It now offers delivery from 390,000 merchants in the U.S., Canada and Australia. Powering that service are 1 million independent delivery drivers.
DoorDash was already growing before the pandemic thanks to customers’ growing preference for dining at home. Its revenue more than tripled to $885 million between 2018 and 2019.
But lockdown orders and the closure of indoor dining have made DoorDash indispensable for many restaurants and diners this year. DoorDash reported revenue of $1.9 billion in the first nine months of 2020 alone.
DoorDash pulled ahead of its rivals by focusing on suburbs and smaller cities. It now controls 50% of the U.S. food delivery market. Its chief rival, Uber Eats, controls 26%, while GrubHub controls 16%.
Despite its market dominance, DoorDash has yet to post an annual profit. It had a net loss of $667 million in 2019 and lost $149 million in the first nine months of 2020. The company did turn a profit of $23 million in the second quarter this year, but followed that with a $43 million loss in the third quarter.
In federal filings, DoorDash warned that its sales growth may not continue at the same pace once the pandemic subsides.