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."
Nvidia on Wednesday became the first public company to reach a market capitalization of $5 trillion. The ravenous appetite for the Silicon Valley company’s chips is the main reason that the company’s stock price has increased so rapidly since early 2023.
Chris Williamson, Chief Business Economist at S&P Global, breaks down September’s CPI print and inflation trends, explaining what it means for markets.
A big-screen adaptation of the anime “Chainsaw Man” has topped the North American box office, beating a Springsteen biopic and “Black Phone 2.” The movie earned $17.25 million in the U.S. and Canada this weekend. “Black Phone 2” fell to second place with $13 million. Two new releases, the rom-com “Regretting You” and “Springsteen — Deliver Me From Nowhere,” earned $12.85 million and $9.1 million, respectively. “Chainsaw Man – The Movie: Reze Arc” is based on the manga series about a demon hunter. It's another win for Sony-owned Crunchyroll, which also released a “Demon Slayer” film last month that debuted to a record $70 million.
The Federal Aviation Administration says flights departing for Los Angeles International Airport were halted briefly due to a staffing shortage at a Southern California air traffic facility. The FAA issued a temporary ground stop at one of the world’s busiest airports on Sunday morning soon after U.S. Transportation Secretary Sean Duffy predicted that travelers would see more flights delayed as the nation’s air traffic controllers work without pay during the federal government shutdown. The hold on planes taking off for LAX lasted an hour and 45 minutes and didn't appear to cause continued problems. The FAA said staffing shortages also delayed planes headed to Washington, Chicago and Newark, New Jersey on Sunday.
Boeing workers at three Midwest plants where military aircraft and weapons are developed have voted to reject the company’s latest contract offer and to continue a strike that started almost three months ago. The strike by about 3,200 machinists at the plants in the Missouri cities of St. Louis and St. Charles, and in Mascoutah, Illinois, is smaller in scale than a walkout last year by 33,000 Boeing workers who assemble commercial jetliners. The president of the International Association of Machinists says Sunday's outcome shows Boeing hasn't adequately addressed wages and retirement benefits. Boeing says Sunday's vote was close with 51% of union members opposing the revised offer.
