DoorDash’s latest financial results show the 12-year-old company dominating the US restaurant delivery market, owning around two-thirds of the space. Its move into suburban areas during the COVID-19 pandemic was a key factor in its success. As a result, DoorDash’s stock price has surged to over $250 per share and its market cap now exceeds $108 billion.
The company’s strong performance is largely due to its investments and acquisitions. In May, it announced plans to acquire Deliveroo for nearly $4 billion, which would give it a top-three meal delivery business in the UK. It also acquired hospitality software company SevenRooms for $1.2 billion. These deals aim to turn DoorDash’s core restaurant delivery operation into a global one.
Additionally, DoorDash has made significant investments in its advertising technology and expanded its partnerships with retailers across various categories. The company’s ad business has reportedly crossed $1 billion in annualized revenue in 2024, with analysts estimating it carries a higher profit margin than its core delivery business.
DoorDash’s ambitious vision is to become a comprehensive technology player for restaurants and brick-and-mortar retailers globally. While this may be a bold move, the company still has potential for growth within its core restaurant delivery business, particularly in global markets. CEO Tony Xu noted that DoorDash currently only captures single-digit percentages of US restaurant industry sales, leaving room for expansion.
Source: https://fortune.com/2025/08/06/doordash-food-delivery-acquisitions-business-expansion-tony-xu-earnings