(February 17): On Wednesday, DoorDash Inc announced quarterly revenue that above expectations as meal delivery demand showed no signs of waning, signalling that ordering patterns have permanently altered, driving the company’s shares up 24 percent after the bell.

According to analysts, consumers have become accustomed to having meals delivered to their doorsteps after often ordering in at the pandemic’s peak. They anticipate that DoorDash, as well as competitors Uber Eats and Grubhub, will continue to grow rapidly for several years, even as consumers eat out more frequently.

Uber’s stock jumped 1%, while Grubhub parent Just Eat Takeaway.com NV’s stock rose 2% on the New York Stock Exchange.

“It’s extremely easy to dine at a restaurant and get delivery since we eat three times or more per day, and that’s over 100 shopping occasions each month,” CEO Tony Xu said during an earnings call.

According to IBES statistics from Refinitiv, higher-than-expected consumer retention and new customer growth helped DoorDash’s revenue soar 34% to $1.30 billion in the fourth quarter ended Dec. 31, above predictions of $1.28 billion.

“To the degree that pent-up demand for eating in eats into income, it would only serve to moderate some growth briefly, rather than reverse it for lengthy periods,” said Guru Hariharan, CEO of e-commerce management platform CommerceIQ.

Located in San Francisco DoorDash also expects first-quarter marketplace gross order value, which includes all app orders and membership fees, to be between $11.4 billion and $11.8 billion, up from $11.2 billion in the previous quarter.

Consumers’ ongoing willingness to pay for the convenience of delivery, even in the face of inflation, should underpin demand, according to M Science analyst Matthew Goodman.

To entice more people, DoorDash has increased its focus on non-restaurant services such as grocery, pet food, and alcohol. It has partnerships with several businesses, including Ulta Beauty, Bed Bath & Beyond, and PetSmart.

DoorDash also forecasts core earnings for fiscal 2022 in the range of break-even to $500 million, compared to predictions of $455.1 million.

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