DoorDash, Inc. Q3 FY2025 earnings call

Tony Xu and Ravi Inukonda discussed various aspects. They talked about investing in building a new global tech platform to create a single global tech stack, make it AI native, and expect faster product shipping and efficiency gains. They also highlighted investing in new products like in-store initiatives, DoorDash Dot autonomous delivery vehicle, and DashMart Fulfillment Services. Ravi mentioned the core business is doing well with growth accelerating, unit economics improving, and EBITDA margin for the existing business (excluding Deliveroo) expected to be up slightly in 2026. They emphasized disciplined reinvestment to extend growth duration and drive strong IRRs.

Ravi Inukonda stated that the EBITDA margin for the existing business, including investments (excluding Deliveroo), is expected to be slightly up compared to 2025.

Q: Two-part question on several hundred millions of incremental investments for 2026. How much towards tech platform vs product expansion and details on tech platform efforts including AI.

A: Tony Xu said they're investing in 3 areas: building a new global tech platform to create a single global stack, make it AI native, and expect efficiency gains; investing in new products like in-store initiatives, DoorDash Dot, and DashMart Fulfillment Services. Ravi added the core business is growing, and EBITDA margin for existing business (excluding Deliveroo) is expected to be up slightly in 2026.

Q: Talk about investing in Deliveroo, goals for first year and automation expansion.

A: Tony said they're focused on improving Deliveroo's product to be best-in-class, and on automation, they'll be pragmatic, testing in one market, and 2026 will be year to commercialize some efforts. Ravi added focus on improving product, consumer experience, and driving long-term free cash flow in Deliveroo.

Q: Broader consolidation in Europe, clarity on Deliveroo investment minutia.

A: Tony said they see opportunity to be leading local commerce platform in Europe, and Ravi explained $200 million EBITDA from Deliveroo is from investments in product and team.

Q: Thoughts on tech platform learned, integration of Roo, U.S. restaurants unit economics flat.

A: Tony said tech platform work started in 2025, will take shape in 2026. On Roo integration, they're making extra tech investments to protect experience. Ravi said U.S. restaurant business is doing well with growing unit economics.

Q: Advertising broadly, workers and government crackdown.

A: Tony said ads business is growing, with focus on balancing advertiser return and consumer experience. On workers, Dasher supply is healthy, and they uphold high standards.

Q: Incremental step-up cost, DashMart Fulfillment Services details.

A: Ravi said they're early in planning, and Tony explained tech investments go up in 2026 due to architecting and deploying new software, and DashMart Fulfillment Services aims to give near-perfect accuracy for retailers.

Q: New verticals path to breakeven, U.S. growth pockets.

A: Ravi said new verticals are growing fast, unit economics improving. Tony said U.S. growth is from maniacal focus on improving experience inputs.

Q: Investment commentary clarification, new verticals categories.

A: Ravi said spend is across P&L, and Tony said they're seeing growth in multiple categories outside grocery and convenience.

Q: DashMart Fulfillment Services plan, timeline.

A: Tony said it depends on retailer, with different goals, and they're customizing solutions for retailers.

Q: Amazon in perishables, New York elections impact.

A: Tony said market is competitive, but DoorDash continues to grow. On elections, he believes governments and businesses should work together for best outcomes.

Q: Deliveroo synergies, accounting differences.

A: Ravi said focus is on improving product and consumer experience, with cost synergies from scale and cost redundancy, and accounting difference of $8-10 million impact on EBITDA.

Q: Investments payback period, retail investment.

A: Tony said payback period bar is same, with more projects finding product market fit. Ravi said software has shorter payback, but core philosophy remains.

Q: Grocery grocers moving faster, dining out experience.

A: Tony said grocers are recognizing DoorDash's leadership, and Going Out is to introduce customers to restaurants and build loyalty.

Q: Roo product improvement, U.S. restaurants unit economics.

A: Tony said they'll apply lessons from experiments to Roo, and Ravi said U.S. restaurant business is growing with good unit economics