside the city, and also very, very quickly. In terms of what we've seen so far since our announcement last fall, and the launch that we've had with several partners, is we're seeing lots of incremental demand. Because these warehouses are running near 24/7. If you compare that to traditional store operating hours, that's a dramatic increase in TAM, as well as really just solving the needs of customers, because customers sometimes don't get freed up until maybe after store closing hours before they can think about the next day, or planning their groceries or their shopping needs.

Speaker #2: They get all the selection that they want, at perfect quality, very quickly.

Speaker #3: I'm sure that your second question around, look I mean, trying to balance both growth as well as profitability, right? You had asked about the demand trends.

Speaker #3: Look, when I look at the underlying, business, the demand trends continue to be quite strong. I mean, as you know, we focus and spend a lot of our time on cohorts.

Speaker #3: You know, MAUs, when I look across the board, they have hit all-time highs. Subscription, I talked about the fact that both domestically and internationally, those are one of our best quarters.

Speaker #3: In the sense that subscription continues to be at record highs. Restaurant growth accelerated. Deliveroo continues to do quite well. Overall, when I look at the underlying improvements in the product, that's driving the improvements that you're seeing both from retention as well as order frequency.

Speaker #3: At the same point, I mean, look, I mean, the quarter was very strong from an underlying profitability perspective as well. A lot of that is because the underlying unit economics continue to improve.

Um, and so it's a very difficult proposition then to offer customers, uh, a use case, where you're asking them to pay a premium for delivery, but they don't get exactly what they ordered. So, you know, our solution to this uh, is Dash mark, fulfillment Services, where we are managing, you know, warehouses where we control the inventory and sell exactly what's in stock. Um, so that we can actually offer, you know, near perfect accuracy, um, and give customers the selection that they want from any place inside the city and also very very quickly. And, so, in terms of what we've seen so far, since our announcement last fall, and the launch that we've had with several Partners is we're seeing lots of incremental demand because, you know, these warehouses are running near 247. If you compare that to traditional store operating hours, that's a dramatic increase in Tam as well as you know, really just solving the needs of customers because customers sometimes, don't, you know, get freed up until maybe after store closing hours before they can think about, you know,

Tony Xu: We're seeing lots of incremental demand, and we're also seeing 10 times better error rates because we're running the inventory. As a result, customers are getting exactly what they ordered, and we're selling them exactly what's actually in stock. All the signs right now are really positive for us to scale DashMart Fulfillment Services. Look, this is complicated. This is building physical infrastructure. You're obviously adding technology to it by managing the inventory and obviously running the entire fulfillment. You can imagine a world in which these warehouses can power all of the needs inside of a city.

Tony Xu: We're seeing lots of incremental demand, and we're also seeing 10x better error rates because we're running the inventory. As a result, customers are getting exactly what they ordered, and we're selling them exactly what's actually in stock. All the signs right now are really positive for us to scale DashMart Fulfillment Services. Look, this is complicated. This is building physical infrastructure. You're obviously adding technology to it by managing the inventory and obviously running the entire fulfillment. You can imagine a world in which these warehouses can power all of the needs inside of a city.

Speaker #3: For us, the philosophy has always been the same, right? We're consistently trying to improve efficiency. There's many sources. Across the board, whether it's sales and marketing, fixed costs, you know, up and down the P&L.

Speaker #3: And our goal is to consistently reinvest back in the business. Look, we talked about the fact that we're investing, you know, back into the business and building product.

the next day or planning their groceries or their shopping. Um, needs. So we're seeing lots of incremental demand and we're also seeing, you know, 10 times better error rates because, you know, we're we're running the inventory. And as a result, you know, we're we're selling customers. Exactly. Um, the customers are getting exactly what they ordered and we're selling them exactly what's actually in stock.

Speaker #3: Some of which we've talked about earlier on the call, whether it's autonomy, unification of the global tech stack, or investing back in merchant services.

and so,

Speaker #3: All of those are going well. They're all going, you know, on budget and on plan according to what I'd estimated a couple of quarters ago.

Speaker #3: These will increase the surface area. Ultimately, the goal for us is to continue to drive both growth as well as profit dollars, as long as we make the product better, what we're seeing in the business is we're able to do both, right?

Speaker #3: This is, you know, how we think about balancing both growth as well as profit dollar production in our business.

Tony Xu: What you can really do when you do something like that, is you can really unlock the amount of selection available to customers, because today, I would say DoorDash is delivering probably one-tenth in most cities, the available selection in terms of retail and grocery and the like. If we can actually build this capability and do it in concert with all of the great retail and grocery selection inside of a city, I think customers get the best product. They get all the selection that they want at perfect quality, very quickly.

Speaker #1: The next question is from Josh Beck of Raymond James. You're lying is now open. Please go ahead.

um, you know, all the signs right now are really positive, uh, you know, for us to scale Dash from our film services. But look, this is complicated. I mean, this is building physical infrastructure. You're obviously adding technology to it by managing the inventory and obviously running the entire fulfillment. So um, but you can imagine a world in which um, you know, these warehouses can power, uh, all of the needs inside of a city and you can, what you can really do when you do something like that is, you can really unlock the amount of selection available to customers.

Speaker #4: Thanks for taking the question. I had, maybe a, a product, oriented question. So on dot getting to high single digit within a, a market by the end of the year, could you give us maybe, like, some characteristics?

Speaker #4: Is this because it's maybe more of a longer route suburb type of market? And, you know, if you were to maybe add in all of the different modalities, between maybe sidewalk, pathway, drones, you know, tallest vehicles, you know, is there some type of, you know, ceiling that you have in your mind in terms of maybe the percentage of orders that could be filled through autonomous?

Today, I would say, Dash is delivering, probably 1 tenth in most cities, you know the available selection. Um, in terms of, you know, retail and and, and, and Grocery, and the like, um, and so, we can actually build this capability and, you know, do it in concert with all of the great retail and grocery selection, inside of the city, I think customers get the best product. They get all the selections that they want at perfect quality very quickly.

Ravi Inukonda: Sure, to your second question around, look, trying to balance both growth as well as profitability, right? You had asked about the demand trends. Look, when I look at the underlying business, the demand trends continue to be quite strong. As you know, we focus and spend a lot of our time on cohorts. MAUs, when I look across the board, they're at all-time highs. Subscription, I talked about the fact that both domestically, internationally, was one of our best quarters in the sense that the subscription continues to be at record highs. Restaurant growth accelerated. Delivery continues to do quite well. Overall, when I look at the underlying improvements in the product, that's driving the improvements that you're seeing, both from retention, as well as order frequency. At the same point, look, the quarter was very strong from an underlying profitability perspective as well.

Ensure that you have a second question around. Uh, look, I mean, try to balance both growth as well as profitability, right? You're asked about the demand trends,

Speaker #4: And then just secondarily on, the AI assistant, obviously lots of, attractive characteristics, discovery, baskets, et cetera. curious, you know, if there's been other observations with respect to, you know, better frequency of these customers, curious on maybe what you have to say about ad monetization.

Look, I look at the underlying uh, business. The demand Trends continue to be quite strong. I mean, as you know, we focus and spend a lot of our time on cohorts. You know Mas when I look across the board they have it all-time highs subscription. I talked about the fact that both domestically internationally, it was a 1 of our best quarters in the sense that the subscription continues to be a record high.

Speaker #4: It seems like maybe time spent could be less, but conversion could be better. So just curious on, on those two, two topics. Thank you.

Ravi Inukonda: A lot of that is because the underlying unit economics continue to improve. For us, the philosophy has always been the same, right? We're consistently trying to improve efficiency. There's many sources across the board, whether it's sales and marketing, fixed costs, up and down the P&L. Our goal is to consistently reinvest back in the business. Look, we talked about the fact that we are investing back into the business in building product, some of which we've talked about earlier on the call, whether it's autonomy, unification of the global tech stack, or investing back in merchant services. All of those are going well. They're all going on budget and on plan according to what I'd estimated a couple of quarters ago. These will increase the surface area. Ultimately, the goal for us is to continue to drive both growth as well as profit dollars.

Speaker #2: All right. I think he had, like, maybe seven or eight questions in there, Josh, but I'll do my best. look, on DoorDash dot, i-it is a representative DoorDash market.

Restaurant, growth accelerated to the blue continues, to do quite well, overall, when I look at the underlying improvements in the product, that's driving the improvements that you're seeing both from retention, as well as Auto frequency at the same point. I mean, look, I mean, the quarter was very strong from an underlying possibility perspective as well. A lot of that is because the underlying unit economics continue to improve.

Speaker #2: You know, we're testing in Phoenix. And so and we're testing it, you know, with real scale now, which is like I said, a, a, a real accomplishment when you think about, you know, these are not demos.

Speaker #2: These are not prototypes. They're no fixed routes. this is real life. And this is real life for, you know, tens of thousands of customers.

Speaker #2: you know, that are receiving real deliveries. And, and so that's very exciting. It's also very challenging. you know, I mentioned you know, maybe five or six issues that might be literally 1 in 1,000th the number of issues that you have to solve, to actually have a chance at making autonomous deliveries actually happen.

Ravi Inukonda: As long as we make the product better, what we're seeing in the business is we're able to do both, right? This is how we think about balancing both growth as well as profit dollar production in our business.

And our goal is to consistently reinvest back in the business. Look, we talked about the fact that we're investing, you know, back into the business in Building Products, some of which we've talked about earlier on the call, whether it's autonomy unification or the Global Tech stack or investing back in merchant services, all of those are going. Well, they're all going, you know, on budget and on plan, according to what that? Estimated a couple of quarters ago, these will increase the surface area. Ultimately, the goal for us is to continue to drive both growth as well as profit dollars. As long as we make the product better, what we're seeing in the business is we're able to do both, right? This is, you know, how we think about balancing both growth as well as profit dollar production in our business.

Operator: The next question is from Josh Beck of Raymond James. Your line is now open. Please go ahead.

Speaker #2: And that's true whether you're doing it by land, and it's also true why you're whether you're doing it by air. I mean, you know, we've seen this with DoorDash Air as well.

Next question is from Josh Beck of Raymond James.

Your line is now open. Please go ahead.

Josh Beck: Thanks for taking the question. I had maybe a product-oriented question. On Dot getting to high single digits within a market by the end of the year, could you give us maybe some characteristics? Is this because it's maybe more of a longer route, suburb type of market? If you were to maybe add in all of the different modalities, between maybe sidewalk, pathway, drones, autonomous vehicles, is there some type of ceiling that you have in your mind in terms of maybe the percentage of orders that could be filled through autonomous? Then just second, just barely, on the AI assistant, obviously lots of attractive characteristics, discovery, basket, et cetera. Curious if there's been other observations with respect to better frequency of these customers. Curious on maybe what you have to say about ad monetization.

Speaker #2: In addition to, you know, all the partners that, you know, we test with and bring our, our scale, to. And so you know, what I would say is i-i-it the what's gonna determine you know, the ceiling or the penetration of autonomous delivery is whether or not you can master both the operations and the technology.

Thanks for taking the question. I had um, maybe a product, uh, oriented question. So on dot beginning to high single digits within a, a market by the end of the year, could you give us maybe like some characteristics is this because it's maybe more of a longer route.

Speaker #2: And, you know, I believe we're best positioned to do that because we're actually doing both in-house. And so we are getting to the lowest level of detail.

Speaker #2: You know, chopping down the very heavy wood of every issue that exists in the real world. that exists in every single restaurant, retailer, on the road.

Suburb-type of market. And, you know, if you were to maybe add in all of the different modalities, um, between, uh, maybe sidewalk pathway drones, you know, tons of vehicles—is there some type of, you know, ceiling that you have in your mind in terms of maybe the percentage of orders that could be, um, filled through?

Speaker #2: I mean, dot travels road, sidewalk, and bike lane. It's the only vehicle in the world to do that, autonomously. and, and there's a lot of challenges when you w-w-when you actually try to, you know, take on them multi-modality.

Speaker #2: You know, and, and, you know, one of the interesting things, perhaps the most interesting thing of what we're building with autonomy is this autonomous delivery platform.

Josh Beck: It seems like maybe time spent could be less, but conversion could be better. Just curious on those two topics. Thank you.

Speaker #2: You know, you can think of this as the brains that actually makes it all happen. You know, you that, you know, deciphers which vehicles go to which orders, that, you know, decides whether you have a m you know, a, a, a, a mixed route, you know, where you have human dashers as part of the legs of the journey, and autonomous vehicles and other parts of the journey.

Autonomous, and then, just secondarily on, um, the AI assistant. Obviously lots of, uh, attractive characteristics, Discovery. Baskets, Etc. Um, curious, you know, if there's been other observations with respect to, you know, better frequency of these customers curious. Um, maybe what you have to say about ad monetization, it seems like maybe time spent could be less, but conversion can be better. So, I'm just curious on those 2 2 topics. Thank you.

Tony Xu: All right. I think you had maybe seven or eight questions in there, Josh, but I'll do my best. Look, on DoorDash Dot, it is a representative DoorDash market. We're testing in Phoenix, and we're testing it with real scale now, which is a real accomplishment when you think about these are not demos, these are not prototypes, they're no fixed routes. This is real life, and this is real life for tens of thousands of customers that are receiving real deliveries. That's very exciting. It's also very challenging. I mentioned maybe five or six issues. That might be literally 1/1,000th the number of issues that you have to solve to actually have a chance at making autonomous deliveries actually happen. That's true whether you're doing it by land, and it's also true whether you're doing it by air.

Speaker #2: you know, that, that, that looks into the configuration of the package size and the package design and the package weight. And, you know, there's a lot of complexity, but all of that gets reduced.

Speaker #2: And kind of goes and disappears because we kind of handle it through our autonomous delivery platform so that merchants get the same integration that they have with DoorDash today.

Speaker #2: They don't have to change a single thing about their workflow. And customers just get access to the benefits of autonomous delivery, which, you know, will be in the future speed, cost, and, and, and more selection.

Speaker #2: And so I think that's gonna be, you know, really, really, really exciting. And, and again, like, you know, it's really gonna be the execution that determines you know, the ceiling.

Speaker #2: And I think we're best suited for that execution. you know, I think your second question on the AI assistant I mean, this the short answer is, of course, if you're whenever you're making whenever you're reducing friction in a product, you get more usage.

Tony Xu: We've seen this with DoorDash Air as well, in addition to all the partners that we test with and bring our scale to. What I would say is, what's going to determine the ceiling or the penetration of autonomous delivery is whether or not you can master both the operations and the technology. I believe we're best positioned to do that because we're actually doing both in-house, we are getting to the lowest level of detail, chopping down the very heavy wood of every issue that exists in the real world, that exists in every single restaurant, retailer, on the road. Dot travels road, sidewalk, and bike lane. It's the only vehicle in the world to do that autonomously. There's a lot of challenges when you actually try to take on that multimodality.

All right, I think you like, maybe 7 or 8 questions in there Josh, but I'll do my best. Um, look on door dash dot. Um, it is a representative door Dash Market, you know, we're testing in Phoenix and so, um, and we're testing it, you know, with real scale. Now, which is, um, like it's a, a real, um, accomplishment when you think about, you know, these are not demos, these are not prototypes, there are no fixed routes. Um, this is real life and this is real life for, you know, tens of thousands of customers, um, you know, that are receiving real deliveries. And and so, um, that's very exciting. It's also very challenging, um, you know, I mentioned, you know, maybe 5 or 6 issues that might be literally 1 1,000. The number of issues that you have to solve to actually have a chance at making autonomous deliveries actually happen. And that's true whether you're doing it by land and it's also true why you're whether you're doing it by are. I mean

Speaker #2: You know, so if we're making it easier to build a grocery cart, you get more grocery carts. And you get bigger grocery carts. And it doesn't change at all.

Speaker #2: The ads profile or, you know a-anything else, if anything, you actually get just more incremental orders. And more incremental opportunities because people order more often.

Speaker #2: the same thing is true about ordering, you know, restaurants. If, you know, you now discover that there's something slightly healthier or faster or cheaper or just better or different from what you typically order, then you tend to order more often.

Speaker #2: possibly for more use cases. You know, we eat 20 to 25 times a week. And, you know, DoorDash only touches a fraction of that.

Speaker #2: And that is really the, the runway we have. You know, when I think about the number of the number of meal occasions, and shopping needs on top of that, it's north of 100, you know, per month.

Tony Xu: One of the interesting things, perhaps the most interesting thing of what we're building with autonomy, is this autonomous delivery platform. You can think of this as the brains that actually makes it all happen, that deciphers which vehicles go to which orders, that decides whether you have a mixed route, where you have human Dashers as part of the legs of the journey and autonomous vehicles on other parts of the journey. That looks into the configuration of the package size and the package design and the package weight. There's a lot of complexity, but all of that gets reduced and kind of goes and disappears, because we handle it through our autonomous delivery platform, so that merchants get the same integration that they have with DoorDash today. They don't have to change a single thing about their workflow.

I know we've seen this with door Dash are as well in addition to, you know, all the partners that, you know, um, we test with and bring our our scale, uh, to. And so, you know what I would say is the what's going to determine, you know, the ceiling or the penetration of autonomous delivery is whether or not you can Master both the operations and the technology and, you know, I believe we're best positioned to do that because we're actually doing both in-house. And so we are getting to the lowest level of detail. You know, chopping down the very heavy wood of every issue that exists in the real world. Um, that exists in every single restaurant retailer on the road. I mean dot travels Road sidewalk and bike lane. It's the only vehicle in the world to do that on automatically. Um and and there's a lot of challenges when you when you actually try to you know take on that multi-modality, you know and and you know 1 of the interesting things.

um, perhaps the most interesting thing of what we're building with autonomy is this autonomous delivery platform,

Speaker #2: And so we have a lot of shots on goal, that we can go capture. And if we just reduce the friction of actually ordering, and then master and continue to master, the operations of fulfillment, you know, all of the metrics will go in the right direction.

Speaker #1: The next question is from Youssef Squali of Truist Securities. Your line is now open. Please go ahead.

you know, you can think of this as the brains that actually makes it all happen. You know, you that, you know, deciphers which vehicles go to which orders that, you know, decides, whether you have a, you know, a a a mixed route, you know, where you have human Dashers as part of the legs of the journey and autonomous vehicles and other parts of the journey. Um, uh, you know, that that that looks into the configuration of

the package size, and the package design, and the package weight, and

Speaker #3: Awesome. Thank you so much. So, guys, I just wanna double-click on the margin question again. Can you Ravi, can you maybe just talk about the drivers for the material beats and adjusted EBITDA in Q2?

Speaker #3: It came quite a bit outside of the guidance range, more, more recently, you guys have been guiding to at some point hit somewhere in the midpoint.

Tony Xu: Customers just get access to the benefits of autonomous delivery, which will be, in the future, speed, cost, and more selection. I think that's going to be really exciting. Again, it's really going to be the execution that determines the ceiling, and I think we're best suited for that execution. I think your second question on the AI assistant, the short answer is, of course, whenever you're reducing friction in a product, you get more usage. If we're making it easier to build a grocery cart, you get more grocery carts, and you get bigger grocery carts. It doesn't change at all the ads profile or anything else. If anything, you actually get just more incremental orders and more incremental opportunities because people order more often. The same thing is true about ordering restaurants.

Speaker #3: This one is dramatically higher. were there any investments that got pushed back into Q3 and then Q4? And then, are we still tracking to show higher year-on-year adjusted EBITDA margin for 2026 ex delivery?

Speaker #3: Thank you.

Speaker #4: Hey, Youssef. Yeah, let me take that, right? Like, look, at the highest level, what I would say is the core restaurants business continues to perform on all cylinders.

Speaker #4: Growth, like I said, on, Deepak's question, right? Like, growth accelerated, unit economics continue to improve. New verticals growing much faster than our restaurants business.

Speaker #4: As well as, you know, we saw on track to being gross profit positive by the end of the year. International continues to do well.

Speaker #4: We've talked about some of the strength that you're seeing in delivery as well as the beat on unit economics there. More specifically, what we saw in the quarter was the unit economic improvement came in ahead of our expectations.

Tony Xu: If you now discover that there's something slightly healthier or faster or cheaper or just better or different from what you typically order, then you tend to order more often, and possibly for more use cases. We eat 20 to 25 times a week, DoorDash only touches a fraction of that. That is really the runway we have. When I think about the number of meal occasions, and shopping needs on top of that, it's north of 100 per month. We have a lot of shots on goal that we can go capture. If we just reduce the friction of actually ordering and then master, and continue to master, the operations of fulfillment, all of the metrics will go in the right direction.

Tony Xu: If you now discover that there's something slightly healthier or faster or cheaper or just better or different from what you typically order, then you tend to order more often, and possibly for more use cases. We eat 20x-25x a week, DoorDash only touches a fraction of that. That is really the runway we have. When I think about the number of meal occasions, and shopping needs on top of that, it's north of 100 per month. We have a lot of shots on goal that we can go capture. If we just reduce the friction of actually ordering and then master, and continue to master, the operations of fulfillment, all of the metrics will go in the right direction.

Speaker #4: Specifically, in a couple of areas. Ads was one of them. Subtotal was the other one. Where in the second half of the quarter, those unit economics came in slightly ahead of what we had expected.

Speed costs, um, and and, and more selection. And so I think that's going to be, you know, really really, really exciting. And again like you know, it's really going to be the execution that determines um, you know the ceiling and I think we're best suited for that execution. Um, you know, I think your second question on the AI assistant. I mean, the the short answer is of course, if you're whenever you're making, uh, whenever you're reducing friction in a product you get more usage, you know? So if we're making it easier to build a grocery card, you get more grocery cards and you get bigger grocery cards and it doesn't change at all the ads profile or you know, anything else. If anything you actually get just more incremental orders and more incremental opportunities because people order more often. Uh, the same thing is true about ordering, you know, restaurants, if you know, you now discover that there is something slightly

Speaker #4: In addition, Ru beat our own internal volume positive. That led to some of the upside that you're seeing in the business. But look, I mean, more broadly, what I would say is our philosophy in how we operate the business, that is not changing.

Speaker #4: Look, it's a very tightly managed business. There's a lot of levers that we control up and down the P&L. What we're consistently trying to do is try to find sources of efficiency.

Speaker #4: Like I said earlier, there's many sources of efficiency that we work on. And take those and reinvest that back in the business. We're not trying to optimize the last dollar from one quarter to the next.

Healthier or faster, or cheaper or just better or different from what you typically order. Um, then you tend to order more often and possibly for more use cases, you know, we eat 20 to 25 times a week and, you know, door Dash only touches, a fraction of that. And that is really the, the runway we have. You know, when I think about the number of the number of meal occasions, um, and shopping needs on top of that. It's north of a hundred, you know, per month. And so we have a lot of shots on goal um, that we can go capture. And if we just reduce the friction of actually an ordering,

And then master and continue to master the operations of fulfillment. You know, all of the metrics will go in the right direction.

Speaker #4: Look, our focus is always been on how do you build a large durable business over time, while continuing to increase the overall profit dollar production.

Operator: The next question is from Youssef Squali of Truist Securities. Your line is now open. Please go ahead.

The next question is from Yousef squali of truist securities.

Speaker #4: To your second point, look, I mean, our focus has always been on landing inside the range. And if you're thinking about the second half from a modeling perspective, I would expect us to land inside the range of the guidance that we've given in Q3.

Youssef Squali: Awesome. Thank you so much. Guys, I just want to double-click on the margin question again. Ravi, can you maybe just talk about the drivers for the material beat and adjusted EBITDA in Q2? It came quite a bit outside of the guidance range. More recently, you guys have been guiding to, at some point, hit somewhere in the midpoint. This one is dramatically higher. Were there any investments that got pushed back into Q3 and then Q4? And then are we still tracking to show higher year-on-year adjusted EBITDA margin for 2026 ex Deliveroo? Thank you.

Your line is now open. Please go ahead.

Speaker #4: There are gonna be times, like in Q2, where the EBITDA beat comes in later in the quarter. In those times, we just don't have enough time to reinvest back in the business.

Speaker #4: Especially at the levels of efficiency that we desire. Q2 was one of those quarters where we were happy to drop it to the bottom line.

Speaker #1: The next question is from Ross Sandler of Barclays. Your line is now open. Please go ahead.

Speaker #5: thanks, guys. just a quick follow-up on, on the AV and then I had a question about the, the charts in the in the letter.

Ravi Inukonda: Hey, Youssef. Yeah, let me take that. Look, at the highest level, what I would say is the core restaurants business continues to perform on all cylinders. Growth, like I said on Deepak's question, growth accelerated. Unit economics continued to improve. New verticals growing much faster than our restaurants business, as well as we're on track to being gross profit positive by the end of the year. International continues to do well. We've talked about some of the strength that you're seeing in Deliveroo, as well as the beat on unit economics there. More specifically, what we saw in the quarter was the unit economic improvement came in ahead of our expectations, specifically in a couple of areas. Ads was one of them. Subtotal was the other one, where in the second half of the quarter, those unit economics came in slightly ahead of what we had expected.

Awesome. Thank you so much. So guys, I just want to double click on the margin question again. Can you Robbie? Can you maybe just talk about the drivers for the material beats and adjustability that in Q2? It came quite a bit outside of the guidance range? More more recently. You guys have been got into at some point, hit somewhere in the midpoint, this 1 is dramatically higher, um, were there any Investments that got pushed back into Q3 and then Q4 and then are we still tracking to show higher year on year, adjusted debit that margin for 2026 ex delivery?

Speaker #5: So, Tony, I think you have a few hundred robots in Phoenix. H-how quickly is the plan to kind of bring this to other cities?

Speaker #5: That's the first question. And then, on those charts, we love the DoorDash charts. But I'm guessing if Uber were to put together their sub-penetration relative to gross profit, it would probably look kind of the same for their leading markets.

Thank you. Hey, you yourself? Yeah, let me take that right. Like look at the highest level. What I would say is the core restaurants business continues to perform on all cylinders growth. Like I said on the 55th question, right? Like growth accelerated, your economics continue to improve new verticals growing much faster than our restaurants business as well as you know, with contract to be in gross profit positive by the end of the year. International produce do well. We've talked about some of the strengths that you're seeing in deliveroo as well as the beat on unit economics there.

Speaker #5: So are there examples of, like, cities or, or, or, or countries that you are, are kind of demonstrating the same trend as the US, but you've either come from behind or you've kind of come, like, head-to-head and, and overtaken one of your competitors on, on, you know, DashPass or Vault penetration for subscribers?

Ravi Inukonda: In addition, Roo beat our own internal volume expectations. Roo is contribution profit positive. That led to some of the upside that you're seeing in the business. Look, more broadly, what I would say is our philosophy in how we operate the business, that is not changing. Look, it's a very tightly managed business. There's a lot of levers that we control up and down the P&L. What we're consistently trying to do is try to find sources of efficiency. Like I said earlier, there's many sources of efficiency that we work on, and take those and reinvest that back in the business. We're not trying to optimize the last dollar from one quarter to the next. Look, our focus has always been on how do you build a large, durable business over time while continuing to increase the overall profit dollar production.

Speaker #5: Thanks a lot.

More specifically, what we saw in the quarter was that the unit economic improvement came in ahead of our expectations, specifically in a couple of areas. 'As Was' was one of them; 'Sub Total' was the other one, where in the second half of the quarter, those unit economics came in slightly ahead of what we had expected. In addition, RUB beat our own internal volume expectations. RUB was contribution profit positive, and that led to some of the upside that you're seeing in the business.

Speaker #2: Sure. I can start on the AV question. yeah, I mean, we're very excited about what's happening in Phoenix. but like, as I mentioned, I mean, there's a lot we gotta go figure out.

But look, I mean, more broadly, what I would say is our philosophy in how we operate the business—that is not changing.

Speaker #2: And, you know, I, I'm a big believer that you really have to nail something before you, you, you, you scale it, especially in the area of autonomy, where, you know, you're really solving, like, you know, the problems of, like, six separate individual companies almost.

Look, it's a very tightly managed business. There are a lot of levels that we control up and down the panel, but what you're consistently trying to do is find sources of efficiency. Like I said earlier, there are many sources of efficiency that we work on.

Speaker #2: And you kind of have to be great at all of them. You and it's this tightly orchestration again between the operations and the technology.

Speaker #2: It, it can't, you know, stress that enough because that is the name of the game. I, I, I, I think just doing one or the other is not gonna get it done.

Ravi Inukonda: To your second point, look, our focus has always been on landing inside the range. If you're thinking about the H2 from a modeling perspective, I would expect us to land inside the range of the guidance that we've given in Q3. There are going to be times, like in Q2, where the EBITDA beat comes in later in the quarter. In those times, we just don't have enough time to reinvest back in the business, especially at the levels of efficiency that we desire. Q2 was one of those quarters where we were happy to drop it to the bottom line.

And take those and reinvest that back in the business. We're not trying to optimize the last dollar from one quarter to the next. Look, our focus has always been on how do you build a large, durable business over time while continuing to increase the overall profit dollar production?

Speaker #2: And so there's a lot of work to be done. we are in the you know, in parallel, of course, securing permits because, you know, we work with cities to actually unlock a lot of this.

Speaker #2: And, you know, w we, we, we do have you know, plans to expand. we'll share, you know, certainly more at, at, at time comes.

Your second Point look, I mean our Focus has always been on Landing inside the range and if you're thinking about the second half from a modeling perspective, I would expect us to land inside the range of the guidance that we've given in Q3. There are going to be times like, in Q2 where the ebw comes in later in the quarter in those times we just don't have enough time to reinvest back in the business especially at the levels of efficiency that we desire. Q2 was 1 of those quarters where we were happy to drop it to the bottom line.

Operator: The next question is from Ross Sandler of Barclays. Your line is now open. Please go ahead.

Speaker #2: But we thought that'd be helpful to offer just, you know, one milestone that we've you know, accomplished and, and, and are excited about. But look, the, the road ahead for, for AV is, i-is is, is, is very exciting.

The next question is from Ross. Sandler of Barclays.

Your line is now open.

Please go ahead.

Ross Sandler: Thanks, guys. Just a quick follow-up on the AV. Then I had a question about the charts in the letter. Tony, I think you have a few hundred robots in Phoenix. How quickly is the plan to bring this to other cities? That's the first question. Then, on those charts, we love the DoorDash charts, but I'm guessing if Uber were to put together their sub-penetration relative to gross profit, it would probably look the same for their leading markets. Are there examples of cities or countries that you are demonstrating the same trend as the US, but you've either come from behind or you've come head to head and overtaken one of your competitors on DashPass or Wolt penetration for subscribers? Thanks a lot.

Speaker #2: But it's gonna take time. And and it's in, in, in mostly, it's gonna take great execution between the operations and the technology. And that's what we're most excited about.

All right, thanks, guys. Um, just a quick follow-up on on the AV. And then I had a question about the the charts in the, in the letter

Speaker #3: It was on your second point, right?

Speaker #4: Like, let me take a step back and talk about, you know, subscription more broadly. I mean, if you think about subscription, it's been a key area of focus for us for the past couple of years.

The first question. And then, um,

Speaker #4: subscription continues to do well. Whether it's subscribers in the US or international, the growth rate are some of the highest that we've seen in the last couple of years.

On those charts, we love the door Dash charts, but I'm guessing if Uber were to put together their sub penetration relative to gross profit.

Speaker #4: And the whole thesis for us was, as DashPass penetration continues to increase, overall gross profit per mile continues to increase. And I look at the penetration levels.

It would probably look kind of the same for their leading markets. So are there examples of like cities or or or or countries that

Speaker #4: We're still very, very early. We're seeing similar behavior in the international markets compared to what we see in the US. Albeit some of the international countries are slightly behind 'cause we launched subscriptions slightly later than what we did in the US.

Speaker #4: And for specific examples, right, I mean, I talked about some of the examples on delivery. Look, if you're thinking about the UK market, we are gaining share.

You are, are kind of demonstrating the same Trend as the us, but you've either come from behind or you've kind of come like, head to head and, and overtaking, um, 1 of your competitors on, on, you know, dashpass or volt penetration for a subscribers.

Thanks a lot.

Speaker #4: We're one of the fastest growing in that market. We're accelerating growth. We're accelerating, you know, paid subscriber growth, volume growth compared to what we've seen in the last, like, couple of years.

Tony Xu: Sure. I can start on the AV question. Yeah, we're very excited about what's happening in Phoenix. Like as I mentioned, there's a lot we got to go figure out. I'm a big believer that you really have to nail something before you scale it, especially in the area of autonomy, where you're really solving the problems of six separate individual companies almost. You have to be great at all of them. It's this tight orchestration, again, between the operations and the technology. I can't stress that enough because that is the name of the game. I think just doing one or the other is not going to get it done. There's a lot of work to be done. We are in parallel, of course, securing permits, because we work with cities to actually unlock a lot of this.

Speaker #4: Even outside of delivery, when you look at some of the countries that we operate in both, in majority of the countries that we operate, we're continuing to gain share.

Speaker #4: And the key thing for us is we're not just looking at share go-gains. We're looking at what the order rate improvements are. We look at the either the three-month or the six-month.

Sure, I can start on the Navy question. Um, yeah. I mean, we're very excited about what's happening in Phoenix. Um, but like, as I mentioned, I mean, there's a lot, we got to go figure out and, you know, I'm a big believer that you really have to nail something before you. You, you, you, you scale it especially in the area of autonomy, where, you know, you're really solving like

Speaker #4: We have continued to improve order rates. At the same point, across both delivery as well as both, it's growth, where when look at the unit economics, either on a year-over-year basis or over the last couple of years, we've done a pretty good job of improving that.

Speaker #4: Net, net, I mean, look, you know, we've talked about some of the countries before, right, whether it's UK, you know, Israel or some of the other markets.

Speaker #4: We're continuing to do really well in terms of overall share gain as well as the underlying improvements in core metrics.

You know, the problems of like 6, separate individual companies, almost, and you kind of, have to be great at all of them. You and it's this tightly orchestration again between the operations and the technology. It, it can't, you know, stress that enough because that is the name of the game. I I I think just doing 1 or the other um is not going to get it done. And so um, there's a lot of work to be done. Um, we are in the

Speaker #1: The next question is from the line of Brian Nowak with Morgan Stanley. Your line is now open. Please go ahead.

Tony Xu: We do have plans to expand. We'll share certainly more as time comes, but we thought that it'd be helpful to offer just one milestone that we've accomplished and are excited about. Look, the road ahead for AV is very exciting, but it's going to take time and mostly it's going to take great execution between the operations and the technology, and that's what we're most excited about.

You know, in parallel, of course, securing permits. Um, because, you know, uh, we work with cities to actually unlock a lot of this and, you know, we we, we do have

Speaker #6: Hey, guys. Hey, guys. Excuse me. Thanks for taking my question. I wanna ask one about the, the, the global tech stack and sort of the unification of the global tech stack.

Speaker #6: So now that you've got the, the tech stack sort of built, as of the, the spring and even testing a lot of modules and, and new capabilities, can you give us some examples where you're, you're seeing early signal with actual quantifiable benefits of the new modules that give you confidence you're gonna get real return in ROIC on these investments as we go into 2027?

You know, plans to expand, um, we'll share, you know, certainly more at, as, as time comes but we thought that it'd be helpful to offer, just, you know, 1 Milestone that we've, um, you know, accomplished and and, and are excited about. But, look, the the road ahead for for abs is is, um, is is, is is very exciting, but it's going to take time and, um, and it's and and mostly it's going to take great execution between the operations and the technology, and that's what we're most excited about.

Ravi Inukonda: Hey, Ross, on your second point, let me take a step back and talk about subscription more broadly. If you think about subscription, it's been a key area of focus for us for the past couple of years. Subscription continues to do well. Whether it's subscribers in the US or international, the growth rate are some of the highest that we've seen in the last couple of years. The whole thesis for us was, as DashPass penetration continues to increase, overall gross profit per mile continues to increase. When I look at the penetration levels, we're still very early. We're seeing similar behavior in the international markets compared to what we see in the US, albeit some of the international countries are slightly behind because we launched subscription slightly later than what we did in the US.

Speaker #2: Sure. Yeah. Hey, Brian. y-yeah. I mean, I, I would say we're still building. I mean, the way you build these single tech stacks, i-it's not like, I mean, the, the better analogy is not like y-y-you know, it's not like a Lego project where there's like a finishing step, you know, in the instruction manual.

It was on your second point, right? Let me take a step back and talk about subscription more broadly. I mean, if you think about subscription, it's been a key area of focus for us for the past couple of years. Subscription continues to do well for us. Subscribers in the US and internationally have growth rates that are some of the highest that we've seen in the last couple of years.

Speaker #2: It's more like you're constantly well, first, you have to, like, replace an engine while you're flying a plane that's, you know, growing in speed and climbing in an altitude.

Speaker #2: And then you're constantly making tweaks. That's probably the more appropriate, analogy. but we're doing it. And, you know, where are we seeing benefits? I mean, I mean, a, a, a lot of places already.

Ravi Inukonda: For specific examples, I talked about some of the examples on Deliveroo. Look, if you're thinking about the UK market, we are gaining share. We're one of the fastest growing in that market. We are accelerating growth, we are accelerating paid subscriber growth, volume growth compared to what we've seen in the last couple of years. Even outside of Deliveroo, when you look at some of the countries that we operate in Wolt, in majority of the countries that we operate, we are continuing to gain share. The key thing for us is we are not just looking at share gains, we're looking at what the order rate improvements are. We look at either the three months or the six months, we have continued to improve order rates.

And the whole thesis for us was: as DashPass penetration continues to increase, overall gross profit per mile continues to increase. And I look at the penetration levels—we're still very, very early. We're seeing similar behavior in the international markets compared to what we see in the US, albeit some of the international countries are slightly behind because we launched subscriptions slightly later than what we did in the US.

Speaker #2: I mean, you're seeing, you know, conversion wins from improvements in search. You're seeing wins in automation. i-i-in terms of our customer support flows and, you know, by bringing things, you know, from one place that was more automated to a, another place that, that was less automated.

Speaker #2: I mean, th-th-the, the theme really is what we're trying to do, and why, you know, there's a thesis for a return here is because you're taking the best of breed feature and literally, you know, offering it to all of our 41 markets.

Ravi Inukonda: At the same point across both Deliveroo as well as Wolt, it's been a way for us to drive efficient growth, where when you look at the unit economics, either on a year-over-year basis or over the last couple of years, we've done a pretty good job of improving that. Net-net, look, we've talked about some of the countries before, whether it's UK, Israel or some of the other markets. We're continuing to do really well in terms of overall share gain as well as the underlying improvements in core metrics.

Speaker #2: And so this is not like taking one stack and then just, like, copying and pasting everything into you know, you know, the all of the brands.

Speaker #2: It's actually literally taking the best of each and then putting it into a completely new engine. and then running it I mean, it's like building a new company.

And for specific examples, right? I mean, I talked about some of the examples under the group look. If you’re thinking about the UK market, we are gaining share; we are one of the fastest-growing in that market. We are accelerating growth. We are accelerating, you know, paid subscriber growth—volume growth—compared to what we've seen in the last, like, couple of years. Even outside of the UK, when you look at some of the countries that we operate in—both in the majority of the countries that we operate—we are continuing to gain share. And the key thing for us is, we are not just looking at share gains. We're looking at, you know, the order rate improvements. If you look at either the 3 months or the 6 months, we have continued to improve order rates at the same point across both Deliveroo as well as DoorDash. It's been a way for us to drive efficient growth where, and if you look at the unit economics, either on a year-over-year basis or over the last couple years, we've done a pretty good job of improving that. Net-net, I mean, look, you know, we've talked about some of the countries before, right? Whether it's the UK, Israel, or some of the other markets, we continue to do really well in terms of overall share gains, as well as the underlying improvements in the core metrics.

Speaker #2: And so and that, that, that's why there it's really hard. and, you know, candidly, it's not something that you would do if you did not believe more in the future than you did in the past.

Operator: The next question is from the line of Brian Nowak with Morgan Stanley. Your line is now open. Please go ahead.

Brian Nowak: Hey, guys. Excuse me. Thanks for taking my question. I want to ask more about the global tech stack and sort of the unification of the global tech stack. Now that you've got the tech stack sort of built as of the spring, I know you've been testing a lot of modules and new capabilities. Can you give us some examples where you're seeing early signal with actual quantifiable benefits of the new modules that give you confidence you're going to get real return and ROIC on these investments as we go into 2027?

The next question is from the line of Brian. Novak with Morgan Stanley. Your line is now open. Please go ahead.

Speaker #2: and, you know, a-and that doesn't even take into account the velocity benefits w you know, after you complete the project where if you were to ship, once from an infrastructure perspective, that it actually gets shipped everywhere.

Hey guys. Hey guys. Excuse me, thanks for taking my question. I want to ask 1 about the uh the the Global Tech stack and sort of the unification of the Global Tech stack. So now that you've got the the tech stack sort of built as of the spring and they've been testing a lot of modules and and new capabilities.

Speaker #1: The next question comes to the line of Ronald Josey of Citigroup. Your line is now open. Please go ahead.

Speaker #5: All right. Thanks for taking the questions. I wanted to go back to the, the gross profit in DashPass, chart that we had in the in the in the letter here.

Can you give us some examples where you're you're seeing early signal with actual quantifiable benefits of the new modules that give you confidence. You're going to get real return in roic on these Investments as we go into 2027.

Tony Xu: Sure. Yeah. Hey, Brian. Yeah, I would say we're still building. The way you build these single tech stacks, the better analogy is it's not like a Lego project where there's a finishing step in the instruction manual. It's more like you're constantly Well, first you have to replace an engine while you're flying a plane that's growing in speed and climbing in altitude, and then you're constantly making tweaks. That's probably the more appropriate analogy. We're doing it, and where are we seeing benefits? A lot of places already. You're seeing conversion wins from improvements in search. You're seeing wins in automation, in terms of our customer support flows and by bringing things from one place that was more automated to another place that was less automated.

Speaker #5: And so let's flip the lines more recently or sleeping steepening for both, which is talking all the trends that we saw. So I'd love to hear more maybe To-Tony on just the plans or strategies to continue adding value to the program and the push and pull, what that value does to overall, gross profit.

Speaker #5: And then more recently, I think, the company launched, n-newer or greater fees for larger delivery radiuses to talk to us about the reasoning for those fees and, and, and, and the benefits.

Speaker #5: Thank you.

Speaker #4: Yeah. Hey, Ron, let me, take a stab at, both of those, right? Like, look, subscription continues to do well. our thesis has always been as consumers habituate and be graduate them to DashPass.

Speaker #4: Their overall value, proposition from not just a gross profit but order frequency as well as retention goes up. And the example that we put in the chart was, you know, largely, Jan 2021 cohort.

Speaker #4: And we wanted to use that 'cause it was sufficiently old enough where you could actually see the trends. Also, it's largely representative of what we see in the other cohorts, you know, the rest of the, you know, portfolio as well.

Tony Xu: The theme really is what we're trying to do, and why there's a thesis for a return here is because you're taking the best of breed feature and literally offering it to all of our 41 markets. This is not like taking one stack and then just copying and pasting everything into all of the brands. It's actually literally taking the best of each and then putting it into a completely new engine, and then running it. It's like building a new company. That's why it's really hard. Candidly, it's not something that you would do if you did not believe more in the future than you did in the past. That doesn't even take into account the velocity benefits, after you complete the project, where if you were to ship once from an infrastructure perspective, that it actually gets shipped everywhere.

Speaker #4: Where what we see is as consumers order more with us, as they retain more, they graduate to DashPass. And as they graduate to DashPass, they continue to spend more with us.

You know, growing in speed and climbing in an altitude and then you're constantly making tweaks, that's probably the more appropriate, um, analogy. Um, but we're doing it and, um, you know, where are we seeing benefits? I mean, I mean, a lot of places already. I mean you're seeing, you know, conversion winds from improvements in search, you're seeing um uh, wins and automation uh uh, in terms of our customer support flows and you know, by bringing things, um, you know, from 1 place that was more automated to another place. That that was less automated, I mean, but the, the the theme really is what we're trying to do. Um, and why, you know, there's a thesis for a return here is because you're taking the best of breed.

Speaker #4: And we're seeing that not just in the older cohorts but in some of the newer cohorts as well. Which is ultimately leading to some of the growth that you're seeing in DashPass, right?

Speaker #4: I talked about the fact that in, US, in DashPass, Q2, the growth rate in terms of paid subscribers was one of the highest that we've seen probably in the last, you know, two years.

Speaker #4: We added more number of paid subscribers in the last year, compared to the two prior years. A lot of that is because the underlying product continues to get better, right?

Feature and literally, you know, offering into all of our 41 markets. And so this is not like taking 1 stack and then just like copying and pasting everything into, you know. Um, you know, the all of the brands, it's actually literally taking the best of each and then putting it into a completely new engine. Um, and then running, I mean, it's like building a new company.

Speaker #4: Now, if you're on DashPass, you get to access retail, grocery, other categories which ultimately drives more value to DashPass subscribers. The way we increase the value proposition of DashPass to your question is making the underlying product better, right?

And so, um, and that, that's why there it's really hard. Um, and, you know, candidly it's not something that you would do, if you do not believe more in the future than you did in the past.

Speaker #4: Whether it's more selection, making the quality of the product better, continuing to drive affordability, and when we do that, we see clear improvements in both adoption of DashPass as well as the engagement from a DashPass perspective.

Um, and uh, you know, and that doesn't even take into account the velocity benefits. Uh, you know, after you complete the project, where if you were to ship, um, once from an infrastructure perspective, that it actually gets shipped everywhere.

Operator: The next question comes to the line of Ronald Josey of Citigroup. Your line is now open. Please go ahead.

Speaker #4: And your second point, look, I mean, if you're thinking about the, new fee service that we talked about, you know, the last couple of weeks ago, look, it's largely a realignment of consumers, what they pay compared to the time and effort that Dashers put in a delivery.

The next question comes from the line of Ronald Josie of Citi Group.

Ron Josey: Great. Thanks for taking the questions. I wanted to go back to the gross profit and DashPass chart that we had in the letter here. The slope of the lines more recently are steepening for both, which is talking all the trends that we saw. I'd love to hear more, maybe, Tony, on just the plans or strategies to continue adding value to the program and the push and pull, what that value does to overall gross profit. Then more recently, I think, the company launched newer or greater fees for larger delivery radiuses. Just talk to us about the reasoning for those fees and the benefits. Thank you.

Ronald Josey: Great. Thanks for taking the questions. I wanted to go back to the gross profit and DashPass chart that we had in the letter here. The slope of the lines more recently are steepening for both, which is talking all the trends that we saw. I'd love to hear more, maybe, Tony, on just the plans or strategies to continue adding value to the program and the push and pull, what that value does to overall gross profit. Then more recently, I think, the company launched newer or greater fees for larger delivery radiuses. Just talk to us about the reasoning for those fees and the benefits. Thank you.

Your line is now open. Please go ahead.

Speaker #4: If you're thinking about it from, like, an impact to the P&L perspective, I wouldn't think of it that way based on what we've seen in the markets so far.

Speaker #4: The fee is largely similar or slightly less, actually, for the vast majority of the orders. So I wouldn't expect it to be a massive impact, especially in the markets that we've launched it so far.

Speaker #1: The next question is from the line of Justin Post of Bank of America.

Speaker #6: Thanks for taking my question. I'm just wondering if you can give us, any agentic traffic update if, if you're seeing any traffic from there.

Speaker #6: And then given your, your huge merchant scale, are there ways where you could really capitalize on that, traffic as, as they roll out booking capabilities and, and, maybe even lower your marketing costs?

Great. Thanks for taking the questions. I wanted to go back to the, um, the gross profit in dashpass chart that we have in the, in the, in the letter here. And so, the slope of the lines, more recently, or sweeping steepening, for both, which is talking to all the trends that we saw. So would love to hear more maybe to Tony on, just the plans or strategies to continue adding value to the program and the push and pull what that value does to overall, uh, gross profit. And then more recently, I think uh, the company launched a newer or greater fees for larger delivery radiuses to talk to us about the reasoning for those fees and and um and and the benefits. Thank you.

Ravi Inukonda: Yeah. Hey, Ron. Let me take a stab at both of those, right? Look, subscription continues to do well. Our thesis has always been, as consumers habituate and we graduate them to DashPass, their overall value propositions of not just a gross profit, but order frequency as well as retention goes up. The example that we put in the chart was largely a January 2021 cohort, and we wanted to use that because it was sufficiently old enough where you could actually see the trends. It's largely representative of what we see in the other cohorts, in the rest of the portfolio as well. Where what we see is, as consumers order more with us, as they retain more, they graduate to DashPass, and as they graduate to DashPass, they continue to spend more with us.

Speaker #6: Thank you.

Speaker #4: Yeah. Hey, Justin. I-I'll take that one and, you know, feel free to add Ravi. I mean, what I'd say i-i-in short is, no, the volume's quite low.

Yeah. Hey uh Ron uh let me uh take a sip of both of those, right? Like look, subscription continues do well. Um, this is always been as consumers habituate and we graduate them to dash pad their overall value proposition from not just a gross profit, but order frequency as well as retention goes up.

Speaker #4: you know, I think from, you know, some of the, a-agentic partners that we've been testing with. But it also isn't that surprising. I think, for a couple reasons.

Speaker #4: You know, I-I think first, I-I, you know, I think especially for some of the larger platforms out there, you know, their core focus has been on the enterprise and, and much less, especially on coding agents and, you know, probably less, on the agentic side.

Ravi Inukonda: We've seen that not just in the older cohorts, but in some of the newer cohorts as well, which is ultimately leading to some of the growth that you're seeing in DashPass, right? I talked about the fact that in US, in DashPass Q2, the growth rate in terms of paid subscribers was one of the highest that we've seen probably in the last two years. We added more number of paid subscribers in the last year compared to the two prior years. A lot of that is because the underlying product continues to get better, right? Now, if you're on DashPass, you get to access retail, grocery, other categories, which ultimately drives more value to DashPass subscribers. The way we increase the value proposition of DashPass, to your question, is making the underlying product better, right?

Speaker #4: But, you know, the second thing is just structurally speaking, you know, if you look at it from a consumer's perspective, consumers don't really care what you call this thing, whether you call it agentic flows and pre-agentic flows, post-agentic flows.

Speaker #4: They honestly just care about getting their burrito or their pair of Nikes or their, you know, stock of weekly groceries. That's what they care about.

And the example that we put in the chart was, you know, largely uh, Jan 2021 cohort and we wanted to use that because it was sufficiently old enough where you could actually see the trends. Also it's largely representative of what we see in the other chords in the rest of the, you know, portfolio as well. Where what we see is, as consumers order more with us as they retain more, they graduate to dashpass and as they graduate to dashpass, they continue to spend more with us. And we think that not just in the order of course, but in some of the newer chords as well, which is ultimately leading to some of the growth that you're seeing in dashpass, right. I talked about the fact that in Us in dashpass Q2 the growth rate in terms of paid subscribers was 1 of the highest that we've seen probably in the last you know, 2 years.

Speaker #4: And, you know, at the end of the day, what that means is they care about the end-to-end experience, right? And so if you think about it, we're effectively the only place that can offer that, whether that's, you know, starts by knowing where all the inventory sits what's in stock, what's not in stock.

Ravi Inukonda: There is more selection, making the quality of the product better, continuing to drive affordability. When we do that, we see clear improvements in both adoption of DashPass, as well as the engagement from a DashPass perspective. To your second point, look, if you're thinking about the new fee service that we talked about last couple of weeks ago, look, it's largely a realignment of consumers, what they pay compared to the time and effort that Dashers put in a delivery. If you're thinking about it from an impact to the P&L perspective, I wouldn't think of it that way. Based on what we've seen in the market so far, the fee is largely similar or slightly less, actually, for the vast majority of the orders. I wouldn't expect it to be a massive impact, especially in the markets that we've launched it so far.

Speaker #4: Obviously, managing the logistics, at both the merchant as well as at drop-off. And then, of course, solving exception handling when things were to go awry if there's the wrong item or the wrong promotion applied to an item.

We added more paid subscribers in the last year compared to the prior year because the underlying product continues to get better right now. If you're on DashPass, you get access to retail, grocery, and other categories, which ultimately drives more value to DashPass subscribers. The way we increase the value proposition of DashPass, to your question, is by making the underlying product better—with more selections and improving the quality of the product. We continue to drive affordability, and when we do that, we see clear improvements in both adoption of DashPass.

As well as the engagement from a dash pass perspective.

Speaker #4: I think these are all the details. You kinda have to get right if you wanna do agentic commerce, you know, for our category. And that's just not something that, you know, I think a lot of people are doing.

Speaker #4: But w but we're kinda filling the void, right? It's why DoorDash launched DoorDash Ask. where we effectively are solving that. but we're, we're still, you know, very open, very excited to test, you know, all sources of incremental traffic, which is what we believe you know, can happen.

Speaker #4: You know, it's something I said probably five years ago. is that in the business world, and this is 2021, you know, I was forecasting that there'd be two big wars that would occur.

And your second Point look. I mean if you're thinking about the, um, New fee service that we talked about, you know, the last couple of weeks ago, look, it's largely a realignment of consumers, what they pay compared to the time and effort that Dash has put in a delivery. If you're thinking about it from like an impact to the p&l perspective, I wouldn't think of it that way, based on what we've seen in the market so far. The fee is largely similar or slightly less actually for the vast majority of the orders. So I would expect it to be a massive impact by the markets that we launched it so far.

Operator: The next question is from the line of Justin Post of Bank of America. Your line is now open. Please go ahead.

The next question is from the line of Justin Post of Bank of America.

Justin Post: Great. Thanks for my question. Just wondering if you can give us any agentic traffic update, if you're seeing any traffic from there. Given your huge merchant scale, are there ways where you could really capitalize on that traffic as they roll out booking capabilities and maybe even lower your marketing costs? Thank you.

Speaker #4: One is kind of the battle for attention and, and you s you see that playing out with, you know, chat the chat assistants and, and other types of, more powerful assistants now.

Your line is now open. Please go ahead.

Speaker #4: And then the other is kind of, you know, the battle for Adams. And I do think that the two services will come and partner with one another.

Speaker #4: and our focus is squarely on, you know, making sure that we master the physical world so we can be the most useful. To all these digital assistants, you know, when they kind of, you know, come around to focus on agentic commerce that, you know, will be, you know, willing partners and grow together.

Booking capabilities and and maybe even lower your marketing costs. Thank you.

Tony Xu: Yeah. Hey, Justin. I'll take that one, and feel free to add, Ravi. Let's say, in short, is no. The volume's quite low, I think from some of the agentic partners that we've been testing with. It also isn't that surprising, I think, for a couple reasons. I think first, I think especially for some of the larger platforms out there, their core focus has been on the enterprise and much less, especially on coding agents and probably less on the agentic side. The second thing is just structurally speaking, if you look at it from a consumer's perspective, consumers don't really care what you call this thing, whether you call it agentic flows and pre-agentic flows, post-agentic flows. They honestly just care about getting their burrito or their pair of Nikes or their stock of weekly groceries. That's what they care about.

Speaker #1: The next question is from the line of Doug Anmus of JP Morgan. Your line is now open. Please go ahead.

Yeah. Hey Justin, I'll take that 1 and you know, feel free to add Robbie. I mean what I say in short is know, the volume is quite low. Um, you know, I think from, you know, some of the uh agentic partners that we've been testing with.

But it also isn't that surprising? I think, uh, for a couple reasons, you know, I think first, um,

Speaker #5: Great. Thanks for taking the question. I know you don't manage for take rate, but just wanted to get a little bit more color just on net revenue margin and the, pickup that you saw kind of in Q2.

Speaker #5: just trying to understand some of the drivers there in terms of how much might have been delivery, contribution versus advertising, and, and fee changes, and how you think about that going forward.

Speaker #5: Thanks.

Speaker #4: Hey, Doug. let me take that one. Look, I mean, you're right. I mean, we're not operating the business towards, take rate or net revenue margin percentage.

Tony Xu: At the end of the day, what that means is they care about the end-to-end experience, right? If you think about it, we're effectively the only place that can offer that, whether that starts by knowing where all the inventory sits, what's in stock, what's not in stock, obviously managing the logistics at both the merchant as well as at drop-off, and then, of course, solving exception handling when things were to go awry, if there's the wrong item or the wrong promotion applied to an item. I think these are all the details you kind of have to get right if you want to do agentic commerce for our category. That's just not something that I think a lot of people are doing, but we're kind of filling the void, right? It's why DoorDash launched DoorDash Ask, where we effectively are solving that.

Speaker #4: Our goal is when always to optimize for overall profit dollars. And as you can see, pretty strong quarter from that perspective as well as the Q3 guide.

I I, you know, I think it's for some of the larger platforms out there. You know, their core Focus has been on the Enterprise and, and much less uh, especially in coding agents and, you know, probably less, um, on the agentic side. But, you know, the second thing is just structurally. Speaking, you know, if you look at it from a consumer's perspective consumers, don't really care what you call this thing whether you call it agentic flows and free, agentic flows post aent flows. They honestly just care about getting their burrito or their pair of Nikes or their you know, stock of weekly groceries. That's what they care about.

Speaker #4: Look, lots of moving parts within the take rate. The Q1, Q increase, which is what I think you're referring to, is largely from Dasher.

Speaker #4: Look, Dasher costs are seasonal for us. when you go from Q1 to Q2, Dasher costs are lower in Q2. That's what gave rise to sort of the tick up in take rate that you saw from Q1 to Q2.

Speaker #4: And if you're thinking about, from a modeling perspective, what I would expect, you know, for the rest of the year, I would expect take rate to slightly be in the similar range in Q3.

And, you know, at the end of the day, what that means is they care about the end-to-end experience, right? And so if you think about it, we're effectively the only place that can offer that whether that's, you know, starts by knowing where all the inventory sits, um, what's in stock? What's not in stock, obviously managing the logistics at both the merchants, as well as a drop off. And then, of course, solving exception handling, when things were to go, Ary if

Speaker #4: So flattish from Q2 to Q3 and lower in Q4. Again, as a reminder, I mentioned this before, Q4, Dasher costs are higher for us.

There's the wrong item, or the wrong promotion applied to an item. I think these are all the details you kind of have to get right if you want to do a Genta Commerce, you know, for our category. And that's just not something that—

Speaker #4: That'll impact take rate. So you should expect Q4 take rate to be slightly lower than what Q3 is. But net, net, look, I mean, the goal for us is not to manage to a specific line in the P&L, especially the take rate, percentage.

You know, I think a lot of people are doing but but we're kind of filling the void, right? It's why door Dash launch door Dash ask

Tony Xu: We're still very open, very excited to test all sources of incremental traffic, which is what we believe can happen. It's something I said probably five years ago, is that in the business world, this is 2021, I was forecasting that there'd be two big wars that would occur. One is the battle for attention, and you see that playing out with chat assistants and other types of more powerful assistants now. The other is the battle for atoms. I do think that the two services will come and partner with one another. Our focus is squarely on making sure that we master the physical world so we can be the most useful to all these digital assistants when they come around to focus on agentic commerce that we'll be willing partners and grow together.

Speaker #4: Our goal is to invest flexibly up and down the P&L.

Speaker #1: The next question is from the line of Tom Champion of Piper Sandler. Your line is now open. Please go ahead.

Um, where we effectively are solving that. Um, but we're, we're still, you know, very open, very excited to test, you know, all sources of incremental traffic, which is what we believe, um, you know, can happen, you know? If something I said probably

Speaker #6: Good afternoon. Thanks for taking the question. Ravi, I'd just be curious, about your big picture view on AI spending. And the ROI that you're seeing, and I'm curious if it's impacted your future hiring plans at all.

Speaker #6: Thank you.

Speaker #4: Sure. I mean, I think, let me start. Look, look, I mean, not just purely about driving cost efficiency for us, right? Like we said earlier on the call, look, we are encouraging our teams to use AI across the board.

Speaker #4: For us, ultimately, the goal is how do you build better products for customers, which will ultimately drive, you know, both growth as well as overall profit dollars.

5 years ago, um, is that in the business world that this is 2021. You know, I was forecasting, that there would be too big Wars that would occur 1 is kind of the battle for attention and and you you see that playing out with um you know, chat chat assistance and and other types of um, more powerful assistance now and then the other is kind of, you know, the battle for atoms. And I do think that the 2 will come and partner with 1 another um and our focus is squarely on, you know, making sure that we Master the physical role. So we can be the most useful to all these digital assistants. Um, you know, when they kind of, you know, come around to focus on agent to Commerce that, you know, will be um, you know, willing partners and grow together.

Speaker #4: Ask was one of the examples in which we're driving benefit to customers. We've done similar things on both merchant side. We were helping merchants onboard faster.

Operator: The next question is from the line of Doug Anmuth of JP Morgan. Your line is now open. Please go ahead.

The next question is from the line of Doug Anmuth of JP Morgan.

Speaker #4: On the Dasher side, we've been with conversational bodies where Dashers, if they're stuck, they can actually chat with the agent to help themselves get unstuck.

Your line is now open. Please go ahead.

Doug Anmuth: Great. Thanks for taking the question. I know you don't manage for take rate, but just wanted to get a little bit more color just on net revenue margin and the pickup that you saw in Q2. Just trying to understand some of the drivers there in terms of how much might have been Deliveroo contribution versus advertising, and fee changes, and how you think about that going forward. Thanks.

Speaker #4: At the same point, look, we're seeing productivity gains across the board. You know, internally, we're using it in sales, you know, accounting, marketing, finance as well.

Speaker #4: The goal for us has always been it's not just purely about encouraging the usage. How do you actually drive efficiency as well? We've taken a number of steps.

Speaker #4: We've built models where internally the tasks are routed to the right model depending on what the actual cost, quality, and efficiency is. We've put caps in place.

Great, thanks for taking the question. Um, I know you don't manage for take rate. Um, I just wanted to get a little bit more color, just on net revenue margin and the pickup that you saw kind of been too queue. Uh, just trying to understand some of the drivers there in terms of how much might have been delivered contribution versus advertising and and feature changes and how you think about that going forward. Thanks.

Ravi Inukonda: Hey, Doug. Let me take that one. Look, you are right. We are not operating the business towards take rate or net revenue margin percentage. Our goal has been always to optimize for overall profit dollars, and as you can see, pretty strong quarter from that perspective, as well as the Q3 guide. Look, lots of moving parts within the take rate. The Q1, Q2 increase, which is what I think you are referring to, is largely from Dasher. Look, Dasher costs are seasonal for us. When you go from Q1 to Q2, Dasher costs are lower in Q2. That is what gave rise to the tick up in take rate that you saw from Q1 to Q2.

Speaker #4: We've also you know, incorporated some of the AI budgets into teams' existing budgets. Look, we are seeing gains from, you know, the usage of AI.

Hey Doug, let me take another look. I mean, you're right—I mean, we're not operating the business towards the take rate or to have any specific margin percentage.

Speaker #4: The sharper question for us is how do you take the efficiency gains and reinvest that back in the business? Look, we are investing in building some large areas, right?

Speaker #4: We've talked about autonomy. We've talked about AI. We've talked about the unification of the tech stack. These are all areas where we think it's gonna be strong, long-term ROI for us.

Speaker #4: The goal for us is how do you take the efficiency gains, whether it's AI or any other part of the P&L, but the philosophy is the same, right?

Ravi Inukonda: If you are thinking about from a modeling perspective, what I would expect for the rest of the year, I would expect take rate to slightly be in the similar range in Q3, so flattish from Q2 to Q3, and lower in Q4. Again, as a reminder, I have mentioned this before, Q4 Dasher costs are higher for us. That will impact take rate, so you should expect Q4 take rate to be slightly lower than the Q3 is. Net-net, look, the goal for us is not to manage to a specific line in the P&L, especially the take rate percentage. Our goal is to invest flexibly up and down the P&L.

Speaker #4: How do you reinvest that back in the business? Ultimately, to build scale and durability over a longer period of time, which leads to higher overall free cash flow production.

Speaker #4: There's largely how we're thinking about the efficiency gains, but we're happy with what we're seeing in the business today.

Our goal has been always to optimize for overall profit dollars and as you can see pretty strong quarter from that perspective as well as the Q3 guide. Look, lots of moving Parts. Within the take rate, the q1q increase, which is what I think you're referring to is largely from Dasher. Look, Dasher costs are seasonal for us. Uh, when you go from q1 to Q2 Dash, will cost a lower in Q2, that's what gave rise to sort of the tick up and take rate that you saw from q1 and Q2. And if you're thinking about, um, from a modeling perspective, what I would expect, you know, for the rest of the year, I'd expect take it to slightly be in the similar range in Q3. So a flat is from Q2 to Q3 and lower in Q4. Again, as a reminder, I mentioned this before Q4 Dash across our higher for us. That'll impact take rate. So you should expect Q4 take care to be slightly lower than

23 is, but net Network. I mean, the goal for us is not to manage to a specific line in the pnl, especially in the take rate percentage. Our goal is to invest flexibly up and down the pnl

Operator: The next question is from the line of Tom Champion of Piper Sandler. Your line is now open. Please go ahead.

The next question is from the line of Tom champion of Piper Sandler. Your line is now open, please go ahead.

Tom Champion: Good afternoon. Thanks for taking the question. Ravi, I would just be curious about your big picture view on AI spending and the ROI that you are seeing, and I am curious if it has impacted your future hiring plans at all. Thank you.

Good afternoon. Thanks for taking the question. Uh ravia just be curious about your big picture view on AI spending and the ROI that you're seeing and I'm curious if it's impacted your future hiring plans at all. Thank you.

Ravi Inukonda: Sure. Let me start with, not just purely about driving cost efficiency for us, right? We said earlier on the call, we are encouraging our teams to use AI across the board. For us, ultimately, the goal is how do you build better products for customers, which will ultimately drive both growth as well as overall profit dollars. Ask was one of the examples in which we're driving benefit to customers. We've done similar things on both merchant side, where we're helping merchants onboard faster. On the Dasher side, we've built conversational buddies where Dashers, if they're stuck, they can actually chat with the agent to help themselves get unstuck. At the same point, we're seeing productivity gains across the board. Internally, we're using it in sales, accounting, marketing, finance as well. The goal for us has always been, it's not just purely about encouraging the usage.

Not just purely about driving cost efficiency for us, right? Like we said earlier, on the call, look, we are encouraging teams to use, AI across the board for us. Ultimately, the goal is, how do you build better products for customers, which will ultimately drive, you know, both growth as well as overall profit dollars? As was 1 of the examples in which we are driving benefit to customers, we've done similar things on both merchandise, we were helping merchants on board faster, on the Dasher side, we built conversational bodies, where Dashers if they are stuck, they can actually chat with the agent to help themselves get unstuck.

Ravi Inukonda: How do you actually drive efficiency as well? We've taken a number of steps. We've built models where internally the tasks are routed to the right model, depending on what the actual cost, quality, and efficiency is. We've put caps in place. We've also incorporated some of the AI budgets into teams' existing budgets. We are seeing gains from the usage of AI. The sharper question for us is how do you take the efficiency gains and reinvest that back in the business? We are investing in building some large areas, right? We've talked about autonomy, we've talked about AI, we've talked about the unification of the tech stack. These are all areas where we think it's going to be strong long-term ROI for us.

Ravi Inukonda: The goal for us is how do you take the efficiency gains, whether it's AI or any other part of the P&L, but the philosophy is same, right? How do you reinvest that back in the business ultimately to build scale and durability over a longer period of time, which leads to higher overall free cash flow production? That's largely how we're thinking about the efficiency gains, but we're happy with what we're seeing in the business today.

At the same point, look, we are seeing productivity in the cost award, you know, internally we're using it in sales, you know, accounting marketing Finance as well. The goal for us has always been it's not just purely about encouraging the usage, how do you actually drive efficiency as well? We've taken a number of steps, we've built models, where internally the tasks are routed to the right model depending on what the actual cost quality and efficiency is we put caps in place? We also, you know, Incorporated some of the AI budgets into teams existing budgets. Look, we are seeing gains from, you know, the usage of AI. The sharper question for us is, how do you take the efficiency gains and reinvest that back in the business? Look, we are investing in building some large areas. So, we've talked about autonomy, we've talked about AI, we've talked about the unification of the tech stack, these are all areas where we think it's going to be strong long-term Roi for us.

The goal for us is, how do you take the efficiency gains? Whether it's AI or any other part of the pnl? But the philosophy is same, right? How do you reinvest that back into the business? Ultimately to build scale and durability over a longer period of time which leads to higher overall, free cash, flow production. There's largely how we think about the efficiency again.

Operator: There are no further questions at this time. This concludes today's call. Thank you for attending. You may now disconnect.

There are no further questions at this time. This concludes today's call. Thank you for attending. You may now disconnect.

Michael Morton: Goodbye.

Operator: Goodbye.

Q2 2026 DoorDash Inc Earnings Call

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