Food-delivery platforms see robust growth as shoppers tighten other budgets
DoorDash, Uber Eats and Instacart reported strong sales gains despite overall consumer spending slowing, showing continued appetite for paid delivery services.
Quarterly results released this month revealed that DoorDash, Uber Eats and Instacart all achieved solid sales growth, a trend that even surprised DoorDash CEO Tony Xu. The surge comes as broader consumer spending shows caution, highlighted by Walmart's slowest comparable-sales growth since 2020 and a 0.6% decline in U.S. retail sales for July. Fast-food competitors such as Burger King and Chili's have also posted gains, helped by budget-friendly meal promotions.
DoorDash's CFO Ravi Inukonda noted the company's expansion into new stores, regional grocery partners and the ability to order Kroger items with SNAP benefits. Customers, including those with disabilities or limited transportation, say the convenience and perceived cost-effectiveness of delivery outweigh the extra fees, with some relying on subscription services like DashPass and Walmart+ to lower costs.
Why it matters
The story shows how delivery apps are thriving even as overall consumer spending tightens, reshaping retail and dining habits.
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