Meal delivery company DoorDash expects consumer demand to decline in the second half of this year after the introduction of vaccines that will encourage people to go out to restaurants and cafes after nearly a year of confinement.
As the company’s shares fell 12% in extended trading, coinciding with announcing a larger quarterly loss than its predecessor in the first results published by DoorDash as a public company after its giant initial public offering last December.
The company has seen a volatility in sales with increasing consumer demands for meals and groceries online at a time when the government imposed restrictions on the movements of individuals and forced them to stay at home for fear of the spread of the virus.
DoorDash added that the introduction of vaccines and the return of consumers to stores will occur during the second and third quarters of this year, which are considered the most flexible for the company.
DoorDash expects total orders in 2021 to be $30-33 billion and for the current quarter to be $8.6-$9.1 billion.
According to the results of the last quarter ending on December 31, the value of orders increased by 227% to reach $ 8.2 billion, and revenues for the fourth quarter more than tripled to reach $ 970 million, but the company’s net loss increased from $134 million to $312 million compared to the same period last year.
Adjusted EBITDA (the so-called EBITDA) is expected to be hit in the current first quarter, primarily affected by increased fees collected from restaurants and the implementation of Proposition 22, a law that classifies the company’s drivers as contractors.