, though, growth is slowing in a big way. DoorDash’s third quarter revenue grew 45% year on year, slowing from 70% growth in the second quarter and 222% in the first.
But they may be missing the bigger point. The magnitude of the acquisition suggests just how important international growth is for DoorDash to continue to justify its pandemic run. Back in February, DoorDash fetched an all-time high multiple, with an enterprise value of more than 18 times forward sales. That came on the heels of a year where the company grew quarterly revenue an average of 220% year-over-year. But consumers can’t stomach that kind of growth forever. For the fourth quarter, Wall Street is projecting that DoorDash will grow sales by just under 27%—its slowest quarter of growth as a public company.
Meanwhile, there are only so many Americans DoorDash can reasonably hope to reach. Its customers are spending roughly $70 a week on its app, according to Bloomberg Second Measure data—roughly 72% of the average American household’s weekly grocery bill. On DoorDash, including fees, $70 isn’t likely to buy even a two-person family much more than one or two meals. For most Americans, the math doesn’t add up to make regular food ordering sustainable.
DoubleLJSquared $2-$5 per delivery from DoorDash. Only good customers make it worthwhile. Anyone tipping under $5 needs to get off their ass & go get their onion rings