Q3 2026 DoorDash Inc Earnings Call

October 29, 2026

Speaker #1: On your telephone keypad. It will draw your question. Please press *1 again. I will now hand the call over to Weston Twigg. Please go ahead.

Operator: On your telephone keypad. To withdraw your question, please press star one again. I will now hand the call over to Weston Twigg. Please go ahead.

Speaker #2: All right, thank you, Dustin. good afternoon, everyone, and thanks for joining us for our Q3 2026 earnings call. I'm pleased to be joined today by co-founder and chair and CEO, Tony Xu, and CFO, Ravi Inukonda.

Weston Twigg: All right. Thank you, Dustin. Good afternoon, everyone, and thanks for joining us for our Q3 2026 earnings call. I am pleased to be joined today by Co-founder, Chair, and CEO, Tony Xu, and CFO, Ravi Inukonda. We will 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. We will also be making forward-looking statements about our pending acquisition of Instacart, including, without limitation, the expected timing and likelihood of completion of the acquisition and our plans, objectives, intentions, and expectations with respect to the acquisition and the combined company. 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: 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: When we— we will also be making forward-looking statements about our pending acquisition of Instacart, including without limitation, the expected timing and likelihood of completion of the acquisition, and our plans, objectives, intentions, and expectations with respect to the acquisition, the comp— and the combined company.

Speaker #2: Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those described. Many of these uncertainties are described in our SEC filings, including our most recent Form 10-K and 10-Q.

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

Weston Twigg: 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 our non-GAAP financial measures. Information regarding our non-GAAP financial measures, including a reconciliation of such non-GAAP measures and 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. 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. An audio replay of the call will be available on our website shortly after the call ends. Operator, I will pass it back to you, and we can take our first question.

Speaker #2: During this call, we will discuss certain non-GAAP financial measures, information regarding our non-GAAP financial measures, including a reconciliation of such non-GAAP measures that 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: 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.

[Company Representative] (DoorDash): We will also be making forward-looking statements about our pending acquisition of Instacart, including, without limitation, the expected timing and likelihood of completion of the acquisition and our plans, objectives, intentions, and expectations with respect to the acquisition and the combined company. 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. 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 our non-GAAP financial measures.

Weston Twigg: We will also be making forward-looking statements about our pending acquisition of Instacart, including, without limitation, the expected timing and likelihood of completion of the acquisition and our plans, objectives, intentions, and expectations with respect to the acquisition and the combined company. 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. 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 our non-GAAP financial measures.

Speaker #1: When we— we will also be making forward-looking statements about our pending acquisition of Instacart, including without limitations the expected timing and likelihood of completion of the acquisition, and our plans, objectives, intentions, and expectations with respect to the acquisition, and the combined company.

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

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

Operator: Thank you. We will now begin the question and answer session. Please limit yourself to one question. If you would like to ask a question, please press star one on your telephone keypad, and to withdraw your question, please press star one again. Please take up your handset when asking a question. If you are muted locally, please remember to unmute your device. Your first question comes from the line of Andrew Boone with Citizens Bank. Your line is open. Please go ahead.

Operator: Thank you. We will now begin the question-and-answer session. Please limit yourself to one question. If you would like to ask a question, please press star one on your telephone keypad, and to withdraw your question, please press star one again. Please take up your handset when asking a question. If you are muted locally, please remember to unmute your device. Your first question comes from the line of Andrew Boone with Citizens Bank. Your line is open. Please go ahead.

Speaker #1: 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 #1: Please pick up your handset when asking a question. And if you're muted locally, please remember to unmute your device. And your first question comes from the line of Andrew Boone, with Citizens Bank.

Speaker #1: 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 #1: Your line is open. Please go ahead.

Speaker #3: Thanks so much for taking the question. Tony, you laid out a pretty compelling case in terms of adding additional demand to dash marks. Can you just flesh that out, help us understand what your vision is for dash marks and how Instacart plays into that?

Speaker #1: During this call, we will discuss certain non-GAAP financial measures. Information regarding our non-GAAP financial measures, including a reconciliation of such non-GAAP measures to the most directly comparable GAAP financial measures, may be found in our earnings release, which is available on our investor relations website at ir.doordash.com.

Andrew Boone: Thanks so much for taking the question. Tony, you laid out a pretty compelling case in terms of adding additional demand to DashMarts. Can you just flesh that out, help us understand what your vision is for DashMarts and how Instacart plays into that? Thank you.

[Company Representative] (DoorDash): Information regarding our non-GAAP financial measures, including a reconciliation of such non-GAAP measures and 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. 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. An audio replay of the call will be available on our website shortly after the call ends. Operator, I will pass it back to you, and we can take our first question.

Weston Twigg: Information regarding our non-GAAP financial measures, including a reconciliation of such non-GAAP measures and 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. 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. An audio replay of the call will be available on our website shortly after the call ends. Operator, I will pass it back to you, and we can take our first question.

Speaker #3: Thank you.

Speaker #1: 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 #4: Yeah. I mean, if— if you think about where grocery delivery is, it really is just a fraction of what its potential could be. And, you know, I think the reason— and I've said this, you know, quite a lot in the past— that, you know, the product really isn't there yet.

Tony Xu: Yeah. I mean, if you think about where grocery delivery is, it really is just a fraction of what its potential could be. I think the reason, I have said this quite a lot in the past, that the product really is not there yet. Customers today are still being asked to pay a premium for imperfect delivery. The question is: how can we actually ensure that we offer perfect deliveries at the most affordable prices? The way I think about this is, it really is a sequencing roadmap. Our journey really started 5 years ago when we began our own work in New Verticals. It has been a very successful endeavor. As part of that journey, we recognized that in order to offer the best possible service at the most affordable prices, we really needed to manage the inventory because stock-outs were a key issue.

Speaker #1: Operator, I'll pass it back to you, and we can take our first question.

Speaker #4: Customers today are still being asked to pay a premium for imperfect delivery. So the question is, you know, how can we actually ensure that we offer perfect deliveries at the most affordable prices?

Operator: Thank you. We will now begin the question and answer session. Please limit yourself to one question. If you would like to ask a question, please press star 1 on your telephone keypad, and to withdraw your question, please press star 1 again. Please take off your headset when asking a question. If you are muted locally, please remember to unmute your device. Your first question comes from the line of Andrew Boone with Citizens Bank. Your line is open. Please go ahead.

Speaker #2: Thank you. We will now begin the question-and-answer session. Please limit yourself to one question. If you would like to ask a question, please press star 1 on your telephone keypad, and to enter a question, please press star 1 again.

Speaker #4: And, you know, the way I think about this is, it— it really is a sequencing roadmap. And, you know, our— our journey really started 5 years ago when we— you know, began our own work in New Verticals.

Speaker #2: Please pick up your handset when asking a question. And if you're muted locally, please remember to unmute your device. Your first question comes from the line of Andrew Boom.

Speaker #4: and it's been a very successful endeavor. as part of that journey, we recognized that in order to offer the best possible service at the most affordable prices, we really needed to manage the inventory.

Speaker #2: With Citizens Bank, your line is open. Please go ahead.

Speaker #1: Thanks so much for taking the question. Tony, you laid out a pretty compelling case in terms of adding additional demand to Dashmarks. Can you just flesh that out, help us understand what your vision is for Dashmarks, and how Instacart plays into that?

Speaker #4: Because stockouts were a key issue. When you look at, for example, the deliveries that we fulfill from dash marks versus the deliveries that we do third-party, even though we have best-in-class logistics operations, quality, in the third-party stores, we are— you know, near perfect in our deliveries with dash marks, but we're only in the low 90s in terms of our accuracy through the third-party stores.

Tony Xu: When you look at, for example, the deliveries that we fulfill from DashMarts versus the deliveries that we do third party, even though we have best-in-class logistics operations quality in the third-party stores, we are near perfect in our deliveries with DashMarts, but we are only in the low 90s in terms of our accuracy through the third-party stores. So there is a meaningful gap. But we have been able to prove demonstrably that we can close it both first by holding our own inventory and now actually managing thousands of items for fantastic retail partners like Giant Eagle or Albertsons, and many others. But when you think about this business, it is a fixed cost business when you are managing inventory. So scale is really helpful.

Speaker #1: Thank you.

Tony Xu: Yeah. If you think about where grocery delivery is, it really is just a fraction of what its potential could be. I think the reason, I have said this quite a lot in the past, that the product really is not there yet. Customers today are still being asked to pay a premium for imperfect delivery. The question is, how can we actually ensure that we offer perfect deliveries at the most affordable prices? The way I think about this is, it really is a sequencing roadmap. Our journey really started 5 years ago when we began our own work in new verticals. It has been a very successful endeavor. As part of that journey, we recognized that in order to offer the best possible service at the most affordable prices, we really needed to manage the inventory, because stock-outs were a key issue.

Speaker #3: Yeah. I mean, if you think about where grocery delivery is, it really is just a fraction of what

Speaker #4: what its potential could be. And, you know, I think the reason— and I've said this, you know, quite a lot in the past— that, you know, the product really isn't there yet.

Speaker #4: So there's a meaningful gap. but we've been able to prove, demonstrably that we can close it both, first, by holding our own inventory, and now actually managing thousands of items for, you know, fantastic retail partners like Giant Eagle or Albertsons.

Speaker #4: and many others. but when you think about this business, it's a fixed-cost business. When you're managing inventory, so scale is really helpful. And, you know, when I think about today's news in partnering with Instacart and the fact that they have unique demand— or, you know, orders that are unique to our network— that not only helps— you know, certainly on a day-one one scenario post-close, where the added density in the last-mile network brings fulfillment efficiencies to offer faster delivery, as well as lower cost throughout the system, but it allows us, to continue to invest on our, you know, end-stage journey of building what we believe will be the best-in-class product for all retailers to be able to compete against the world's biggest companies.

Speaker #4: And the way I think about this is it really is a sequencing roadmap. And our journey really started 5 years ago when we began our own work in new verticals, and it's been a very successful endeavor.

Tony Xu: When I think about today's news in partnering with Instacart and the fact that they have unique demand, or orders that are unique to our network, that not only helps, certainly on a day 1 scenario post-close, where the added density in the last mile network brings fulfillment efficiencies to offer faster delivery as well as lower cost throughout the system. But it allows us to continue to invest on our end state journey of building what we believe will be the best-in-class product for all retailers to be able to compete against the world's biggest companies. That will enable faster delivery. It will enable more affordable prices, which in turn will generate more sales for every grocer and retailer, and more earnings opportunity for every shopper.

Speaker #4: As part of that journey, we recognize that in order to offer the best possible service at the most affordable prices, we really needed to manage the inventory because stockouts were a key issue.

Tony Xu: When you look at, for example, the deliveries that we fulfill from DashMarts versus the deliveries that we do third party, even though we have best-in-class logistics operations quality in the third-party stores, we are near perfect in our deliveries with DashMarts, but we are only in the low 90s in terms of our accuracy through the third-party stores. So there is a meaningful gap. But we have been able to prove demonstrably that we can close it, both first by holding our own inventory and now actually managing thousands of items for fantastic retail partners like Giant Eagle or Albertsons, and many others. But when you think about this business, it is a fixed-cost business when you are managing inventory, so scale is really helpful.

Speaker #4: When you look at, for example, the deliveries that we fulfill from DashMart versus the deliveries that we do third-party, even though we have best-in-class logistics operations quality in the third-party stores, we are, you know, near perfect in our deliveries with DashMart, but we're only in these low 90s in terms of our accuracy, you know, through the third-party stores.

Speaker #4: and that, you know, will enable, faster delivery, it'll enable more affordable prices, which in turn will generate more sales for every grocer and retailer, and more earnings opportunity for every shopper.

Speaker #4: So there's a meaningful gap, but we've been able to prove demonstrably that we can close it both first by holding our own inventory and now actually managing thousands of items for, you know, fantastic retail partners like Giant Eagle or Albertsons.

Speaker #3: Thank you.

Andrew Boone: Thank you.

Speaker #4: And many others. But when you think about this business, it's a fixed-cost business when you're managing inventory. So scale is really helpful. And, you know, when I think about today's news in partnering with Instacart and the fact that they have unique demand or, you know, orders that are unique to our network, That not only helps, you know, certainly on a day-one scenario post-close where the added density in the last-mile network brings fulfillment efficiencies to offer faster delivery.

Speaker #1: Thank you. Our next question comes from the line of Joelle Khajurian from Wolf. Please go ahead.

Operator: Thank you. Our next question comes from the line of Shweta Khajuria from Wolfe. Please go ahead.

Tony Xu: When I think about today's news in partnering with Instacart and the fact that they have unique demand, or orders that are unique to our network, that not only helps, certainly on a day 1 scenario post-close, where the added density in the last mile network brings fulfillment efficiencies to offer faster delivery as well as lower cost throughout the system. It allows us to continue to invest on our end-state journey of building what we believe will be the best-in-class product for all retailers to be able to compete against the world's biggest companies. That will enable faster delivery. It will enable more affordable prices, which in turn will generate more sales for every grocer and retailer, and more earnings opportunity for every shopper.

Speaker #5: Okay. Thank you for taking my question. let me try too, please. One is, you talked in your, release and letter that you expect multi-year path to 500 million dollars or more in annual synergies, net of investments.

Shweta Khajuria: Okay. Thank you for taking my questions. Let me try two, please. One is, you talked in your release and letter that you expect multiyear path to $500 million or more in annual synergies, net of investments. Could you please talk about where those synergies will be coming from, and where do you expect to invest in year 1, over 100% of total synergies will be invested. So could you please talk about how do you see that play out? Second, on DoorDash's just core business, US marketplace GOV accelerated on tougher comps, which is impressive. I guess you talked to rise in frequency as well as new consumers ordering. Could you please talk to that a little bit more? How do you see demand trend and what, going forward, will drive organic US restaurant marketplace growth? Thanks a lot.

Speaker #5: Could you please talk about where those synergies will be coming from and where do you expect to invest in year one, the 100 over 100% of total synergies will be invested?

Speaker #4: As well as lower cost throughout the system, but it allows us to continue to invest on our, you know, end-stage journey of building what we believe will be the best-in-class product for all retailers to be able to compete against the world's biggest companies.

Speaker #5: So could you please talk about how do you— how do you see that play out? And then second, on DoorDash's just core business, US marketplace, GOV accelerated on tougher comps, which is, impressive.

Speaker #4: And that, you know, will enable faster delivery. It'll enable more affordable prices. Which in turn will generate more sales for every grocer and retailer and more earnings opportunity for every shopper.

Speaker #5: And I guess you talked to rise in frequency as well as new consumers ordering. Could you please talk to, that a little bit more, how do you see demand trend and what's going forward will drive organic, US market restaurant marketplace growth?

Andrew Boone: Thank you.

Speaker #5: Thank you. Thank you.

Speaker #5: Thanks a lot.

Operator: Thank you. Our next question comes from the line of Shweta Khajuria from Wolfe. Please go ahead.

Speaker #3: Hey, Shweta. It's, Ravi. Look, I mean, I think, both of them and Tony, feel free to chime in. Look, I mean, I think there's an opportunity, Shweta, for us to build a really large, you know, and attractive business, right?

Speaker #4: Our next question comes from Golar Labshuella Khajouri from Wolfe. Please go ahead. Okay. Thank you for taking my questions. Let me try 2, please.

Ravi Inukonda: Hey, Shweta, it's Ravi. Look, I think both of them, and Tony, feel free to chime in. Look, I think there's an opportunity, Shweta, for us to build a really large and attractive business. If you think about synergies, which is the part of your question, there's a number of big blocks that you could think about. Let's start with the growth ones first. Look, there's an opportunity for us to cross-list merchants. For example, there's categories that are not available on both platforms. There's a clear opportunity for us to be able to cross-list them, which drives growth. One of the clearest examples is we are going to be able to list our restaurants platform on Instacart, which is going to drive top-line growth. Second, I would talk about is just purely ads.

Shweta Khajuria: Okay, thank you for taking my question. Let me try two, please. One is, you talked in your release and letter that you expect multiyear path to $500 million or more in annual synergies, net of investment. Could you please talk about where those synergies will be coming from, and where do you expect to invest in year 1, over 100% of total synergies will be invested. Could you please talk about how do you see that play out? Then second, on DoorDash's core business, US marketplace GOV accelerated on tougher comps, which is impressive. I guess you talked to rise in frequency as well as new consumers ordering. Could you please talk to that a little more? How do you see demand trend, and what, going forward, will drive organic US restaurant marketplace growth? Thanks a lot.

Speaker #3: If you think about synergies, which is, you know, the part of your question, there's a number of big blocks that you could think about.

Speaker #4: One is you talked in your release and letter that you expect multi-year path to $500 million or more in annual synergies net of investments.

Speaker #3: Let's start with the growth ones first. Look, there's an opportunity for us to cross-list merchants. For example, there's categories that are not available on both platforms.

Speaker #4: Could you please talk about where those synergies will be coming from and where do you expect to invest in year 1, the over 100% of total synergies?

Speaker #3: There's a clear opportunity for us to be able to cross-list them, which drives growth. One of the clearest examples is we are going to be able to list our restaurants platform on Instacart, which is going to drive top-line growth.

Speaker #4: Will be invested. So could you please talk about how do you see that play out? And then second, on DoorDash's just core business, US marketplace, GOV accelerated on tougher comps, which is impressive.

Speaker #3: Second, I would talk about is just purely ads. CPG advertisers will now have more consumers to reach. Which will not only drive quality, but also higher ad spend, which will in turn drive more ROAS.

Ravi Inukonda: CPG advertisers will now have more consumers to reach, which will not only drive quality, but also a higher ad spend, which will in turn drive more ROAS. The third one that I would think about is there is an opportunity for us to cross-sell products. Instacart has built a really strong first-party software infrastructure, which we can now cross-sell to grocers on our platform, as well as Tony touched on DashMart fulfillment services. It is going to be an opportunity for us to make that available to more customers across both platforms. Look, on the efficiency side, Dasher density, shopper density is going to be pretty critical as you increase the volume. That is going to drive efficiency in the fulfillment network. Finally, if you look up and on the P&L, there is a number of opportunities, whether it is opportunities on sales and marketing, opportunities on support.

Speaker #3: The third one that I would think about is there is an opportunity for us to cross-sell products. Instacart has built a really strong first-party software infrastructure, which we can now cross-sell to grocers on our platform, as well as Tony touched on, dash mart fulfillment services.

Speaker #4: And I guess you talked to rise in frequency as well as new consumers ordering. Could you please talk to that a little bit more?

Speaker #4: How do you see demand trend and what going forward will drive organic US market restaurant marketplace growth? Thanks a lot. Hey, Swadha, it's Ravi.

Speaker #3: It's going to be an opportunity for us to make that available to more customers across both platforms. Look, I mean, on the efficiency side, dasher density, shopper density is going to be pretty critical, as you increase the volume.

Ravi Inukonda: Hey, Shweta, it's Ravi. Look, I think both of them, and Tony, feel free to chime in. Look, I think there's an opportunity, Shweta, for us to build a really large and attractive business, right? If you think about synergies, which is the part of your question, there's a number of big blocks that you could think about. Let's start with the growth ones first. Look, there's an opportunity for us to cross-list merchants. For example, there's categories that are not available on both platforms. There's a clear opportunity for us to be able to cross-list them, which drives growth. One of the clearest examples is we are going to be able to list our restaurants platform on Instacart, which is going to drive top-line growth. Second, I would talk about is just purely ads.

Speaker #4: Look, I mean, I'll take both of them and Tony, feel free to chime in. Look, I think there's an opportunity, Swadha, for us to build a really large, you know, an attractive business, right?

Speaker #3: That's going to drive efficiency in the fulfillment network. And finally, if you look up and down the P&L, there's a number of opportunities, whether it's opportunities on sales and marketing, opportunities on support.

Speaker #4: If you think about synergies, which is, you know, the part of your question, there's a number of big blocks that you could think about.

Speaker #3: There's many opportunities that we could jointly work on together. And we've thought about the opportunities that can jointly arise from combining both platforms. You know, one thing is pretty clear.

Ravi Inukonda: There are many opportunities that we could jointly work on together. As we thought about the opportunities that can jointly arise from combining both platforms, one thing is pretty clear is putting both platforms together will actually rise to leading in growth as well as increasing in overall profit dollar production. The key for us, however, is how do you take some of the profit dollars and reinvest that back in the business to ultimately build a better product for consumers as well as grocers. Look, that is historically what we have done. To the second point in your question, which is what is driving the growth in the core marketplace, largely because of the reinvestment back in the product. Our playbook is going to be very similar here.

Speaker #4: Let's start with the growth ones first. Look, there's an opportunity for us to cross-list merchants. For example, there's categories that are not available on both platforms.

Speaker #3: Is putting both platforms together will actually rise to leading in growth, as well as increasing in overall profit dollar production. The key for us, however, is how do you take some of the profit dollars and reinvest that back in the business to ultimately build a better product for consumers, as well as grocers.

Speaker #4: There's a clear opportunity for us to be able to

Speaker #6: cross-list them, which drives growth. One of the clearest examples is we are going to be able to list our restaurants platform on Instacart, which is going to drive top-line growth.

Speaker #6: Second, I would talk about is just purely ads. CPG advertisers will now have more consumers to reach, which will not only drive quality, but also higher ad spend, which will in turn drive more ROAS.

Ravi Inukonda: CPG advertisers will now have more consumers to reach, which will not only drive quality, but also higher ad spend, which will in turn drive more ROAS. The third one that I would think about is there is an opportunity for us to cross-sell products. Instacart has built a really strong first-party software infrastructure, which we can now cross-sell to grocers on our platform, as well as Tony touched on DashMart fulfillment services. It's going to be an opportunity for us to make that available to more customers across both platforms. Look, coming on the efficiency side, Dasher density, shopper density is going to be pretty critical. As you increase the volume, that's going to drive efficiency in the fulfillment network. Finally, if you look up and down the P&L, there's a number of opportunities, whether it's opportunities on sales and marketing, opportunities on support.

Speaker #3: Look, that's historically what we've done. To the second point in your question, which is what's driving the growth in the core marketplace, largely because of the reinvestment back in the product, our playbook is going to be very similar here.

Speaker #6: The third one that I would think about is there's an opportunity for us to cross-sell products. Instacart has built a really strong first-party software infrastructure, which we can now cross-sell to grocers on our platform.

Speaker #3: You can see examples from that in our acquisition of Deliveroo as well. Where we've reinvested back in the product to ultimately drive the growth that you're seeing in the business.

Ravi Inukonda: You can see examples from that in our acquisition of Wolt as well, where we reinvested back in the product to ultimately drive the growth that you are seeing in the business. In fact, when I look at the New Verticals platform, our core business is doing really well. They are growing quite nicely. We have become volume share leaders. We have continued to improve the customer outcomes, whether it is increase in order rate, increase in order frequency, the basket size is growing. The way we think about this is this is actually an accelerant to our core business, which continues to do well. The other side, which is the core business continues to do well, which gives us, A, the conviction and the capacity to be able to do more.

Speaker #6: As well as Tony touched on, DashMod fulfillment services, it's going to be an opportunity for us to make that available to more customers across both platforms.

Speaker #3: In fact, when I look at the new verticals platform, our core business is doing really well. There's growing quite nicely. We've become volume share leaders.

Speaker #6: Look, I mean, on the efficiency side, Dasher density, shopper density is going to be pretty critical as you increase the volume. That's going to drive efficiency in the fulfillment network.

Speaker #3: We've continued to improve the customer outcomes, whether it's increase in order rate, increase in order frequency, the basket sizes are growing. So the way we think about this is, this is actually an accelerant to our core business, which continues to do well.

Speaker #6: And finally, if you look up and down the P&L, there's a number of opportunities, whether it's opportunities on sales and marketing, opportunities on support.

Speaker #3: And the other side, which is the core business continues to do well, which gives us, A, the conviction and the capacity to be able to do more.

Ravi Inukonda: There are many opportunities that we could jointly work on together. As we have thought about the opportunities that can jointly arise from combining both platforms, one thing is pretty clear, putting both platforms together will actually rise to leading in growth as well as increasing in overall profit dollar production. The key for us, however, is how do you take some of the profit dollars and reinvest that back in the business to ultimately build a better product for consumers as well as grocers? Look, that is historically what we have done. To the second point in your question, which is what is driving the growth in the core marketplace, largely because of the reinvestment back in the product, our playbook is going to be very similar here.

Speaker #6: There's many opportunities that we could jointly work on together. And we've thought about the opportunities that can jointly arise from combining both platforms. You know, one thing is pretty clear is putting both platforms together will actually rise to leading in growth as well as increasing overall profit dollar production.

Speaker #3: Now, if you're thinking about it from a modeling perspective, the way I would think about the model is, year one is going to be the investments that will make to build a better product.

Ravi Inukonda: Okay, thinking about it from a modeling perspective, the way I would think about the model is year 1 is going to be the investment that we will make to build a better product. Year 2, we will make progress. Finally, in year 3, my expectation is we will drive $500 million of incremental synergies to the bottom line that is net of the investments that we plan to make.

Speaker #3: Year two will make progress. And finally, in year three, my expectation is will drive 500 million of incremental synergies to the bottom line. That is net of the investments that we plan to make.

Speaker #6: The key for us, however, is how do you take some of the profit dollars and reinvest that back in the business? To ultimately build a better product for consumers as well as grocers.

Speaker #3: And. I think the second one too. On the second one, look, I mean, you're right. I mean, the core business is doing really well.

Shweta Khajuria: Thanks, Ravi. That is helpful.

Speaker #6: Look, that's historically what we've done. To the second point in your question, which is what's driving the growth in the core marketplace, Largely because of the reinvestment back in the product.

Ravi Inukonda: On the second one, look, you are right. The core business is doing really well. It is firing on all cylinders, right? If you look at the growth that we are seeing in the business, Q3, our restaurant business actually accelerated from Q2 to Q3. In fact, when you look at the sequential growth rate in Q3, it is the fastest we have seen in the last 5-plus years. New Verticals continues to grow, both Wolt as well as Deliveroo, they also accelerated from Q2 to Q3. But more broadly, when you look at our overall US restaurants growth, it has been stable actually for the last 4 years. A lot of that has got to do with the underlying improvements in the product. We have invested back in selection. We have made subscription better. Overall paid subscribers continue to set all-time records.

Speaker #3: It's firing on all cylinders, right? If you look at the growth that we're seeing in the business, Q3, our restaurant business actually accelerated from Q2 to Q3.

Speaker #6: Our playbook is going to be very similar here. You can see examples from that in our acquisition of Deliveroo as well, where we reinvested back in the product to ultimately drive the growth that you're seeing in the business.

Ravi Inukonda: You can see examples from that in our acquisition of Wolt as well, where we have reinvested back in the product to ultimately drive the growth that you are seeing in the business. In fact, when I look at the new verticals platform, our core business is doing really well. They are growing quite nicely. We have become volume share leaders. We have continued to improve the customer outcomes, whether it is increase in order rate, increase in order frequency, the basket sizes are growing. So the way we think about this is this is actually an accelerant to our core business, which continues to do well. And the other side, which is the core business continues to do well, which gives us, A, the conviction and the capacity to be able to do.

Speaker #3: In fact, when you look at the sequential growth rate in Q3, it's the fastest we've seen in the last five-plus years. New verticals continues to grow.

Speaker #6: In fact, when I look at the new vertical platforms, our core business is doing really well. They're growing quite nicely. We've become volume share leaders.

Speaker #3: Both Bolt, as well as Deliveroo, they also accelerated from Q2 to Q3. But more broadly, when you look at our overall US restaurants growth, it's been stable, actually, for the last four years.

Speaker #6: We've continued to improve the customer outcomes, whether it's increase in order rate, increase in order frequency, the basket sizes are growing. So the way we think about this is this is actually an accelerant to our core business, which continues to do well.

Speaker #3: A lot of that has got to do with the underlying improvements in the product. We've invested back in selection. We've made subscription better. Overall paid subscribers continue to set all-time records.

Speaker #6: And the other side, which is The core business continues to do well, which gives us the conviction and the capacity to be able to do more.

Speaker #3: The combination of the work that we've done in improving the product, while continuing to drive subscription, is what you're seeing in terms of the growth that you're seeing in the business.

Ravi Inukonda: The combination of the work that we have done in improving the product while continuing to drive subscription is what you are seeing in terms of the growth that you are seeing in the business. The growth is coming from sustainable levers, which is user growth, subscription growth. The way, at least I think about it from a mental model perspective is these are compounding growths that will come in the future, which gives us a lot more confidence as we look ahead into what we can drive in terms of both growth as well as profit dollar production for the next several years.

Ravi Inukonda: If you are thinking about it from a modeling perspective, the way I would think about the model is year 1 is going to be the investment that we will make to build a better product. Year 2, we will make progress. And finally, in year 3, my expectation is we will drive $500 million of incremental synergies to the bottom line. That is net of the investments that we plan to make.

Speaker #6: If you're thinking about it from a modeling perspective, the way I would think about the model is year one is going to be the investment that will make.

Speaker #3: And again, the growth is coming from sustainable levers, which is user growth, subscription growth. And the way, at least I think about it from a mental model perspective, is these are compounding growths that will come in the future, which gives us a lot more confidence as we look ahead into what we can drive in terms of both growth, as well as profit dollar production for the next several years.

Speaker #6: To build a better product. Year 2, we'll make progress. And finally, in year 3, my expectation is we'll drive $500 million of incremental synergies to the bottom line.

Speaker #6: That is net of the investments that we plan to make. And I think the second one too. On the second one, look, I mean, you're right.

Shweta Khajuria: Thanks, Ravi. That was helpful.

Ravi Inukonda: On the second one, look, you are right. The core business is doing really well. It is firing on all cylinders, right? If you look at the growth that we are seeing in the business, Q3, our restaurant business actually accelerated from Q2 to Q3. In fact, when you look at the sequential growth rate in Q3, it is the fastest we have seen in the last 5-plus years. New verticals continues to grow, both Wolt as well as Deliveroo, they also accelerated from Q2 to Q3. But more broadly, when you look at our overall US restaurants growth, it has been stable actually for the last 4 years. A lot of that has got to do with the underlying improvements in the product. We have invested back in selection. We have made subscription better. Overall paid subscribers continue to set all-time records.

Speaker #6: I mean, the core business is doing really well. It's firing on all cylinders, right? If you look at the growth that we're seeing in the business, Q3, our restaurant business actually accelerated from Q2 to Q3.

Speaker #5: Thanks, Ravi. That was helpful.

Shweta Khajuria: Thanks, Ravi. That was helpful.

Speaker #1: Thank you. Our next question comes from the line of Deepak Mathivanan from Canada Fed's Gerald.

Operator: Thank you. Our next question comes from the line of Deepak Mathivanan from Cantor Fitzgerald. Deepak, go ahead.

Speaker #6: In fact, when you look at the sequential growth rate in Q3, it's the fastest we've seen in the last 5+ years. New verticals continues to grow.

Speaker #3: Great. Thanks for taking the question. Great. Thank you. Tony, so on the acquisition of Cod, can you talk about why now is the right time?

Deepak Mathivanan: Thanks for taking the question. Great. Thank you. Tony, on the acquisition of Instacart, can you talk about why now is the right time? Your grocery business is strong, and you have most of the retail partners, too. DashMart is offering a very differentiated value prop to retailers. Can you talk about why now is the right time? Also a second one, a high-level strategy question on AI agents. How much of the agentic experience, specifically for food use case, be it grocery delivery or food delivery, or maybe meal planning and others, do you want Dash to directly power for consumers versus ceding some of that to more generic agents like Muse? Or maybe asked another way, should we expect Dash to have its own set of personal agents specifically catered for food use cases for consumers? How should we think about that?

Speaker #6: Both Bolt as well as Deliveroo, they also accelerated from Q2 to Q3. But more broadly, when you look at our overall US restaurants growth, it's been stable actually for the last 5+ years.

Speaker #3: I mean, your grocery business is strong, and you have most of the retail partners too. Dash mart is offering a very differentiated value prop to retailers.

Speaker #6: Four years. A lot of that has to do with the underlying improvements in the product. We've invested back in selection. We've made subscription better.

Speaker #3: can you talk about why now is the right time? And then also, a second one, a high-level strategy question on AI agents. How much of the agentic experience, specifically for food use case, be it grocery delivery or food delivery, or maybe meal planning and others, do you want Dash to kind of directly power for consumers versus ceding some of that to, you know, more generic agents like Muse?

Speaker #6: Overall paid subscribers continue to set all-time records. The combination of the work that we've done in improving the product while continuing to drive subscription is what you're seeing in terms of the growth that you're seeing in the business.

Ravi Inukonda: The combination of the work that we have done in improving the product while continuing to drive subscription is what you are seeing in terms of the growth that you are seeing in the business. The growth is coming from sustainable levers, which is user growth, subscription growth. The way at least I think about it from a mental model perspective is these are compounding growths that will come in the future, which gives us a lot more confidence as we look ahead into what we can drive in terms of both growth as well as profit dollar production for the next several years.

Speaker #6: And again, the growth is coming from sustained sustainable levers, which is user growth, subscription growth. And the way at least I think about it from a mental model perspective is these are compounding growth that will come in the future.

Speaker #3: Or maybe asked another way, should we expect Dash to have its own set of personal agents specifically catered for, you know, food use cases, for consumers?

Speaker #6: Which gives us a lot more confidence as we look ahead into what we can drive in terms of both growth as well as profit dollar production for the next several years.

Speaker #3: How should we think about that? Thank you so much. Yeah, hey, Deepak. I'll take both of those. you know, on the first question about why now, I mean, it's a great question because, you know, M&A is very, very hard to do, successfully.

Deepak Mathivanan: Thank you so much.

Tony Xu: Yeah. Hey, Deepak. I will take both of those. On the first question about why now, it is a great question because M&A is very hard to do successfully. We always take these decisions extremely seriously. I would say the first thing is our core business is doing really well. Ravi touched upon a bit of this, and as you can see in the results that we just published this morning on the quarter, record highs in top line, bottom line, accelerating growth in the US restaurants business, continued fast growth on New Verticals, accelerating growth in our international properties. You continue to see product innovation from us. For example, our most recent Dash Forward event with the announcements of DoorDash Air, DashOS, and merchant software, as well as, speaking of AI agents, updates to our own AI agents. So the core business is truly firing on all cylinders.

Shweta Khajuria: Thanks, Ravi. That was helpful.

Speaker #6: Thanks, Robbie. That was helpful. Thank you.

Operator: Thank you. Our next question comes from the line of Deepak Mathivanan from Cantor Fitzgerald. Deepak.

Speaker #7: Our next question comes from the line of Deepak Mathianan from Canaccord Gerald.

Speaker #3: And, you know, and, and so we're, we're, we always take these, you know, decisions extremely seriously. I would say the first thing is, you know, our core business is doing really, really, really well.

Deepak Mathivanan: Great. Thanks for taking the question. Great. Thank you. Tony, on the acquisition of Instacart, can you talk about why now is the right time? Your grocery business is strong, and you have most of the retail partners too. DashMart is offering a very differentiated value prop to retailers. Can you talk about why now is the right time? Also, a second one, a high-level strategy question on AI agents. How much of the agentic experience, specifically for food use case, be it grocery delivery or food delivery, or maybe meal planning and others, do you want DoorDash to directly power for consumers whereas ceding some of that to more generic agents like Muse? Or maybe asked another way, should we expect DoorDash to have its own set of personal agents specifically catered for food use cases for consumers? How should we think about that?

Speaker #8: Thanks for taking the question.

Speaker #7: Great. Thank you, Tony. So on the acquisition of Carr's, can you talk about why now is the right time? I mean, your grocery business is strong and you have most of the retail partners too.

Speaker #3: you know, Ravi touched upon a bit of this, and as you can see in the results that we just published, this morning on the quarter, I mean, record highs in top-line bottom-line accelerating growth in the US restaurants business, continued fast growth on new verticals, accelerating growth in, our international properties, you, continue to see product innovation from us.

Speaker #7: DashMart is offering a very differentiated value proposition to retailers. Can you talk about why now is the right time? And then also, a second, high-level strategy question on AI agents.

Speaker #6: How much of the agentic experience specifically for food use case, be it grocery delivery or food delivery or maybe meal planning and others, do you want Dash to kind of directly power for consumers versus seeding some of that to, you know, more generic agents like Muse?

Speaker #3: You know, for example, our most recent dashboard event with the announcements of, DoorDash Air, Dash OS in merchant software, as well as, speaking of AI agents, you know, updates to our own AI agents.

Speaker #6: Or maybe asked another way, should we expect Dash to have its own set of personal agents specifically catered for, you know, food use cases for consumers?

Speaker #3: so the core business is truly firing on all cylinders. I would say the second thing is, you know, our, our big projects for the year are on track.

Speaker #6: How should we think about that? Thank you so much.

Deepak Mathivanan: Thank you so much.

Tony Xu: I would say the second thing is, our big projects for the year are on track. Obviously, the year is not over, but if you look at the projects around building a single tech stack, if you look at the projects around integrating Deliveroo, some of the results kind of speak for themselves. We are seeing customer benefits already from the single tech stack work, whether it is faster onboarding of merchants, better conversion from improved search, better SLAs for support across all audiences. These are just some of the ones that come top of mind. If you look at the Deliveroo side, we grew in Q3 at twice the rate that we did a year ago before we acquired the business. All of the big projects we had for the year were projects that are going really well.

Tony Xu: Yeah. Hey, Deepak. I will take both of those. On the first question about why now, it is a great question because M&A is very hard to do successfully. We always take these decisions extremely seriously. I would say the first thing is our core business is doing really well. Ravi touched upon a bit of this, and as you can see in the results that we just published this morning on the quarter, record highs in top line, bottom line, accelerating growth in the US restaurants business, continued fast growth on new verticals, accelerating growth in our international properties. You continue to see product innovation from us. For example, our most recent Dash Forward event with the announcements of DoorDash Air, DashOS, and merchant software, as well as, speaking of AI agents, updates to our own AI agents. The core business is truly firing on all cylinders.

Speaker #4: Yeah, hey Deepak, I'll take both of those. You know, on the first question about why now, I mean, it's a great question because, you know, M&A is very, very hard to do successfully.

Speaker #3: Obviously, the year is not over. but if you look at, you know, the projects around building a single tech stack, if you look at the projects around integrating, Deliveroo and, you know, the some of the results kind of speak for themselves.

Speaker #4: And, you know, and so we always take these decisions extremely seriously. I would say the first thing is our core business is doing really, really, really well.

Speaker #3: We're seeing customer benefits already from, you know, the single tech stack work, whether it's faster onboarding of merchants, better conversion from improved search, better SLAs for support, across all audiences.

Speaker #4: You know, Ravi touched upon a bit of this, and as you can see in the results that we just published this morning on the quarter, I mean, record highs in top line, bottom line.

Speaker #3: These are just, you know, some of the ones that come top of mind. if you look at the Rue side, you know, we're, we grew in Q3 at twice the rate that we did a year ago.

Speaker #4: Accelerating growth in the US restaurants business, continued fast growth on new verticals, accelerating growth in our international properties. You continue to see product innovation from us.

Speaker #3: Before we acquired the business. So, all of the big, big projects we had for the year, were projects, that are going really, really well.

Speaker #4: You know, for example, our most recent Dash Forward event with the announcements of DoorDash Air, Dash OS and merchant software, as well as speaking of AI agents, you know, updates to our own AI agents.

Speaker #3: And so, from a management bandwidth perspective and a sequencing perspective, we felt like we had the space to do, something offensive. And, you know, this is a space we understand really well.

Tony Xu: From a management bandwidth perspective and a sequencing perspective, we felt like we had the space to do something offensive. This is a space we understand really well, the grocery marketplace space, both because we have built our own grocery marketplace very successfully, to the premise of your question, as well as the fact that we have integrated other marketplaces very successfully into the DoorDash family, whether it is Wolt, whether it is Deliveroo, whether it is actually even thinking about how we have reinvested over the years back into product innovation in driving durable growth for our own US restaurants marketplace. I think those would be all three demonstrable examples of our understanding of how to run a marketplace at scale, both driving top-line growth durably, but also generating long-term total profit dollars. That is what we intend to do here and play offense.

Speaker #4: So the core business is truly firing on all cylinders. I would say the second thing is, you know, our, our big projects for the year are on track.

Speaker #3: The grocery marketplace space, you know, both because we built our own grocery marketplace very successfully two year to the premise of your question. As well as the fact that, you know, we've, integrated, you know, other marketplaces, very successfully into the DoorDash family, whether it's Bolt, whether it's Deliveroo, whether it's actually even, you know, thinking about how we reinvested over the years back into product innovation, in driving durable growth for our own US restaurants marketplace.

Tony Xu: I would say the second thing is our big projects for the year are on track. Obviously, the year is not over. If you look at the projects around building a single tech stack, if you look at the projects around integrating Deliveroo, some of the results speak for themselves. We are seeing customer benefits already from the single tech stack work, whether it is faster onboarding of merchants, better conversion from improved search, better SLAs for support across all audiences. These are just some of the ones that come top of mind. If you look at the Roo side, we grew in Q3 at twice the rate that we did a year ago before we acquired the business. All of the big projects we had for the year were projects that are going really well.

Speaker #4: Obviously, the year is not over. But if you look at, you know, the projects around building a single tech stack, if you look at the projects around integrating Deliveroo and, you know, the some of the results kind of speak for themselves.

Speaker #4: We're seeing customer benefits already from, you know, the single tech stack work, whether it's faster onboarding merchants, better conversion from improved search, better SLAs for support across all audiences.

Speaker #3: I think those would be all three demonstrable examples of our understanding of how to run a marketplace at scale, both driving top-line growth durably, but also generating long-term total profit dollars.

Speaker #4: These are just, you know, some of the ones that come top of mind. If you look at the Roo side, you know, we're We grew in Q3 at twice the rate that we did a year ago before we acquired the business.

Speaker #3: And that's what we intend to do here. And, and, and, and play offense. You know, when I think about Instacart, you know, I talked a little bit about how it, it feeds us on the journey towards building this Insta, which is being able to manage inventory on behalf of every retailer of every size.

Speaker #4: So all of the big projects we had for the year were projects that are going really, really well. And so from a management bandwidth perspective and a sequencing perspective, we felt like we had the space to do something offensive.

Tony Xu: When I think about Instacart, I talked a little bit about how it feeds us on the journey towards building this end state, which is being able to manage inventory on behalf of every retailer of every size. But when I think about this really is about giving every retailer of every size the ability to compete in a world where technology is only accelerating faster, disruption is happening more quickly, and the world's biggest companies are becoming larger. When I think about the capabilities that the combined companies will have, we will have best-in-class software to help each one of these grocers. That is something that Instacart has done a fantastic job building over a decade in helping grocers build their first-party online channels.

Tony Xu: From a management bandwidth perspective and a sequencing perspective, we felt like we had the space to do something offensive. This is a space we understand really well, the grocery marketplace space. Both because we have built our own grocery marketplace very successfully to the premise of your question, as well as the fact that we have integrated other marketplaces very successfully into the DoorDash family, whether it is Wolt, whether it is Deliveroo. Whether it is actually even thinking about how we have reinvested over the years back into product innovation in driving durable growth for our own US restaurants marketplace. I think those would be all three demonstrable examples of our understanding of how to run a marketplace at scale, both driving top-line growth durably, but also generating long-term total profit dollars. That is what we intend to do here and play offense.

Speaker #3: But, you know, when I think about this, you know, this really is about giving every retailer of every size the ability to compete in a world where technology is only accelerating faster, disruption is happening more quickly, and the world's biggest companies are becoming larger.

Speaker #4: And, you know, this is a space we understand really well, the grocery marketplace space, you know, both because we built our own grocery marketplace very successfully to your— to the premise of your question, as well as the fact that, you know, we've integrated, you know, other marketplaces very successfully into the DoorDash family, whether it's Vult, whether it's Deliveroo, whether it's actually even, you know, thinking about how we reinvested over the years back into product innovation in driving durable growth for our own US restaurants marketplace.

Speaker #3: And, you know, when I think about the capabilities that, you know, the combined companies will have, we'll have best-in-class software, to help, each one of these grocers.

Speaker #3: That's something that Instacart has done a fantastic job building over a decade. In helping grocers build their first-party online channels, you combine that with our first-party logistics, capabilities, which we pioneered with DoorDash Drive, also, over a decade ago.

Tony Xu: You combine that with our first-party logistics capabilities, which we pioneered with DoorDash Drive also over a decade ago, and you can offer merchants the ability to build the best-in-class first-party experience for fast delivery, their own loyalty programs, their own data, their own customers. Then you look at the third-party side of the house, the combined marketplace, and the combined reach gives every grocer higher quality orders, faster delivery, which is going to generate more sales. I think it was just the time to play offense. You are right, everything is going great with the core business. This only adds to it. Your second question was around AI agents. I would say that this is something that is still a very dynamic area. My take on all things technology is you never want to fight gravity. But at the same time, you do not want to be delusional.

Speaker #4: I think those would be all 3 demonstrable examples of our understanding of how to run a marketplace at scale. Both driving top-line growth durably, but also generating long-term total profit dollars.

Speaker #3: and you, you know, can offer merchants the ability to build the best-in-class, first-party experience for fast delivery, their own loyalty programs, their own data, their own customers.

Speaker #4: And that's what we intend to do here and play offense. You know, when I think about Instacart, You know, I talked a little bit about how it feeds us on the journey towards building this end state, which is being able to manage inventory on behalf of every retailer of every size.

Tony Xu: When I think about Instacart, I talked a little bit about how it feeds us on the journey towards building this end state, which is being able to manage inventory on behalf of every retailer of every size. When I think about this really is about giving every retailer of every size the ability to compete in a world where technology is only accelerating faster, disruption is happening more quickly, and the world's biggest companies are becoming larger. When I think about the capabilities that the combined companies will have, we will have best-in-class software to help each one of these grocers. That is something that Instacart has done a fantastic job building over a decade in helping grocers build their first-party online channels.

Speaker #3: Then you look at the third-party side of the house, the combined marketplace, and the combined reach, gives every grocer, you know, higher quality orders, faster delivery, which is going to generate more sales.

Speaker #4: But, you know, when I think about this, you know, this really is about giving every retailer of every size the ability to compete in a world where technology is only accelerating faster, disruption is happening more quickly, and the world's biggest companies are becoming larger.

Speaker #3: and so, I, I, I think it was just the time to play offense. And, and you're right. I mean, everything's going great with the core business.

Speaker #3: this only adds to it. your second question was around AI agents. I would say that this is something that is, y-y-you know, still, a, a very dynamic area.

Speaker #4: And, you know, when I think about the capabilities that the combined companies will have, we'll have best-in-class software to help each one of these grocers.

Speaker #3: And, you know, my take on all, on all things technology is, you never want to fight gravity. So, but at the same time, you don't want to be delusional.

Speaker #4: That's something that Instacart has done a fantastic job building over a decade, in helping grocers build their first-party online channels. You combine that with our first-party logistics capabilities, which we pioneered with DoorDash Drive, also over a decade ago.

Speaker #3: What I mean by that is, if you look at where AI agents are today, we're seeing maybe several hundred orders in total, you know, from some of these third-party agents, some of which you've cited in terms of whether or not, you know, customers are placing orders.

Tony Xu: You combine that with our first-party logistics capabilities, which we pioneered with DoorDash Drive also over a decade ago, and you can offer merchants the ability to build the best-in-class first-party experience for fast delivery, their own loyalty programs, their own data, their own customers. Then you look at the third-party side of the house, the combined marketplace and the combined reach gives every grocer higher quality orders, faster delivery, which is going to generate more sales. I think it was just the time to play offense. You are right. Everything is going great with the core business. This only adds to it. Your second question was around AI agents. I would say that this is something that is still a very dynamic area. My take on all things technology is you never want to fight gravity. But at the same time, you do not want to be delusional.

Tony Xu: What I mean by that is, if you look at where AI agents are today, we are seeing maybe several hundred orders in total from some of these third-party agents, some of which you have cited in terms of whether or not customers are placing orders. I think it is because they still largely view these third-party assistants, not necessarily for what I call these easier tasks, whether it is ordering food, like you said. The predominant use case of that is actually through our app. What we have been doing is actually in learning with some of these third parties, what are the features that actually drive incremental orders, in which case we can build a very healthy partnership with some of these third-party assistants.

Speaker #4: And you can offer merchants the ability to build a best-in-class first-party experience for fast delivery, their own loyalty programs, their own data, and their own customers.

Speaker #3: And, and, and I think it's because they still, you know, largely view these third-party, assistants, not necessarily for what I call these easier tasks, whether it's, you know, ordering food, like you said.

Speaker #4: Then you look at the third-party side of the house, the combined marketplace and the combined reach gives every grocer, you know, higher quality orders, faster delivery, which is going to generate more sales.

Speaker #3: the predominant use case of that is actually through our app. And what we've been doing is actually, in learning with some of these third parties, what are the features that actually drive incremental orders and, and, in which case we can build a very healthy partnership with some of these third-party assistants.

Speaker #4: And so I think it was just the time to play offense. And you're right, I mean, everything's going great with the core business. This only adds to it.

Speaker #4: Your second question was around AI agents. I would say that this is something that is, you know, still a very dynamic area. And, you know, my take on all things technology is you never want to fight gravity.

Speaker #3: But then what are the features that actually just make the DoorDash app, and our own AI agents, whether it's DoorDash Ask, that the text DoorDash, which is something that we released recently, our MCP that we've been giving to third parties and, you know, to, to use for things like, you know, corporate lunch orders, things like this, to just make our app easier to use.

Tony Xu: What are the features that actually just make the DoorDash app and our own AI agents, whether it is Ask DoorDash, the Text DoorDash, which is something that we released recently, our MCP that we have been giving to third parties to use for things like corporate lunch orders, things like this, to just make our app easier to use. I think that is the win-win of what we have been able to see, where the volumes are very low, as I kind of cited. I do believe there is a path in which you can get incremental orders, and allow customers to order the way that they want to order, especially for long consideration purchases or purchases they are not even thinking about that might be proactively made on their behalf. For the everyday ordering, what we see is people come to DoorDash, and they come back to DoorDash.

Speaker #4: But at the same time, you don't want to be delusional. What I mean by that is if you look at where AI agents are today, we're seeing maybe several hundred orders in total from some of these third-party agents.

Tony Xu: What I mean by that is if you look at where AI agents are today, we are seeing maybe several hundred orders in total from some of these third-party agents, some of which you have cited in terms of whether or not customers are placing orders. I think it is because they still largely view these third-party assistants not necessarily for what I call these easier tasks, whether it is ordering food, like you said. The predominant use case of that is actually through our app. What we have been doing is actually in learning with some of these third parties, what are the features that actually drive incremental orders, in which case we can build a very healthy partnership with some of these third-party assistants.

Speaker #3: And I think that is the win-win, of what we've been able to see. Where the volumes are very low, as, as I kind of cited, but I do believe there's a path in which you can, you know, get incremental orders and, and, and allow customers to order the way that they want to order, especially for, you know, long consideration purchases, or purchases they're not even thinking about that might be proactively made on their behalf.

Speaker #4: Some of which you've cited in terms of whether or not, you know, customers are placing orders. And I think it's because they still, you know, largely view these third-party assistance, not necessarily for what I call these easier tasks, whether it's ordering food, like you said.

Speaker #3: but for, you know, the everyday ordering, what we what we see is people come to DoorDash and they come back to DoorDash. it's easy to use.

Speaker #4: The predominant use case of that is actually through our app. And what we've been doing is actually learning with some of these third parties.

Tony Xu: It is easy to use, we are making it easier to use, and we expect to continue to do so.

Speaker #3: We're making it easier to use. And we expect to continue to do so.

Speaker #4: What are the features that actually drive incremental orders, in which case we can build a very healthy partnership with some of these third-party assistants?

Speaker #1: Eddie, but going back to your first question, right, I'll just reiterate, you know, one point. Look, I mean, you're absolutely right. Our core business on New Verticals is doing really well, right?

Ravi Inukonda: Siddharth, going back to your first question, right? I will just reiterate one point. Look, I mean, you are absolutely right. Our core business on New Verticals is doing really well, right? Look, we have been operating this business for the last 5 years. A lot of performance that we have demonstrated over the last 5 years. If you look at the performance of that business, that business is growing really fast. When I look at the cohorts, MAUs are increasing, basket size is increasing. People are using us for different use cases. We actually think the combination is truly going to be an accelerant for us. We have talked about efficiency. A couple of calls ago, I mentioned that the overall New Verticals portfolio is going to be gross profit positive by the end of the year. We are pretty close to doing that. We are pretty close to being breakeven on a gross profit level.

Tony Xu: What are the features that actually just make the DoorDash app and our own AI agents, whether it's Ask DoorDash, the Text DoorDash, which is something that we released recently, our MCP that we've been giving to third parties to use for things like corporate lunch orders, things like this, to just make our app easier to use. I think that is the win-win of what we've been able to see, where the volumes are very low, as I cited. I do believe there's a path in which you can get incremental orders and allow customers to order the way that they want to order, especially for long consideration purchases or purchases they're not even thinking about that might be proactively made on their behalf. For the everyday ordering, what we see is people come to DoorDash, and they come back to DoorDash.

Speaker #4: But then what are the features that actually just make the DoorDash app and our own AI agents, whether it's DoorDash Ask, Text DoorDash, which is something that we released recently, our MCP that we've been giving to third parties, to use for things like corporate lunch orders, things like this, to just make our app easier to use.

Speaker #1: Look, we've been operating this business for the last five years. A lot of performance, you know, that we've demonstrated over the last five years.

Speaker #1: If you look at the performance of that business, that business is growing really fast. When I look at the cohorts, MAUs are increasing, basket sizes are increasing.

Speaker #1: People are using us for different use cases. We actually think the combination is truly going to be an excellence for us. We've talked about efficiency.

Speaker #4: And I think that is the win-win of what we've been able to see, where the volumes are very low, as I kind of cited, but I do believe there's a path in which you can get incremental orders and allow customers to order the way that they want to order, especially for long consideration purchases.

Speaker #1: You know, a couple of calls ago, I mentioned that the overall New Verticals portfolio is going to be gross profit positive by the end of the year.

Speaker #1: We're pretty close to doing that. We're pretty close to being break-even on a gross profit level. So the combination of both Instacart and us actually adds to that vision.

Ravi Inukonda: The combination of both Instacart and us actually adds to that vision. We are doing it from a position of strength, the way we think about it.

Speaker #1: So we're doing it from a position of strength, the way we think about it.

Speaker #2: Awesome. Thank you.

Deepak Mathivanan: Awesome. Thank you.

Speaker #4: Or purchases they're not even thinking about that might be proactively made on their behalf. But for, you know, the everyday ordering, what we, what we see is people come to DoorDash and they come back to DoorDash.

Speaker #1: No problem.

Ravi Inukonda: No problem.

Speaker #2: Thank you. All right, next question comes from the line of Nikhil Devnani from Bernstein. Please go ahead.

Operator: Thank you. Our next question comes from the line of Nikhil Devnani from Bernstein. Please go ahead.

Tony Xu: It's easy to use. We're making it easier to use, and we expect to continue to do so.

Speaker #4: It's easy to use. We're making it easier to use, and we expect to continue to do so.

Speaker #3: Hey, thanks for taking the question. Maybe just a follow-up, to what you were just talking about, Ravi. I guess, have you found the organic effort in the category to be harder than you initially expected?

Nikhil Devnani: Hey, thanks for taking the question. Maybe just a follow-up to what you were just talking about, Ravi. I guess, have you found the organic effort in the category to be harder than you initially expected, when it comes to building wallet share or recurring habitual behavior around grocery? I appreciate that the growth has been quite strong, but I am just wondering the extent to which you feel Instacart might help with some of the more challenging aspects of the build-out. Then maybe a related question on the deal is just, given the re-platforming and integration exercise you are going through this year for the other assets, how does that help your overall integration ability and sort of the speed at which you can move with this deal once it eventually closes? Thank you.

Ravi Inukonda: Deepak, going back to your first question, right? I'll just reiterate one point. Look, you're absolutely right. Our core business on new verticals is doing really well, right? Look, we've been operating this business for the last 5 years. A lot of performance that we've demonstrated over the last 5 years. If you look at the performance of that business, that business is growing really fast. When I look at the cohorts, MAUs are increasing, basket size is increasing. People are using us for different use cases. We actually think the combination is truly going to be an accelerant for us. We talked about efficiency. A couple of calls ago, I mentioned that the overall new verticals portfolio is going to be gross profit positive by the end of the year. We're pretty close to doing that. We're pretty close to being breakeven on a gross profit level.

Speaker #6: But going back to your first question, right, I'll just reiterate one point. Look, I mean, you're absolutely right, our core business on new verticals is doing really well, right.

Speaker #3: when it comes to building wallet share or recurring habitual behavior around grocery, I appreciate that the growth has been quite strong, but I'm just wondering the, the extent to which you feel Instacart might help with some of the more challenging aspects of the build-out.

Speaker #6: Look, we've been operating this business for the last 5 years. A lot of performance that we've demonstrated over the last 5 years. If you look at the performance of that business, that business is growing really fast.

Speaker #6: When I look at the cohorts, MAUs are increasing, basket size is increasing, people are using us for different use cases. We actually think the combination is truly going to be an accelerant for us.

Speaker #3: And then maybe a related question on, on the deal is just, given the replatforming and integration exercise you're going through this year for the other assets, how does that help, your overall integration ability and, and sort of the speed at which you can move, with this deal once it once it eventually closes?

Speaker #6: We talked about efficiency, you know, a couple of calls ago I mentioned that the overall new vertical portfolio is going to be gross profit positive by the end of the year.

Speaker #6: We're pretty close to doing that. We're pretty close to being breakeven on a gross profit level. So the combination of both Instacart and us actually adds to that vision.

Speaker #3: Thank you.

Ravi Inukonda: The combination of both Instacart and us actually adds to that vision. So we're doing it from a position of strength, the way we think about it.

Speaker #1: Yeah, hey, Nikhil. I'll take the first one. Look, I mean, I think, quite the contrary, right? Like, I actually, in my answer to Deepak's question, I talked about, you know, what we're seeing from an underlying cohort perspective, right?

Ravi Inukonda: Yeah. Hey, Nikhil. I will take the first one. Look, I mean, I think quite the contrary, right? Like, actually, in my answer to Deepak’s question, I talked about what we are seeing from an underlying cohort perspective, right? The way at least we run the business is, ultimately, it is a cohort business. I look at the historic cohorts to see what the behavior of the future cohorts is going to be. When I look at mature cohorts, the behavior that we are seeing is people are using us more. More of those cohorts are coming back, which tells me that the product has gotten better. People are getting habituated to the product. Their basket sizes are increasing. Their engagement on the platform is increasing. That is now starting to translate into newer cohorts as well, where we are seeing similar signs of strength in the newer cohorts.

Speaker #6: So we're doing it from a position of strength the way we think about it. Awesome. Thank you. No problem. Thank you.

Deepak Mathivanan: Awesome. Thank you.

Ravi Inukonda: No problem.

Speaker #1: The way at least, you know, we run the business is ultimately it's a cohorted business. I look at the historic cohorts. To see what the behavior of the future cohorts is going to be.

Operator: Thank you. Our next question comes from the line of Nikhil Devnani from Bernstein. Please go ahead.

Speaker #8: Our next question comes from the line of Nikhil Vipnani from Bernstein.

Speaker #4: Please go ahead.

Speaker #1: When I look at mature cohorts, the behavior that we're seeing is people are using us more, more of those cohorts are coming back, which tells me that the product has gotten better.

Speaker #7: Hey, thanks for taking the question. Maybe just a follow-up to what you were just talking about, Ravi. I guess, have you found the organic effort in the category to be harder than you initially expected?

Speaker #1: People are getting habituated to the product. Their basket sizes are increasing. Their engagement on the platform is increasing. And that is now starting to translate into newer cohorts as well, where we're seeing similar signs of strength in the newer cohorts.

Speaker #7: When it comes to building wallet share or recurring habitual behavior around grocery? I appreciate that the growth has been quite strong, but I'm just wondering the extent to which you feel Instacart might help with some of the more challenging aspects of the build-out.

Speaker #1: That, to me, truly is what we think is actually going to happen in the overall business as well. As you continue to add more and more newer cohorts.

Ravi Inukonda: That, to me, truly is what we think is actually going to happen in the overall business as well, as you continue to add more and more newer cohorts. Our goal has been, how do you continue to improve the product? Whether it is adding more selection. Look, we just added Costco on the platform, which is off to a great start. We have increased the quality of the platform. Overall, more number of DashPass subscribers are continuing to use categories outside of the core restaurants, and that number continues to grow. All of this gives us confidence that people are using the product more, they are engaging with us even more, which is also driving into some of the efficiencies that I talked about, right?

Speaker #7: And then maybe a related question on the deal is, just given the replatforming and integration exercise you're going through this year for the other assets, how does that help your overall integration ability and sort of the speed at which you can move with this deal once it eventually closes?

Speaker #1: Our goal has been, how do you continue to improve the product? Well, it's adding more selection. Look, we just added, you know, Costco on the platform, which is off to a great start.

Speaker #1: We've increased the quality of the platform. Overall, more number of DashPass subscribers are continuing to use. Categories, you know, outside of the core restaurants, that that number continues to grow.

Speaker #7: Thank you.

Speaker #1: All of this gives us confidence that people are using the product more. They're engaging with us even more, which is also driving it to some of the efficiencies that I talked about, right?

Ravi Inukonda: Yeah. Hey, Nikhil. I will take the first one. Look, I think, quite the contrary, right? Actually, in my answer to Deepak's question, I talked about what we are seeing from an underlying cohort perspective, right? The way at least we run the business is ultimately it is a cohort business. I look at the historic cohorts to see what the behavior of the future cohorts is going to be. When I look at mature cohorts, the behavior that we are seeing is people are using us more. More of those cohorts are coming back, which tells me that the product has gotten better. People are getting habituated to the product. Their basket sizes are increasing. Their engagement on the platform is increasing. And that is now starting to translate into newer cohorts as well, where we are seeing similar signs of strength in the newer cohorts.

Speaker #6: Yeah, hey Nikhil, I'll take the first one. Look, I mean, I think quite the contrary, right? Like actually in my answer to Deepak's question, I talked about what we're seeing from an underlying cohort perspective, right?

Speaker #1: As we continue to scale that platform, we're seeing efficiency gains also come back and, you know, benefit the overall platform, which we are reinvesting back in the business.

Ravi Inukonda: As we continue to scale that platform, we are seeing efficiency gains also come back and benefit the overall platform, which we are reinvesting back in the business. Two, is the combination of both Instacart and us is actually going to accelerate this vision. The simple macro model that we have is, look, when you put both companies together, there is an obvious opportunity in driving both higher top-line growth as well as higher profit dollar production. On top of that, we are going to have synergies. Our goal is, how do you take a portion of that, reinvest that back in the business, historically like we have done with Deliveroo, like we have done with our core restaurants business, which is what is driving the stable growth.

Speaker #6: The way at least we run the business is ultimately it's a cohorted business. I look at the historic cohorts to see what the behavior of the future cohorts is gonna be.

Speaker #1: To us, the combination of both Instacart and us is actually going to accelerate this vision. And the simple, you know, mental model that we have is, look, when you put both companies together, there's an obvious opportunity in driving both higher top-line growth as well as higher profit dollar production.

Speaker #6: When I look at mature cohorts, the behavior that we're seeing is people are using us more, more of those cohorts are coming back, which tells me that the product has gotten better, people are getting habituated to the product, their basket sizes are increasing.

Speaker #1: On top of that, we're going to have synergies. Our goal is, how do you take a portion of that, reinvest that back in the business?

Speaker #6: Their engagement on the platform is increasing. And that is now starting to translate into newer cohorts as well, where we're seeing similar signs of strength in the newer cohorts.

Speaker #1: Historically, like we've done with Deliveroo, like we've done with our core restaurants business, which is what's driving the stable growth. Use that to ultimately drive a better product, which in fact will drive more growth over the longer term, as well as get the customers to adopt a better product.

Ravi Inukonda: That to me truly is what we think is actually going to happen in the overall business as well as you continue to add more and more newer cohorts. Our goal has been, how do you continue to improve the product? Whether it is adding more selection. Look, we just added Costco on the platform, which is off to a great start. We have increased the quality of the platform. Overall, more number of DashPass subscribers are continuing to use categories outside of the core restaurants, and that number continues to grow. All of this gives us confidence that people are using the product more, they are engaging with us even more, which is also driving into some of the efficiency that I talked about, right?

Speaker #6: That to me truly is what we think is actually gonna happen in the overall business as well, as you continue to add more and more newer cohorts.

Ravi Inukonda: Use that to ultimately drive a better product, which in fact will drive more growth over the longer term, as well as get the customers to adopt a better product.

Speaker #6: Our goal has been, how do you continue to improve the product? Whether it's adding more selection, Look, we just added Costco on the platform, which is off to a great start.

Speaker #2: Nikhil, I'll, I'll just add, you know, a little bit to that, before I talk about your question on, you know, the integration of the tech stacks.

Tony Xu: Nikhil, I will just add a little bit to that before I talk about your question on the integration of the tech stacks. To get, I guess, one level deeper, a lot of what I think about here is actually how can we actually help improve the Instacart business, as well as how can they help improve ours? I actually think that because of the success we have seen in running our marketplace, as well as the marketplaces, as I have mentioned, of the ones we have integrated, as well as how we have reinvested back into the US restaurants marketplace and some of the things we have learned on how to do that, I think we will actually be able to re-accelerate the Instacart marketplace.

Speaker #6: We've increased the quality of the platform overall. More number of DashPass subscribers are continuing to use categories outside of the core restaurants, and that number continues to grow.

Speaker #2: You know, you know, the, the to get, I guess, one level deeper, a lot of what I think about here is, is, is actually how can we actually help improve you know, the Instacart business as well as how can they help improve ours.

Speaker #6: All of this gives us confidence that people are using the product more, they're engaging with us even more, which is also driving into some of the efficiency that I talked about, right?

Speaker #2: And it's a actually, I think that, you know, because of the success we've seen in running, our marketplace as well as the marketplaces as I've mentioned of the ones we've integrated, as well as how we've reinvested back into the US restaurants marketplace and some of the things we've learned on how to do that, I think we'll actually be able to re-accelerate the Instacart marketplace.

Ravi Inukonda: As we continue to scale that platform, we are seeing efficiency gains also come back and benefit the overall platform, which we are reinvesting back in the business. To us, the combination of both Instacart and us is actually going to accelerate this vision. And the simple mental model that we have is, look, when you put both companies together, there is an obvious opportunity in driving both higher top-line growth as well as higher profit dollar production. On top of that, we are going to have synergies. Our goal is, how do you take a portion of that to reinvest that back in the business historically like we have done with Deliveroo, like we have done with our core restaurants business, which is what is driving the stable growth.

Speaker #6: As we continue to scale that platform, we're seeing efficiency gains. Also come back and benefit the overall platform, which we are reinvesting back in the business.

Speaker #6: To us, the combination of both Instacart and us is actually gonna accelerate this vision. And the simple mental model that we have is, look, when you put both companies together, there's an obvious opportunity in driving both higher top-line growth as well as higher profit dollar production.

Speaker #2: And I actually think that they'll help us grow a lot of the first-party software products for grocers and retailers, something that, you know, they started ahead of us, whereas we kind of focused on first-party on the restaurant front.

Tony Xu: I actually think that they will help us grow a lot of the first-party software products for grocers and retailers, something that they started ahead of us, whereas we kind of focused on first party on the restaurant front. I actually think that it is quite a nice mutual combination here, where you are bringing the best of both. Where on the DoorDash side, the best-in-class understanding of logistics operations, how to manage the marketplace to total profit dollars, how to generate product innovation, in a continuous way. Then on the Instacart side, the best-in-class software tools for grocers and their own online channels. Your second question was around tech stack. I am glad you asked it.

Speaker #6: On top of that, we're gonna have synergies. Our goal is, how do you take a portion of that, reinvest that back in the business historically, like we've done with Deliveroo, like we've done with our core restaurants business, which is what's driving the stable growth.

Speaker #2: And so I actually think that it's, it's quite a nice mutual combination here where you're bringing the best of both, where on the DoorDash side, you know, the best in class understanding of logistics operations, how to manage the marketplace to total profit dollars, how to, you know, generate product innovation, in a continuous way.

Ravi Inukonda: Use that to ultimately drive a better product, which in fact, will drive more growth over the longer term, as well as get the customers to adopt a better product.

Speaker #6: Use that to ultimately drive a better product, which in fact will drive more growth over the longer term as well as get the customers to adopt a better product.

Tony Xu: Nikhil, I will just add a little bit to that, before I talk about your question on the integration of the tech stacks. To get, I guess, one level deeper, a lot of what I think about here is actually how can we actually help improve the Instacart business as well as how can they help improve ours? I actually think that because of the success we have seen in running our marketplace, as well as the marketplaces, as I have mentioned, of the ones we have integrated, as well as how we have reinvested back into the US restaurants marketplace and some of the things we have learned on how to do that, I think we will actually be able to re-accelerate the Instacart marketplace.

Speaker #4: Nikhil, I'll just add a little bit to that before I talk about your question on the integration of the tech stacks. To get, I guess, one level deeper, A lot of what I think about here is actually how can we actually help improve the Instacart business as well as how can they help improve ours?

Speaker #2: And then on the Instacart side, you know, the best in class, you know, tools for, software tools, for grocers and their own online channels.

Speaker #2: your second question was around tech stack. I'm, I'm glad you asked this. So I mean, this is a huge endeavor for us. And, and I actually don't even think most people appreciate how big of a deal it is because we're not only trying to get, you know, all of our features into one tech stack, which means that, you know, we ship once, we ship, you know, everywhere.

Tony Xu: I mean, this is a huge endeavor for us, and I actually do not even think most people appreciate how big of a deal it is, because we are not only trying to get all of our features into one tech stack, which means that we ship once, we ship everywhere. We are actually building new infrastructure. Like, actually new infrastructure to run core DoorDash, which will make any future integration much easier to run because it will just kind of work out of the box. It will actually speed things up quite a bit. That is why we decided to undertake such a large investment, both in terms of dollars as well as people. I mean, literally rebuilding this airplane as we are flying it, part by part, engine by engine. It will actually speed things up in the future.

Speaker #4: It's actually, I think that, you know, because of the success we've seen in running our marketplace as well as the marketplaces, as I've mentioned, of the ones we've integrated, as well as how we've reinvested back into the US restaurants marketplace and some of the things we've learned on how to do that, I think we'll actually be able to reaccelerate the Instacart marketplace.

Speaker #2: but we're actually building new infrastructure. Like, actually new infrastructure to run core DoorDash. Which will make any, you know, future integration much easier to run because it'll just kind of work out of the box.

Tony Xu: I actually think that they will help us grow a lot of the first-party software products for grocers and retailers, something that they started ahead of us, whereas we kind of focused on first party on the restaurant front. I actually think that it is quite a nice mutual combination here, where you are bringing the best of both. Where on the DoorDash side, the best-in-class understanding of logistics operations, how to manage the marketplace to total profit dollars, how to generate product innovation, in a continuous way. Then on an Instacart side, the best-in-class software tools for grocers and their own online channels. Your second question was around tech stack. I am glad you asked it.

Speaker #4: And I actually think that they'll help us grow a lot of the first-party software products for grocers and retailers—something that, you know, they started ahead of us, whereas we kind of focused on first party on the restaurant front.

Speaker #2: So it will actually speed things up quite a bit. and that's why, you know, we decided to undertake such a large investment, both in terms of, you know, dollars as well as people.

Speaker #4: And so I actually think that it's it's quite a nice mutual combination here where you're bringing the best of both, where on the DoorDash side, you know, the best-in-class understanding of logistics operations how to manage the marketplace to total profit dollars, how to generate product innovation in a continuous way.

Speaker #2: I mean, literally rebuilding, you know, this airplane, as we're flying it, you know, part by part, engine by engine, and so it'll actually speed things up in the future.

Speaker #3: Thank you both.

Nikhil Devnani: Thank you both.

Speaker #4: And then on the Instacart side, the best-in-class tools for— software tools for grocers and their own online channels. Your second question was around tech stack.

Speaker #4: Thank you. Our next question comes from the line of Michael Morton from Moffat Nathanson. Please go ahead.

Operator: Thank you. Our next question comes from the line of Michael Morton from MoffettNathanson. Please go ahead.

Speaker #5: Good morning, guys. thank you. one for Tony and then one for Ravi. Tony, I was curious to how you expect this deal to be perceived by your grocery customers.

Speaker #4: I'm glad you asked it. I mean, this is a huge endeavor for us, and I actually don't even think most people appreciate how big of a deal it is because we're not only trying to get, you know, all of our features into one tech stack, which means that, you know, we ship once, we ship, you know, everywhere.

Michael Morton: Good morning, guys. Thank you. One for Tony, and then one for Ravi. Tony, I was curious how you expect this deal to be perceived by your grocery customers. Will it land with them that DoorDash is becoming at similar scale to Amazon and Walmart and going to help them in that competition, or will it raise concerns that they have now one concentrated service provider? Because those grocers are obviously powerful, with kind of local regulatory bodies. My next question for Ravi is, I was curious why you are using your shares. Historically, you have been very disciplined with repurchasing shares, and it is trading at a level where you have been active repurchasing. Just trying to get a better understanding why you see it is an opportunity to use your currency at these prices and not just more cash. Thank you.

Tony Xu: This is a huge endeavor for us, and I actually do not even think most people appreciate how big of a deal it is, because we are not only trying to get all of our features into one tech stack, which means that we ship once, we ship everywhere. We are actually building new infrastructure, like actually new infrastructure to run core DoorDash, which will make any future integration much easier to run because it will just kind of work out of the box. So it will actually speed things up quite a bit. That is why we decided to undertake such a large investment, both in terms of dollars as well as people. I mean, literally rebuilding this airplane as we are flying it, part by part, engine by engine. So it will actually speed things up in the future.

Speaker #5: will it land with them that DoorDash is becoming that similar scale to Amazon and Walmart, and going to help them in that competition? Or will it raise concerns that they have now one concentrated, like, service provider?

Speaker #4: But we're actually building new infrastructure, like actually new infrastructure to run core DoorDash. Which will make any future integration much easier to run because it'll just kind of work out of the box.

Speaker #5: Because those grocers are obviously powerful, with kind of local regulatory bodies. And then my next question for Ravi is just I was curious to why you're using your shares?

Speaker #4: So it will actually speed things up quite a bit. And that's why, you know, we decided to undertake such a large investment, both in terms of, you know, dollars as well as people.

Speaker #4: I mean, literally rebuilding, you know, this airplane. As we're flying it, you know, part by part, engine by engine. And so it'll actually speed things up in the future.

Speaker #5: Historically, you've been very disciplined with repurchasing shares. And it's trading at a level where you have been active repurchasing. So just trying to get a better understanding to why, you see it's an opportunity to use your currency at these prices and, and not just more cash.

Nikhil Devnani: Thank you both.

Speaker #4: Thank you both. Thank you.

Speaker #5: Thank you.

Operator: Thank you. Our next question comes from the line of Michael Morton, from MoffettNathanson. Please go ahead.

Speaker #2: Yeah, hey, Michael. I'll take the first one. You know, we expect a very positive response, from grocers. and, you know, a lot of what we talk about, with, with grocers, is just how are how can we together help them compete against the largest companies in the world?

Tony Xu: Yeah. Hey, Michael. I will take the first one. We expect a very positive response from grocers. A lot of what we talk about with grocers is just how can we together help them compete against the largest companies in the world, online, offline? How do we actually help them build the capabilities of great technology, a modern tech stack, as well as fast delivery? You really need all of these component parts to have a fighting chance. If you have seen what has happened in the grocery industry in particular, the largest companies are only getting larger and eating more of the pie. The question is: how do you give everybody else a fair fighting shot? I think the grocers view things very similarly. These are conversations about what is happening in the industry in terms of the biggest companies eating more of the pie.

Speaker #8: Our next question comes from the line of Michael from MoffettNagensen.

Speaker #4: Please go ahead. Good morning, guys. Thank you. I have one for Tony and then one for Ravi. Tony, I was curious about how you expect this deal to be perceived by your grocery customers.

Michael Morton: Morning, guys. Thank you. One for Tony, and then one for Ravi. Tony, I was curious as to how you expect this deal to be perceived by your grocery customers. Will it land with them that DoorDash is becoming at similar scale to Amazon and Walmart and going to help them in that competition, or will it raise concerns that they have now one concentrated service provider? Because those grocers are obviously powerful, with kind of local regulatory bodies. Then my next question for Ravi is, I was curious as to why you are using your shares. Historically, you have been very disciplined with repurchasing shares, and it is trading at a level where you have been active repurchasing. So just trying to get a better understanding as to why you see it is an opportunity to use your currency at these prices and not just more cash. Thank you.

Speaker #2: You know, online, offline. And how do we actually help them build the capabilities of great technology, a modern tech stack, as well as fast delivery?

Speaker #8: Will it land with them?

Speaker #4: DoorDash is becoming at similar scale to Amazon and Walmart and going to help them in that competition, or will it raise concerns that they have now one concentrated, like, service provider?

Speaker #2: You really need all of these component parts to have a fighting chance. I mean, if you I mean, if, if, if you've seen what has happened in the grocery industry in particular, I mean, the largest companies are only getting larger and eating more of the pie.

Speaker #4: Because those grocers are obviously powerful with kind of local regulatory bodies. And then my next question for Ravi is, just— I was curious as to why you're using your shares.

Speaker #2: And the question is, how do you give everybody else a fair fighting shot? And I think, you know, the grocers, you know, view things, very similarly.

Speaker #4: Historically, you've been very disciplined with repurchasing shares, and it's trading at a level where you have been actively repurchasing. So just trying to get a better understanding to why you see it's an opportunity to use your currency at these prices and not just more cash.

Speaker #2: I mean, these, these are conversations about, you know, what's happening in the industry in terms of the biggest, you know, companies eating more of the pie.

Speaker #2: I mean, that conversation's been happening for, you know, the past decade. And it's only kind of gone in that dire in that direction of travel.

Tony Xu: That conversation has been happening for the past decade, it has only kind of gone in that direction of travel. The question is, how do we give everybody else the capabilities to have a level playing field? That is what we see in this potential partnership, which is, we are going to give you the tools, we are going to give you the business with added density, which will help with faster delivery times, more affordable prices for everyone, greater earning opportunities for shoppers. We think it really puts together the best possible chance, where you have a modern tech stack that we are only going to continue investing in and innovating in. More and new fulfillment models, which we are inventing as we speak. Certainly, reinvestments, which has been the philosophy all along the way at DoorDash and how we have built our own marketplace.

Speaker #2: So the question is, how do we give everybody else, you know, a, a, a the capabilities to have a level playing field? and, and, and, and that's, that's what we see.

Speaker #4: Thank you. Yeah, hey Michael, I'll take the first one. You know, we expect a very positive response from grocers. And, you know, a lot of what we talk about with, with grocers is just how are— how can we together help them compete against the largest companies in the world, you know, online, offline?

Tony Xu: Yeah. Hey, Michael. I will take the first one. We expect a very positive response from grocers. A lot of what we talk about, with grocers, is just how can we together help them compete against the largest companies in the world, online, offline? And how do we actually help them build the capabilities of great technology, a modern tech stack, as well as fast delivery? You really need all of these component parts to have a fighting chance. I mean, if you have seen what has happened in the grocery industry in particular, the largest companies are only getting larger and eating more of the pie. And the question is: how do you give everybody else a fair fighting shot? And I think, the grocers, view things very similarly.

Speaker #2: you know, in this, potential partnership, which is we're going to give you the tools, we're going to give you the business with, added density, which will help with faster delivery times, more affordable, prices for everyone, greater earning opportunities for shoppers, and we think it really, you know, you know, puts together the best possible chance where you have a modern, tech stack that we're only going to continue investing and innovating in.

Speaker #4: And How do we actually help them build the capabilities of great technology, a modern tech stack, as well as fast delivery? You really need all of these component parts to have a fighting chance.

Speaker #4: I mean, if you seen what has happened in the grocery industry in particular, I mean, the largest companies are only getting larger and eating more of the pie.

Speaker #2: m-more and new fulfillment models, which we are inventing, as we speak, and certainly, you know, reinvestment, which, you know, has been the philosophy all along the way at DoorDash and how we've built our own marketplace.

Speaker #4: And the question is, how do you give everybody else a fair fighting shot? And I think, you know, the grocers view things very similarly.

Tony Xu: I mean, these are conversations about what is happening in the industry in terms of the biggest companies eating more of the pie. I mean, that conversation has been happening for the past decade, and it has only kind of gone in that direction of travel. So the question is: how do we give everybody else the capabilities to have a level playing field? And that is what we see in this potential partnership, which is, we are going to give you the tools, we are going to give you the business with added density, which will help with faster delivery times, more affordable prices for everyone, greater earning opportunities for shoppers. And we think it really puts together the best possible chance, where you have a modern tech stack that we are only going to continue investing in, innovating in. More and new fulfillment models, which we are inventing as we speak.

Speaker #4: These are conversations about, you know, what's happening in the industry in terms of the biggest companies eating more of the pie. I mean, that conversation's been happening for the past decade, and it's only kind of gone in that direction of travel.

Speaker #6: Hey, Mike, look, I mean, on the second point, look, I mean, I think, you know, you're absolutely right. We value our stock very highly.

Ravi Inukonda: Hey, Mike. Look, on the second point, I think you are absolutely right. We value our stock very highly. Look, we are focused on dilution. It was important for Instacart to have some stock in the deal, as, overall, they wanted to participate in the upside in the business. Look, we believe there is upside in the business. We are happy with the consideration between cash and stock. What I will tell you is, look, our philosophy on buyback has not changed. To the second part of your question. We have been conservative. We were going to be opportunistic. We are happy with the buybacks that we have done so far, which has generated a strong IRR. In the future, if we see there is a good opportunity to buy back, we are happy to do that as long as it is a good return on the overall investment.

Speaker #6: Look, we're focused on, dilution. It was important for, you know, Instacart to have some stock in the deal. as, you know, overall, they wanted to participate in the upside in the business.

Speaker #4: So the question is, how do we give everybody else, you know, the capabilities to have a level playing field? And that's what we see, you know, in this potential partnership, which is we're going to give you the tools, we're going to give you the business with added density, which will help with faster delivery times.

Speaker #6: Look, we believe there's upside in the business. We are happy with the consideration between cash and stock. You know, what I will tell you is, look, our philosophy on, you know, buyback has not changed, right, to the second part of your question.

Speaker #6: We've been conservative. We're going to be opportunistic. We're happy with the buybacks that we've done so far, which has generated a strong IRR. And in the future, if we see there's a good opportunity to buy back, we are happy to do that, as long as it's a good, you know, return on the overall investment.

Speaker #4: more affordable prices for everyone, greater earning opportunities for shoppers. And we think it really, you know, puts together the best possible chance where you have a modern tech stack that we're only going to continue investing in innovating.

Speaker #5: Thank you.

Michael Morton: Thank you.

Speaker #4: Thank you. Our next question comes from the line of Josh Beck from Raymond James. Please go ahead.

Operator: Thank you. Our next question comes from the line of Josh Beck from Raymond James. Please go ahead.

Speaker #4: More and new fulfillment models, which we are inventing as we speak. And certainly, you know, reinvestment, which, you know, has been the philosophy all along the way at DoorDash and how we've built our own marketplace.

Speaker #7: Yeah. Thank you for, for taking the question. I wanted to ask just a little bit. About, the ambitions, Dash, where I think in the, shareholder letter you mentioned, thousands of items from some of the big, well-known grocers.

Josh Beck: Thank you for taking the question. I wanted to ask just a little bit about the ambitions DashMart. I think in the shareholder letter, you mentioned thousands of items from some of the big, well-known grocers. If you look at someone like Instacart, they have spoken to selection of millions or tens of millions of items. Is there an ambition to have, probably not a similar selection, but maybe some fraction of that, available via DashMart? How should we think about the investment angle behind DashMart? Is this something where we need a much bigger fulfillment footprint, and we should be thinking more warehouses, more employees? I would like to hear a little bit about how we should frame that up. Thank you.

Tony Xu: Reinvestment, which has been the philosophy all along the way at DoorDash and how we have built our own marketplace.

Ravi Inukonda: Hey, Mike. Look, I mean, on the second point, I think, you are absolutely right. We value our stock very highly. We are focused on dilution. It was important for Instacart to have some stock in the deal, as overall they wanted to participate in the upside of the business. We believe there is upside in the business. We are happy with the consideration between cash and stock. What I will tell you is, our philosophy on buyback has not changed. To the second part of your question. We have been conservative. We are going to be opportunistic. We are happy with the buybacks that we have done so far, which has generated a strong IRR. In the future, if we see there is a good opportunity to buy back, we are happy to do that, as long as it is a good return on the overall investment.

Speaker #6: Hey, Mike, look, I mean, on the second point, look, I mean, I think, you know, you're absolutely right. We value our stock very highly.

Speaker #7: And, you know, if you look at maybe somebody like Instacart, they've spoken to selection of, you know, millions or tens of millions. Of items.

Speaker #6: Look, we're focused on dilution. It was important for Instacart to have some stock in the deal as overall they wanted to participate in the upside in the business.

Speaker #7: So is there, you know, an ambition to have you know, probably not a similar selection, but maybe some, some fraction of that, available via Dashmart and kind of what, you know how should we think about the investment angle behind, Dashmart?

Speaker #6: Look, we believe there's upside in the business. Happy with the consideration between cash and stock. You know what I will tell you is, look, our philosophy on, you know, buyback has not changed, right?

Speaker #6: To the second part of your question, we've been conservative, we're gonna be opportunistic. We're happy with the buybacks that we've done so far, which has generated a strong IRR.

Speaker #6: And in the future, if we see there's a good opportunity to buy back, we are happy to do that as long as it's a good return on the overall investment.

Speaker #7: Is this something where we need a much bigger fulfillment footprint and we should be thinking, you know, more, more warehouses, more employees? Just, you know, like to hear a little bit about, you know, how we should frame that up.

Michael Morton: Thank you.

Speaker #6: Thank you. Thank you.

Operator: Thank you. Our next question comes from the line of Josh Beck from Raymond James. Please go ahead.

Speaker #7: Thank you.

Speaker #2: Sure. yeah, hey, Josh. I'll, I'll, I'll take that one. I mean, if you look at the next decade of work, I mean, it really is about, making sure that we can build the local infrastructure for all things last-mile delivery for everything inside your city.

Speaker #8: Our next question comes from the line of Josh Beck from Raymond James.

Tony Xu: Sure. Yeah. Hey, Josh. I will take that one. If you look at the next decade of work, it really is about making sure that we can build the local infrastructure for all things last-mile delivery for everything inside your city. That is what DoorDash is working on. That is about merchant software. That is about building new fulfillment models, so some of the warehousing that you are discussing. Of course, it is always about making sure that we have the highest quality and most affordable logistics network. It is why we are investing deeply into autonomy, both land vehicles and drones. You are right, there is going to be investment. The way I think about this is a lot of the real estate, though, that we are talking about, in many ways has already been designed for us.

Speaker #4: Please go ahead.

Josh Beck: Yeah. Thank you for taking the question. I wanted to ask just a little bit about the ambitions on DashMart. I think in the shareholder letter, you mentioned thousands of items from some of the big well-known grocers. If you look at maybe someone like Instacart, they have spoken to selection of millions or tens of millions of items. Is there an ambition to have, probably not a similar selection, but maybe some fraction of that, available via DashMart? What, how should we think about the investment angle behind DashMart? Is this something where we need a much bigger fulfillment footprint and we should be thinking more warehouses, more employees? Just like to hear a little bit about how we should frame that up. Thank you.

Speaker #6: Yes.

Speaker #9: Thank you for taking the question. I wanted to ask just a little bit about the ambitions on Dashmore. I think in the shareholder letter you mentioned thousands of items from some of the big well-known grocers.

Speaker #2: That's what DoorDash is working on, right? So that's about merchant software. that's about building new fulfillment models, so some of the warehousing that you're discussing.

Speaker #9: And if you look at maybe somebody like Instacart, they've spoken to selection of millions or tens of millions of items. So is there an ambition to have, probably not a similar selection, but maybe some fraction of that available via Dashmart and kind of what, you know, how should we think about the investment angle behind Dashmart?

Speaker #2: And of course, it's always about making sure that we have the highest quality, and most affordable logistics network. It's why we're investing deeply into autonomy, both land vehicles and, and, and drones.

Speaker #2: and, and you and you're right, there is going to be, in, in investment. But the way I think about this is a lot of the, you know, real estate, though, that we're talking about, in many ways, has already been designed for us.

Speaker #2: we there are hundreds of thousands of grocery stores available that carry these millions of items that you're already talking about. The real question is whether or not all of that square footage and all of that shelf space is being utilized in the most productive way.

Tony Xu: There are hundreds of thousands of grocery stores available that carry these millions of items that you are already talking about. The real question is whether or not all of that square footage and all of that shelf space is being utilized in the most productive way. None of these stores, as you probably know, are built for delivery. They were effectively built for browsing. In a world where delivery and convenience are a much bigger part of consumer expectations and a growing trend, something has to change in order to offer a cost structure as well as a price point that consumers expect to see, so that they will continue growing their relationships with each one of these grocers. That is really what we believe we can build with Instacart. This is a sequencing process.

Speaker #9: Is this something where we need a much bigger fulfillment footprint and we should be thinking, you know, more more warehouses, more employees? Just, you know, like to hear a little bit about, you know, how we should frame that up.

Speaker #9: Thank you.

Speaker #2: you know, the none of these stores, as you probably know, are built for delivery. I mean, they were effectively built for browsing. And in a world where delivery and convenience are a much bigger part of consumer expectations and a growing, trend, you know, something has to change.

Tony Xu: Sure. Yeah. Hey, Josh. I will take that one. I mean, if you look at the next decade of work, I mean, it really is about making sure that we can build the local infrastructure for all things last mile delivery for everything inside your city. That is what DoorDash is working on. So that is about merchant software. That is about building new fulfillment models, so some of the warehousing that you are discussing. Of course, it is always about making sure that we have the highest quality and most affordable logistics network. It is why we are investing deeply into autonomy, both land vehicles and drones. You are right, there is going to be investment. The way I think about this is a lot of the real estate, though, that we are talking about, in many ways, has already been designed for us.

Speaker #4: Sure. Yeah, hey Josh, I'll take that one. I mean, if you look at the next decade of work, I mean, it really is about making sure that we can build the local infrastructure for all things last-mile delivery for everything inside your city.

Speaker #4: That's what DoorDash is working on, right? So that's about merchant software. That's about building new fulfillment models. So some of the warehousing that you're discussing, and of course, it's always about making sure that we have the highest quality and most affordable logistics network.

Speaker #2: In order to offer a cost structure as well as, a price point that consumers expect to see so that they will, you know, continue growing their relationships with each one of these grocers.

Speaker #2: And, and that's really what we, you know, believe we can build with Instacart. But this is a sequencing process. This is not something, you know, when you're talking about all things physical and not just pure digital, you can't just hit a button and then magically, you know, everything changes.

Speaker #4: It's why we're investing deeply into autonomy, both land vehicles and drones. Yeah, and you're right, there is going to be investment. But the way I think about this is a lot of the, you know, real estate though that we're talking about in many ways has already been designed for us.

Tony Xu: This is not something, when you are talking about all things physical and not just pure digital, you cannot just hit a button and then magically everything changes. You have to understand that it is a marriage of technology, operations, and people. A lot of these fantastic businesses, these grocers, have been built over many decades, and their processes have been built over many decades. The question is: how do we allow those stores to shine as the showrooms, and how do we actually build the correct square footage as the warehouse or the back-of-house infrastructure, such that we can offer fast delivery at attractive prices to compete against the world's biggest companies? That is the vision of DashMart, but it is a sequencing process.

Speaker #2: You have to understand that it's a marriage of technology, operations, and people. I mean, a lot of these, fantastic businesses, these grocers, have been built over many decades.

Speaker #4: There are hundreds of thousands of grocery stores available that carry these millions of items that you're already talking about. The real question is whether or not all of that square footage and all of that shelf space is being utilized in the most productive way.

Speaker #2: And their processes have been built over many decades. And the question is, you know, how do we allow those stores to shine as the showrooms?

Speaker #2: And how do we actually you know, you know, build the correct square footage as the warehouse or the back of house infrastructure such that we can offer fast delivery at attractive prices to compete against the world's biggest companies?

Speaker #4: None of these stores, as you probably know, are built for delivery. I mean, they were effectively built for browsing. And in a world where delivery and convenience are a much bigger part of consumer expectations and a growing trend, something has to change in order to offer a cost structure as well as a price point that consumers expect to see.

Speaker #2: that's the vision of Dashmart. But it's a sequencing process. You know, step one you know, day one after close, it's how do we actually take the combined network where you have added density and DoorDash understands well, how to reinvest that added density and give back value to everybody, every audience, consumers, grocers, shoppers.

Tony Xu: Step one, day one after close, it's how do we actually take the combined network where you have added density. DoorDash understands well how to reinvest that added density and give back value to everybody, every audience, consumers, grocers, shoppers. How do we then take that added scale to then drive down further costs as we think about managing warehouses, which is a fixed cost business? How do we then do that with more types of SKUs and items, so that we can bring more of the store? Then how do we bring every single store and ultimately everything inside your city to you in minutes?

Speaker #4: So that they will, you know, continue growing their relationships with each one of these grocers. And that's really what we, you know, believe we can build with Instacart.

Speaker #4: But this is a sequencing process. This is not something You know, when you're talking about all things physical and not just pure digital, you can't just hit a button and then magically, you know, everything changes.

Speaker #2: You know, how do we then you know, take, that added scale to then drive down further costs as we think about managing warehouses, which is a fixed cost business?

Tony Xu: This is not something, when you are talking about all things physical and not just pure digital, you cannot just hit a button and then magically everything changes. You have to understand that it is a marriage of technology, operations, and people. A lot of these fantastic businesses, these grocers, have been built over many decades, and their processes have been built over many decades. The question is, how do we allow those stores to shine as the showrooms, and how do we actually build the correct square footage as the warehouse or the back-of-house infrastructure, such that we can offer fast delivery at attractive prices to compete against the world's biggest companies? That is the vision of DashMart, but it is a sequencing process.

Speaker #2: How do we then do that with more types of, you know, SKUs and items so that we can bring more of the store? Then how do we bring every single store and ultimately everything inside your city to you in minutes?

Speaker #4: You have to understand that it's a marriage of technology, operations, and people. I mean, a lot of these fantastic businesses, these grocers, have been built over many decades and their processes have been built over many decades.

Speaker #4: And the question is, you know, how do we allow those stores to shine as the showrooms and how do we actually, you know, build the correct square footage as the warehouse or the back-of-house infrastructure such that we can offer fast delivery at attractive prices to compete against the world's biggest companies.

Speaker #7: very helpful. Thank you.

Josh Beck: Very helpful. Thank you.

Speaker #4: Thank you. Our next question comes from the line of Brian McTernan from Inc. and Company. Please go ahead.

Operator: Thank you. Our next question comes from the line of Bernie McTernan from Needham and Company. Please go ahead.

Speaker #8: Hi. thanks for taking the question. maybe as a follow-up on some of the, maybe more eloquently said regulatory questions, Tony, is there anything else to add in terms of what got you comfortable, in order to get this deal past regulatory?

Bernie McTernan: Hi. Thanks for taking the question. Maybe just to follow up on some of the, maybe more eloquently said, regulatory questions. Tony, is there anything else to add in terms of what got you comfortable in order to get this deal past regulatory? Then second, any additional plans on the go-to-market? It seems like the plan is to keep the Instacart brand, but just wanted to see from a consumer perspective, what we should expect. Thank you.

Speaker #4: That's the vision of DashMart, but it's a sequencing process. You know, step 1, you know, day 1 after close, it's how do we actually take the combined network where you have added density and DoorDash understands well how to reinvest that added density and give back value to everybody, every audience, consumers, grocers, shoppers, you know, how do we then, you know, take that added scale to then drive down further costs as we think about managing warehouses, which is a fixed-cost business?

Tony Xu: Step one, day one after close, it is how do we actually take the combined network where you have added density, and DoorDash understands well how to reinvest that added density and give back value to everybody, every audience, consumers, grocers, shoppers. How do we then take that added scale to then drive down further costs as we think about managing warehouses, which is a fixed cost business? How do we then do that with more types of SKUs and items, so that we can bring more of the store? How do we bring every single store and ultimately everything inside your city to you in minutes?

Speaker #8: And then second, any additional plans on the on the go-to-market? It seems like the plan is to keep the Instacart brand, but just wanted to see from a consumer perspective, what we should expect.

Speaker #8: Thank you.

Speaker #2: Yeah. I mean, the, the first thing I'll say is that, you know, you know, the, the first question I'll always ask is, like, what w what is, you know, something fair?

Tony Xu: Yeah. The first thing I will say is that, the first question I always ask is: what is something fair and what is it that we actually want to see in the world? What I believe is fair and something that we want to see in the world is a world in which every business locally, of every size, has a fair chance at competing. That is the mission of DoorDash. That is really why I created DoorDash. If that were to happen, then GDP grows locally, which is the best possible way of GDP growth, not just for jobs, but also for the safety and health of communities, and really the lifestyle of why we pick the different neighborhoods and cities in which we live.

Speaker #4: How do we then do that with more types of you know, SKUs and items so that we can bring more of the store? Then how do we bring every single store and ultimately everything inside your city to you in minutes?

Speaker #2: And what is it that we actually want to see in the world? And, you know, what I believe is fair and something that we want to see in the world is a world in which, you know, every business locally of every size has a fair chance at competing.

Speaker #2: If that is the mission of DoorDash, I mean, that's really why I created DoorDash. And if, you know, that were to happen, then GDP grows locally, which is the best possible way of GDP growth, not just for jobs, but also for the safety and health of communities, and, you know, really the lifestyle of why we pick the different neighborhoods and cities in which we live.

Josh Beck: Very helpful. Thank you.

Speaker #4: Very helpful. Thank you. Thank you.

Operator: Thank you. Our next question comes from the line of Barry McCray from B. Riley and Company. Please go ahead.

Speaker #8: Our next question comes from the line of Barry McTernan from Needham and Company.

Speaker #4: Please go ahead.

Barry McCray: Hi. Thanks for taking the question. Maybe as a follow-up on some of the, maybe more eloquently said, regulatory questions. Tony, is there anything else to add in terms of what got you comfortable in order to get this deal past regulatory? Second, any additional plans on the go-to-market? It seems like the plan is to keep the Instacart brand, but just wanted to see from a consumer perspective, what we should expect. Thank you.

Bernie McTernan: Hi. Thanks for taking the question. Maybe as a follow-up on some of the, maybe more eloquently said, regulatory questions. Tony, is there anything else to add in terms of what got you comfortable in order to get this deal past regulatory? Second, any additional plans on the go-to-market? It seems like the plan is to keep the Instacart brand, but just wanted to see from a consumer perspective, what we should expect. Thank you.

Speaker #6: Hi.

Speaker #4: Thanks for taking the question. Maybe it's a follow-up on some of the, maybe more eloquently said, regulatory questions. Tony, is there anything else to add in terms of what got you comfortable in order to get this deal past regulatory?

Speaker #2: And, you know, when I think about it from that perspective, you know, and, and you just look at what's happening in the grocery industry, for example, over the past decade or even two decades, what you see is the largest companies are only eating more and more of the pie.

Tony Xu: When I think about it from that perspective, you just look at what is happening in the grocery industry, for example, over the past decade or even two decades, what you see is the largest companies are only eating more and more of the pie. Why is that? It is because they have invested aggressively into capabilities like a modern technology stack, like fast deliveries, like new fulfillment models. That has been very difficult, when you are a smaller player, to invest in on your own. That is what this combination is really about, where DoorDash and Instacart can give every retailer a fighting chance at competing in the modern-day era. I believe that if we can do that is great for every community. So when I think about it from that perspective, that is how I get comfortable. A, knowing it is the right thing to do.

Speaker #4: And then second, any additional plans on the go-to-market? It seems like the plan is to keep the Instacart brand, but just wanted to see from a consumer perspective what we should expect.

Speaker #2: Why is that? It's because they've invested aggressively into capabilities like, a modern technology stack, like fast delivery, like new fulfillment models. And that's been very difficult, you know, when you're a smaller player, to invest in on your own.

Speaker #4: Thank you. Yeah, I mean, the first thing I'll say is that, you know, the first question I always ask is like, what is, you know, something fair and what is it that we actually want to see in the world?

Tony Xu: Yeah. The first thing I will say is that, the first question I always ask is, what is something fair, and what is it that we actually want to see in the world? What I believe is fair and something that we want to see in the world is a world in which every business locally of every size has a fair chance at competing. That is the mission of DoorDash. That is really why I created DoorDash. If that were to happen, then GDP grows locally, which is the best possible way of a GDP growth, not just for jobs, but also for the safety and health of communities, and really the lifestyle of why we pick the different neighborhoods and cities in which we live.

Speaker #2: That's what this combination's really about, where DoorDash and Instacart can give, you know, every retailer a fighting chance, a competing in the modern-day era.

Speaker #4: And, you know, what I believe is fair and something that we want to see in the world is a world in which, you know, every business locally of every size has a fair chance at competing.

Speaker #2: and I believe that if we can do that, that's great for every community. So when I think about it from that perspective, that's how I get comfortable, you know, A, you know, knowing it's the right thing to do whenever you're doing the right thing.

Speaker #4: If that is the mission of DoorDash, I mean, that's really why I created DoorDash. And if, you know, that were to happen, then GDP grows locally, which is the best possible outcome.

Tony Xu: Whenever you are doing the right thing, that usually is the right narrative for anyone. The second comment around go-to-market. We will not say too much about this for now. You are right. I think Instacart has built a great brand, and it is a very unique brand where their audience is very loyal to that brand. We certainly will support it. We certainly will bring value to consumers. For instance, for the same price that you pay for a DashPass today, you will get access to two subscription programs, the Instacart membership program, as well as the DoorDash membership program. We have some other ideas, too. A lot of the value in this partnership is really going to come in all things, what I see almost like not visible to the consumer.

Speaker #2: That usually is the right narrative for anyone. you know, the second comment around, you know, go-to-market, you know, we, w-we won't say too much about this, you know, for now.

Speaker #4: way of GDP growth, not just for jobs, but also for the safety and health of communities. And, you know, really the lifestyle of why we pick the different neighborhoods and cities in which we live.

Tony Xu: When I think about it from that perspective, and you just look at what is happening in the grocery industry, for example, over the past decade or even 2 decades, what you see is the largest companies are only eating more and more of the pie. Why is that? It is because they have invested aggressively into capabilities like a modern technology stack, like fast delivery, like new fulfillment models. That has been very difficult when you are a smaller player to invest in on your own. That is what this combination is really about, where DoorDash and Instacart can give every retailer a fighting chance at competing in the modern-day era. I believe that if we can do that is great for every community. So when I think about it from that perspective, that is how I get comfortable, knowing it is the right thing to do.

Speaker #4: And, you know, when I think about it from that perspective, you know, and you just look at what's happening in the grocery industry, for example, over the past decade or even 2 decades, what you see is the largest companies are only eating more and more of the pie.

Speaker #2: but, but you're right. I mean, I, I think, Instacart has built a great brand. And, and it's a v it's, it's a very unique brand where their audience is, you know, very, very loyal, you know, to, to that brand.

Speaker #2: And so we certainly will support it. we certainly will bring value to consumers. you know, for instance, for the same price that you pay for a DashPass today, you'll get access to two subscription programs, Instacart membership program, as well as the DoorDash membership program.

Speaker #4: Why is that? It's because they've invested aggressively into capabilities like a modern technology stack. Like fast delivery, like new fulfillment models. And that's been very difficult, you know, when you're a smaller player to invest in on your own.

Speaker #2: and we have some other ideas too, but a lot of, you know, the, the value in this, partnership is really gonna come in all things, you know, what, what I see almost like not visible to the consumer.

Speaker #4: That's what this combination is really about. Where DoorDash and Instacart can give, you know, every retailer a fighting chance at competing in the modern-day era.

Speaker #2: They'll see the benefits in the form of faster delivery, lower prices, greater selection, higher quality and accuracy of orders. grocers will see, you know, the value in terms of extra sales.

Tony Xu: They will see the benefits in the form of faster delivery, lower prices, greater selection, higher quality and accuracy of orders. Grocers will see the value in terms of extra sales. Shoppers will see the value in terms of greater earning opportunities, and communities will see the value in greater GDP.

Speaker #4: And I believe that if we can do that, that's great for every community. So when I think about it from that perspective, That's how I get comfortable, you know, A, you know, knowing it's the right thing to do.

Tony Xu: Whenever you are doing the right thing, that usually is the right narrative for anyone. The second comment around go-to-market. We will not say too much about this for now. You are right. I think Instacart has built a great brand, and it is a very unique brand where their audience is very, very loyal to that brand. So we certainly will support it. We certainly will bring value to consumers. For instance, for the same price that you pay for DashPass today, you will get access to 2 subscription programs, the Instacart membership program, as well as the DoorDash membership program. We have some other ideas, too. A lot of the value in this partnership is really going to come in all things, what I see almost like not visible to the consumer.

Speaker #4: Whenever you're doing the right thing, that usually is the right narrative for anyone. You know, the second comment around, you know, go-to-market, you know, we won't say too much about this, you know, for now.

Speaker #2: Shoppers will see the value in terms of greater earning opportunities. And communities will see the value in greater GDP.

Speaker #4: But you're right. I mean, I think Instacart has built a great brand and it's a very unique brand where their audience is very loyal.

Speaker #4: Thank you. Moving forward. Our next question comes from the line of Youssef Squali from Tourist. Please go ahead.

Operator: Thank you. Moving forward, our next question comes from the line of Youssef Squali from Truist. Please go ahead.

Speaker #4: You know, very, very loyal to that brand. And so we certainly will support it. We certainly will bring value to consumers. For instance, for the same price that you pay for DashPass today, you'll get access to 2 subscription programs.

Speaker #6: Hi, Gary. Thank you so much. I just have one question. Ravi, can you maybe just, talk a little bit about where you guys are within, with regards to your re-platforming?

Youssef Squali: Great. Thank you so much. I just have one question. Ravi, can you maybe just talk a little bit about where you guys are with regards to re-platforming? How much of it has been completed so far? Are you on track? Are you ahead on budget? As part of that question, as Instacart comes into the fold, starting in 2028, is it fair to assume that effectively the re-platforming becomes a work in progress that extends way beyond next year as well as you try to integrate Instacart and hopefully generate the type of synergies you are talking about?

Speaker #4: Instacart membership program as well as the DoorDash membership program. And we have some other ideas too, but a lot of, you know, the value in this partnership is really going to come in all things, you know, what I see almost like not visible to the consumer.

Speaker #6: How much of it, is ha-has been completed so far? Are you on track? Are you ahead on budget? and then, I guess, as, as, as part of that question, as, Instacart comes into the fold, I guess, starting in 2028, is it fair to assume that effectively the re-platforming becomes, like, a work in progress that extends way beyond next year as well as you try to integrate Instacart and, and hopefully, generate the type of synergies you're talking about?

Speaker #4: They'll see the benefits in the form of faster delivery, lower prices, greater selection, higher quality and accuracy of orders. Grocers will see, you know, the value in terms of extra sales.

Speaker #4: Shoppers will see the value in terms of greater earning opportunities, and communities will see the value in greater GDP. Thank you. Moving forward.

Speaker #6: Yeah. Hey, Youssef, let me take that one. Look, I mean, I think, on the overall, tech platform, it is on track both from a cost as well as a timeline perspective compared to what I talked about, like, a few quarters ago.

Ravi Inukonda: Yeah. Hey, Youssef, let me take that one. Look, on the overall tech platform, it is on track, both from a cost as well as a timeline perspective compared to what I talked about a few quarters ago. In fact, we have been working on it in a very modular fashion. We have several modules that are already live on the new tech stack. We are already starting to see traffic flow through it. We are truly seeing customer benefits, too. In places where we have already deployed our new tech stack, merchants are getting onboarded faster. Customer support is starting to get better. We are already starting to see early signs of benefit. In terms of the overall timeline, look, I expect that to be done by the H1 2027, which is what we had originally expected.

Speaker #6: In fact, we have, been working on it in a very modular fashion. We have several modules that are already live on the new tech stack.

Operator: Thank you. Moving forward, our next question comes from the line of Youssef Squali from Truist. Please go ahead.

Speaker #8: Our next question comes from the line of Youssef Squali from Truist.

Speaker #6: We're already starting to see traffic flow through it. We're truly seeing customer benefits too. It places where we've already deployed our new tech stack.

Speaker #4: Please go ahead.

Speaker #8: Great, thank you so much. I just have one question. Ravi, can you maybe just talk a little bit about where you guys are with regards to your re-platforming?

Speaker #6: merchants are getting onboarded faster. Customer support is, you know, starting to get better. We're already starting to see early signs of benefit. in terms of the overall timeline, look, I expect that to be done by the first half of 2027, which is what we are durationally expected.

Speaker #8: How much of it has been completed so far? Are you on track? Are you ahead on budget? And then I guess as part of that question, as Instacart comes into the fold, I guess starting in 2028, is it fair to assume that effectively the replatforming becomes like a work in progress that extends way beyond next year as well as you try to integrate Instacart and hopefully generate the type of synergies you're talking about?

Speaker #6: So overall, we feel very good about both timeline as well as cost. At your second point around, integration, of, you know, Instacart onto the overall new tech stack, look, I mean, one of the core features as we thought about the new tech stack was the ability to add more future acquisitions and future platforms onto the tech stack.

Ravi Inukonda: Overall, we feel very good about both timeline as well as cost. To your second point around integration of Instacart onto the overall new tech stack. Look, one of the core features as we thought about the new tech stack was the ability to add more future acquisitions and future platforms onto the tech stack. We have done some work around it. We think there is some investment needed, but overall, we do not think it is a massive investment to be able to operate both tech stacks on the re-platform tech stack on a go-forward basis.

Speaker #6: We've done some work around this. We think there's some investment needed, but overall, we don't think it's a massive investment to be able to operate, you know, both tech stacks, you know, on, the re-platform tech stack on a go-forward basis.

Ravi Inukonda: Yeah. Hey, Youssef, let me take that one. Look, on the overall tech platform, it is on track, both from a cost as well as a timeline perspective compared to what I talked about a few quarters ago. In fact, we have been working on it in a very modular fashion. We have several modules that are already live on the new tech stack. We are already starting to see traffic flow through it. We have truly seen customer benefits, too. In places where we have already deployed our new tech stack, merchants are getting onboarded faster. Customer support is starting to get better. We are already starting to see early signs of benefit. In terms of the overall timeline, look, I expect that to be done by H1 2027, which is what we had originally expected.

Speaker #6: Yeah, hey, Yusuf, let me take that one. Look, I mean, I think on the overall tech platform, it is on track both from a cost as well as a timeline perspective compared to what I talked about like a few quarters ago.

Speaker #2: Yeah. Youssef, I'll, you know, the one thing I'll add is something I said, I think on an earlier question, which is, you know, one of the biggest parts and, and why this current, you know, work on the building a single tech stack is so expensive is we're actually literally building new infrastructure, which is why you have a lot of different copies of, you know, compute instances, and you are, you know, over-provisioning things, and you're doing all of these things.

Tony Xu: Yeah, Youssef, the one thing I will add is something I said, I think on an earlier question, which is, one of the biggest parts and why this current work on building a single tech stack is so expensive is we are actually literally building new infrastructure, which is why you have a lot of different copies of compute instances, and you are over-provisioning things, and you are doing all of these things so that you literally have a much faster capability to build any new thing in the future. That includes, obviously, building organically, but also what Ravi said, integrating new products or new technologies or new services. It makes us ready for any modern work we want to do with AI agents. It makes us ready for any new acquisitions.

Speaker #6: In fact, we have been working on it in a very modular fashion. We have several modules that are already live on the new tech stack.

Speaker #6: We're already starting to see traffic flow through it. We've truly seen customer benefits too, in places where we've already deployed our new tech stack.

Speaker #6: Merchants are getting onboarded faster. Customer support is starting to get better. We already started to see early signs of benefit. In terms of the overall timeline, look, I expect that to be done by the first half of 2027, which is what we had originally expected.

Speaker #2: so that, you literally have a much faster, you know, capability to build any new thing in the future. that includes, you know, obviously, building organically, but also what Ravi said, in-integrating, you know, new products or new technologies or new services.

Ravi Inukonda: Overall, we feel very good about both timeline as well as cost. To your second point around integration of Instacart onto the overall new tech stack. Look, one of the core features as we thought about the new tech stack was the ability to add more future acquisitions and future platforms onto the tech stack. We have done some work around this. We think there is some investment needed, but overall, we do not think it is a massive investment to be able to operate both tech stacks on the re-platform tech stack on a go-forward basis.

Speaker #6: So overall, we feel very good about both timeline as well as cost. And your second point around integration of Instacart onto the overall new tech stack, Look, I mean, one of the core features as we thought about the new tech stack was the ability to add more future acquisitions and future platforms onto the tech stack.

Speaker #2: And so, it, it, it, it, it makes us, you know, ready for any, modern work we wanna do with AI agents. It makes us ready for, for any new acquisitions.

Speaker #6: We've done some work around this. We think there's some investment needed, but overall we don't think it's a massive investment to be able to operate both tech stacks on the re-platform tech stack on a go-forward basis.

Speaker #6: Great. Thank you both.

Youssef Squali: Great. Thank you both.

Speaker #4: Thank you. Our next question comes from the line of Dominic Ball from Rothschild and Co. Redburn.

Operator: Thank you. Our next question comes from the line of Dominic Ball from Rothschild & Co Redburn.

Speaker #4: Yeah, Yusuf, the one thing I'll add is something I said, I think, on an earlier question, which is one of the biggest parts and why this current you know, work on building a single tech stack is so expensive is we're actually literally building new infrastructure, which is why you have a lot of different copies of, you know, compute instances and you are over-provisioning things and you're doing all of these things so that you literally have a much faster, capability to build any new thing in the future.

Speaker #7: Hi, guys. Thank you. Question. I'm con I was gonna ask for the question, and, congrats on the news. I just wanna go back to another question around consumer AI agents.

Dominic Ball: Hi, guys.

Operator: Please go ahead.

Dominic Ball: Thanks for the question. Hi, guys. Thanks for the question, and congrats on the news. I just want to go back to another question around consumer AI agents. Acquiring Instacart strengthens your position in the physical world, but advertising is a meaningful contributor to DoorDash's EBITDA. How do you see that business evolving as consumers, over time, shop through AI agents? Could there be a revenue share agreement with these consumer agents going forward? Thank you.

Speaker #7: So acquiring Instacart strengthens your position in the physical world, but advertising is a meaningful contributor to DoorDash's EBITDA. How do you see that business evolving, if consumers over time?

Speaker #7: you know, shop through AI agents, and could there be a revenue sharing agreement with these consumer agents to evolve? Thank you.

Speaker #4: That includes, you know, obviously building organically, but also what Ravi said, integrating, you know, new products or new technologies or new services. And so It makes us, you know, ready for any modern work we want to do with AI agents.

Speaker #2: Yeah. Hey, Dominic. I don't know if you were able to catch the, the top of the call. We, we discussed some of this, which is, you know, right now, AI agents are you know, generating several hundred orders, across the time that they've been, up and running.

Tony Xu: Yeah. Hey, Dominic. I do not know if you were able to catch the top of the call. We discussed some of this, which is, right now, AI agents are generating several hundred orders across the time that they have been up and running. So it has been a fairly low use case. I believe that there will be opportunities in which we can generate win-win opportunities with third-party agents. My general philosophy when it comes to technology is you never want to fight gravity. That includes how consumers want to use technology. If consumers want to use technology to shop in certain ways, we are going to find a way to make that a win-win partnership. I do believe there are a lot of incrementally possible use cases, whether it be helping with long consideration purchases, whether it be doing work on your behalf proactively in the background.

Speaker #4: It makes us ready for any new acquisitions. Great, thank you both.

Speaker #2: so it's been a fairly low use case and I believe that there will be opportunities in which we can generate win-win opportunities, you know, with third-party agents.

Youssef Squali: Great. Thank you both.

Operator: Thank you. Our next question comes from the line of Dominic Ball from Rothschild & Co Redburn.

Speaker #8: Thank you. Our next question comes from the line of Dominic Ball from Rothschild & Co. Redburn.

Speaker #2: My, my general philosophy when it comes to technology is you never wanna fight gravity. And if and, and that includes how consumers wanna use technology.

Dominic Ball: Hey, guys.

Operator: Please go ahead.

Speaker #10: Hey guys, thanks for the question, and congrats on the news. I just want to go back to another question around consumer AI agents. So, acquiring Instacart strengthens your position in the physical world, but advertising is a meaningful contributor to DoorDash's EBITDA.

Speaker #2: If consumers wanna use technology to shop in certain ways, we're going to find a way to make that, a win-win partnership. And I do believe there are a lot of incrementally, possible use cases, whether it be, helping with long consideration purchases, whether it be, doing work on your behalf proactively in the background, but when it comes to, you know, you know, a task that's as simple as ordering food, we tend to see that come directly to DoorDash.

Dominic Ball: Thanks for the question. Congrats on the news. I just want to go back to another question around consumer AI agents. Acquiring Instacart strengthens your position in the physical world, but advertising is a meaningful contributor to DoorDash's EBITDA. How do you see that business evolving as consumers, over time, shop through AI agents? Could there be a revenue share agreement with these consumer agents going forward? Thank you.

Speaker #10: How do you see that business evolving if consumers over time shop through AI agents? And could there be a revenue-sharing agreement with these consumer agents going forward?

Tony Xu: When it comes to a task that is as simple as ordering food, we tend to see that come directly to DoorDash. Not to mention, we are building our own AI agents to make the shopping process a lot easier. You also have to remember one thing, which is, it is not just about ordering food. That is actually not the hard part of the entire process of ordering groceries. The hard part is making sure that they actually show up, and show up in the order, in the way that you expected, in the condition that you want. That end-to-end journey and making sure all of that is going to happen appropriately, especially when things go awry, we found that to be true living in our product. That said, I actually think that there will be advertising opportunities, even within some of these AI agents.

Speaker #4: Thank you. Yeah, hey Dominic, I don't know if you were able to catch the top of the call. We discussed some of this, which is, you know, right now AI agents are generating several hundred orders.

Speaker #2: not to mention we're building our own AI agents to make the shopping process a lot easier. but you also have to remember one thing, which is it's not just about ordering food.

Speaker #2: That's actually not the hard part of the entire process. Or ordering groceries. The hard part is making sure that they actually show up and show up in the order i-i-in the accurate i-i-in the way that you expected, in the condition that you want, that end-to-end journey and making sure all of that i-i-is gonna happen appropriately e-especially when things go awry.

Speaker #4: Across the time that they've been up and running. So it's been a fairly low use case, and I believe that there will be opportunities in which we can generate win-win opportunities.

Speaker #4: You know, with third-party agents. My general philosophy when it comes to technology is you never want to fight gravity, and that includes how consumers want to use technology.

Speaker #2: we found that to be true, living in our product. you know, that said, I actually think that there will be advertising opportunities, even with, within some of these AI agents.

Speaker #4: Consumers want to use technology to shop in certain ways. We're going to find a way to make that a win-win partnership. And I do believe there are a lot of incremental, possible use cases.

Speaker #2: But I think first and foremost, we have to find ways to bring, value, to consumers. Right now, you know, with the low volumes that I kind of, I'm, I'm telling you about, there isn't yet that value, but, you know, a-a-as hopefully, you know, that, that grows, we'll, we'll, we'll find a way to make that work.

Tony Xu: But I think first and foremost, we have to find ways to bring value to consumers. Right now, with the low volumes that I am telling you about, there isn't yet that value. But, as, hopefully, that grows, we will find a way to make that work.

Speaker #4: Whether it be helping with long consideration purchases, whether it be doing work on your behalf proactively in the background. But when it comes to, you know, a task that's as simple as ordering food, we tend to see that come directly to DoorDash.

Tony Xu: When it comes to a task that is as simple as ordering food, we tend to see that come directly to DoorDash. Not to mention, we are building our own AI agents to make the shopping process a lot easier. You also have to remember one thing, which is it is not just about ordering food. That is actually not the hard part of the entire process or ordering groceries. The hard part is making sure that they actually show up. Show up in the order, in the accurate, in the way that you expected, in the condition that you want. That end-to-end journey and making sure all of that is going to happen appropriately, especially when things go awry, we found that to be true living in our product. That said, I actually think that there will be advertising opportunities, even within some of these AI agents.

Speaker #7: Thank you.

Dominic Ball: Thank you.

Speaker #4: Not to mention we're building our own AI agents to make the shopping process a lot easier. But you also have to remember one thing, which is it's not just about ordering food.

Speaker #4: Thank you. Our last question comes from the line of Justin Post from Bank of America. Please go ahead.

Operator: Thank you. Our last question comes from the line of Justin Post from Bank of America. Please go ahead.

Speaker #4: That's actually not the hard part of the entire process, or ordering groceries. The hard part is making sure that they actually show up. And show up in the order, in the accurate, in the way that you expected, in the condition that you want.

Speaker #6: Great. Thank you. can you give us any idea of the scale of their grocery business relative to yours? And then, you know, acquisitions in the grocery space have been somewhat difficult in the past.

Justin Post: Great. Thank you. Can you give us any idea of the scale of their grocery business relative to yours? And then, acquisitions in the grocery space have been somewhat difficult in the past. As you think about talking to the regulators, what are some of the points you would think about as far as share and how this really benefits grocers? Thank you.

Speaker #6: You know, as you think about, talking to the regulators, what, what are some of the points you would think about as far as a share and, and how this really benefits grocers?

Speaker #4: That end-to-end journey and making sure all of that is going to happen appropriately, especially when things go awry. We found that to be true living in our product.

Speaker #6: Thank you. Hey, Justin, let me take, this one. Look, I mean, I think, you know, on your first question on, share of grocery, look, we, i-i you know, public information, we're not gonna talk about, disclosed, you know, anything about, Instacart.

Speaker #4: You know, that said, I actually think that there will be advertising opportunities even within some of these AI agents. But I think first and foremost, we have to find ways to bring value to consumers.

Ravi Inukonda: Hey, Justin. Let me take this one. Look, I think on your first question on share of grocery, it is public information. We are not going to talk about, disclose anything about Instacart. To your second point around the value to grocers, look, ultimately, we talked about some of this, right? The goal is how do you take the combination of both capabilities that both companies have, and how do you build a better platform, right? We have a highly sophisticated logistics engine. We have a demand generation engine. We build DashMart fulfillment services for some merchants that we talked about. Instacart has done a really good job of being able to build a very large enterprise storefront platform in addition to their own demand generation engine.

Tony Xu: But I think first and foremost, we have to find ways to bring value to consumers. Right now, with the low volumes that I am telling you about, there is not yet that value. But, as, hopefully, that grows, we will find a way to make that work.

Speaker #4: Right now, you know, with the low volumes that I kind of am telling you about, there isn't yet that value. But, you know, as hopefully, you know, that grows, we'll find a way to make that work.

Speaker #6: to your second point around, look, you know, the value to grocers, look, I mean, ultimately, we talked about some of this, right? Like, the goal is how do you take the combination of both, capabilities that both companies have, and how do you build a better platform, right?

Speaker #6: We have, you know, highly sophisticated logistics engine. We have a demand generation engine. We build dashboard fulfillment services for some merchants that we talked about.

Dominic Ball: Thank you.

Speaker #4: Thank you. Thank you.

Operator: Thank you. Our last question comes from the line of Justin Post from Bank of America. Please go ahead.

Speaker #8: Our last question comes from the line of Justin Post from Bank of America.

Speaker #6: Instacart has done a really good job of, being able to build, you know, very large, you know, enterprise, you know, storefront platform in addition to their own demand generation engine.

Speaker #4: Please go ahead. Great, thank you. Can you give us any idea of the scale of their grocery business relative to yours? And then

Speaker #6: And I think the combination of both of this will actually help increase the number of products that we can co-sell to both sets of merchants.

Ravi Inukonda: I think the combination of both of these will actually help increase the number of products that we can co-sell to both sets of merchants. In addition to that, I think there is an opportunity where we can actually invest back in the product to build a better product, not just for grocers, for consumers as well. We actually think the combination of both is a win-win for consumers, grocers, as well as overall shoppers in the ecosystem.

Speaker #11: acquisitions in the grocery space have been somewhat difficult in the past. As you think about talking to the regulators, what are some of the points you would think about as far as share and, and how this really benefits grocers?

Speaker #6: In addition to that, I think there's an opportunity where we can actually invest back in the product to build a better product, not just for grocers, right, for consumers as well.

Speaker #6: We actually think the combination of both is a win-win for consumers, grocers, as well as overall shoppers in the ecosystem.

Speaker #11: Thank you.

Ravi Inukonda: Hey, Justin. Let me take this one. Look, I think, on your first question on share of grocery. Look, it is public information. We are not going to talk about, disclose anything about Instacart. To your second point around the value to grocers. Look, ultimately, we talked about some of this, right? The goal is how do you take the combination of both capabilities that both companies have, and how do you build a better platform, right? We have a highly sophisticated logistics engine. We have a demand generation engine. We build DashMart fulfillment services for some merchants that we talked about. Instacart has done a really good job of being able to build a very large enterprise storefront platform in addition to their own demand generation engine.

Speaker #6: Hey, Justin, let me take this one. Look, I mean, I think, you know, on your first question on share of grocery, look, we, you know, public information.

Speaker #4: Thank you. Thank you. That concludes our question and answer session. This concludes today's call as well. Thank you all for attending, and you may now disconnect.

Justin Post: Thank you.

Operator: Thank you. That concludes our question and answer session. This concludes today's call as well. Thank you all for attending, and you may now disconnect.

Speaker #6: We're not going to talk about, disclose anything about Instacart. To your second point around, look, you know, the value to grocers. Look, I mean, ultimately we talked about some of this, right?

Speaker #6: Like the goal is how do you take the combination of both capabilities that both companies have and how do you build a better platform, right?

Speaker #6: We have a highly sophisticated logistics engine. We have a demand generation engine. We've built DashMart fulfillment services for some merchants that we talked about.

Speaker #6: Instacart has done a really good job of being able to build a very large enterprise storefront platform in addition to their own demand generation engine.

Speaker #6: And I think the combination of both of this will actually help increase the number of products that we can co-sell to both sets of merchants.

Speaker #6: In addition to that, I think there's an opportunity where we can actually invest back in the product to build a better product. Not just for grocers, right, for consumers as well.

Speaker #6: We actually think the combination of both is a win-win for consumers, grocers, as well as overall shoppers in the ecosystem. Thank you.

Justin Post: Thank you.

Operator: Thank you. That concludes our question and answer session. This concludes today's call as well. Thank you all for attending, and you may now disconnect.

Speaker #8: Thank you. That concludes our question and answer session. This concludes today's call as well. Thank you all for attending, and you may now disconnect.

Justin Post: Goodbye.