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DoorDash Warns Delivery Fee Caps Will Weigh on Results

  • Revenue beat estimates in fourth quarter; losses doubled
  • Benefits from pandemic may start to fade as restaurants open
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Restaurants Struggling to Survive Try to Fight Mobile Delivery Fees
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DoorDash Inc. reported fourth-quarter revenue that beat analysts’ estimates, reflecting a surge in Covid-19 cases and restrictions that fueled demand for food delivery at the end of last year. But the company said price controls intended to limit the fees it can charge restaurants will weigh on results in the current period. The shares were down 4.6% Friday morning in New York.

While DoorDash helped many restaurants stay afloat as pandemic lockdowns forced them into a takeout-only model, the fees that it charges, which can be as much as 30%, have been limited by jurisdictions including New York and Seattle. DoorDash was operating with such price controls in 73 jurisdictions at the end of last year, up from 32 at the end of the third quarter, the company said in a letter to shareholders.