San Francisco-based delivery company DoorDash is planning to expand further into retail and grocery in 2024, CEO Tony Xu said in a recent Financial Times article.
The article noted that DoorDash reported $878 million of free cash flow for the 12 months ending in September, positioning the company for growth over the next year.
Xu told the Financial Times that DoorDash is keeping the bar high for acquisitions and will not “invest in inefficient growth.”
“We’re not investing into every single project at the maybe levels that we like . . . but we’re always looking to reinvest,” Xu said.
Citing YipitData, the article noted that DoorDash currently holds a commanding 59% of the U.S. restaurant delivery market. That puts the company in a strong position to move further into grocery and retail, according to Xu.
“If you already have a large consumer base, and a large driver base that is interacting with you many times a week, you just have more shots on goal to be able to launch into these adjacent categories,” Xu told the Financial Times, adding that the company “went from zero to a multibillion-dollar business” for deliveries outside of the restaurant space.
