With consumer spending slowing down, DoorDash is hoping to entice people to keep spending on takeout and other goods with its first credit card.
"Whether it's 32 million users of DoorDash or 15 million DashPass subscribers, even a small fraction of that adopt and are going to be saving hundreds of dollars — we're talking billions of dollars back in the pockets of our consumers — that's one thing that gets us really excited," Keith Yandell, DoorDash chief business officer, told Cheddar News.
Though many in the retail space have warned that people are spending less, DoorDash has been beating analyst expectations on spending. During its most recent earnings report, the company beat the Street's estimates on revenue and provided projections for gross value order that would top expectations for the upcoming quarter.
"Last year this time, I got a bunch of questions about what's going to happen post-pandemic," Yandell said. "Are people still going to use these services that have really become utilities, services like DoorDash? What we saw, in the post-pandemic timeframe that we continue to see in the inflationary time period, is the demand is pretty sticky."
Yandell credited DoorDash with continuing to improve the quality, selection, and price as to why people are still ordering. It added more than 100,000 non-restaurant merchants, ranging from pet products to beauty items, to add convenience, and made other changes to speed up deliveries.
But at the end of the day, users are worried about price especially in budget-conscious times. DoorDash transaction fees went down 8 percent in 2022, and the company wants to continue to lower them.
The new credit card, which was launched in partnership with Chase and Mastercard, is part of the plan to make things more affordable, Yandell said. It offers 4 percent cash back on DoorDash and caviar orders, as well as 3 percent back on other restaurant purchases. Users will also get 2 percent back on groceries, and 1 percent on all other purchases. In addition, card users who spend $10,000 will get a free subscription to DashPass, the company's discount subscription service.
"The goal is ultimately to get to zero (fees), and that's not going to happen overnight," he said. "But we're going piece by piece, trying to make the platform as efficient as possible."
The Rev. Al Sharpton is set to lead a protest march on Wall Street to urge corporate America to resist the Trump administration’s campaign to roll back diversity, equity and inclusion initiatives. The New York civil rights leader will join clergy, labor and community leaders Thursday in a demonstration through Manhattan’s Financial District that’s timed with the anniversary of the Civil Rights-era March on Washington in 1963. Sharpton called DEI the “civil rights fight of our generation." He and other Black leaders have called for boycotting American retailers that scaled backed policies and programs aimed at bolstering diversity and reducing discrimination in their ranks.
President Donald Trump's administration last month awarded a $1.2 billion contract to build and operate what's expected to become the nation’s largest immigration detention complex to a tiny Virginia firm with no experience running correction facilities.
Chipmaker Nvidia is poised to release a quarterly report that could provide a better sense of whether the stock market has been riding an overhyped artificial intelligence bubble or is being propelled by a technological boom that’s still gathering momentum.
Cracker Barrel said late Tuesday it’s returning to its old logo after critics — including President Donald Trump — protested the company’s plan to modernize.
Low-value imports are losing their duty-free status in the U.S. this week as part of President Donald Trump's agenda for making the nation less dependent on foreign goods. A widely used customs exemption for international shipments worth $800 or less is set to end starting on Friday. Trump already ended the “de minimis” rule for inexpensive items sent from China and Hong Kong, but having to pay import taxes on small parcels from everywhere else likely will be a big change for some small businesses and online shoppers. Purchases that previously entered the U.S. without needing to clear customs will be subject to the origin country’s tariff rate, which can range from 10% to 50%.
Southwest Airlines will soon require plus-size travelers to pay for an extra seat in advance if they can't fit within the armrests of one seat. This change is part of several updates the airline is making. The new rule starts on Jan. 27, the same day Southwest begins assigning seats. Currently, plus-size passengers can pay for an extra seat in advance and later get a refund, or request a free extra seat at the airport. Under the new policy, refunds are still possible but not guaranteed. Southwest said in a statement it is updating policies to prepare for assigned seating next year.
Cracker Barrel is sticking with its new logo. For now. But the chain is also apologizing to fans who were angered when the change was announced last week.
Elon Musk on Monday targeted Apple and OpenAI in an antitrust lawsuit alleging that the iPhone maker and the ChatGPT maker are teaming up to thwart competition in artificial intelligence.
