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00:00All right. Thank you so much for joining us. Great to have you on the show. Obviously food delivery clearly didn't slow down this quarter despite cities reopening restaurants reopening. Why do you think that is. Hi Emily and thank you for inviting me. We saw encouraging trends in Q1 in fact as markets reopened and ISE as in-store dining grew. The negative impact of consumer behavior that we were initially anticipating was actually better than anticipated. And I think the reason for that is because consumer behavior tends to be sticky. So when new habits are formed consumers have downloaded the app they start using it and those habits persist. And part of the reason for that is because the product has gotten would dearly better over the course of the past year. There's more restaurants in the platform. The delivery times are good and that's helped us keep consumers around and come back to the platform. Well I am a huge Jordache customer so I have seen the improvements in the product. Wonderful customer service. The question is does this keep up as the world truly opens up the country truly opens up and people get more comfortable especially with the new guidance from the CDC that vaccinated people can drop masks indoors. Yeah I'm actually so excited about that because you know we're rooting for restaurants and we're excited for them to succeed. What we're seeing is these two things can coexist because people want to go back into the restaurants. But they also twenty five times you eat during the week and not all of those are going to be in the restaurant. Some of them are going to be delivered at home. Some of those are going to be picked up on your way back to work. Some of them are gonna be catered food at lunch when you're in the office. And so what we're attempting to engage the consumer across all of these different use cases in order to ensure that that week we keep consumer behavior robust even as the markets reopen in restaurants. What'd You Miss? and verticals are you seeing the most growth. And can you give us any color on where the growth is coming from. City suburb. What kinds of restaurants any more you can sell for. I mean actually we're seeing growth across the board. I mean when you grow your your topline by two hundred twenty two percent it's not usually one area or another. And what's what's driving that is we're very early innings in terms of the penetration of these categories. So even if you take all of the food delivery platforms across the space you know just as a percentage of overall food sales we're talking about a smaller percentage or fraction into the overall food sales across the industry. When you look at convenience which is another large category that we launched about a year ago that's a two hundred and fifty billion dollar industry. Online convenience sales are getting a tiny fraction less than 1 percent according to third party data grocery. Same dynamic. So what you're seeing is given the low levels of penetration there's a lot of room for ourselves and others in the space to grow. And that's what's driving the growth that you've seen in this past quarter. So let's talk about grocery Wilbur's partnership a go but go pop. Obviously insta cart gaining share of groceries seems to be the next frontier. How are you preparing to take on the competition. And you know the first thing I should say is we're very early in the grocery journey. That business was launched six months ago. But let me point to a parallel. We've got our convenience business those launched twelve months ago much after some of the other names that you that you mentioned. And even in that short duration of twelve months we've quickly become the number one leader in online convenience of going to third party data. And what's with that speaks to is the extensive ability of our platform the size of the consumer base. We have amassed our ability to engage those consumers in categories beyond food. And that's what's enabled us to drive our growth and and be a market leader and community. And I'm confident that if we continue to build a product that meets consumer expectations of speed and quality and price we'll be successful in grocery as well as well as the other verticals we add. My Door Dash app often asks me if I want to pick up from 7-Eleven after I have to place an order. How popular is that. People often taking you up on that offer. It's very early. We actually just launched it a few months ago but we're excited by the initial results that we've seen. In fact you know from from your perspective from consumer's perspective there's no reason you should actually should be concerned about which store something comes from. In fact I was talking to somebody the other day that ordered a cake for Mother's Day and they wanted to buy a bouquet of flowers you know in this consumer didn't gather the flowers came from a different store than the cake. And so our product now allows you to mix and match across these different stores. And it's early and we're excited by the prospects. So there's still this looming risk about the reclassification of workers. We don't know what position by the administration is going to take on this. How concerned are you about that knowing that it could go in a direction that doesn't necessarily help for DAX. Yeah I think it's important to take a step back from the initial headlines that even Secretary Walsh said were perhaps taken a little far. In fact when you when you read the comments based on our discussions with the Department of Labor and the Biden administration. Encouraged by what we're hearing because it signals a willingness on the part of the Department of Labor to engage with the private sector domain a mutually acceptable solution to this important issue going forward. And so you know it's important I reiterate that we will always advocate for Dash's want. And what they tell us is that the number one thing they get about is is flexibility paired with the benefits and protections they deserve. And so we're excited to engage with the deal. Well in the Biden administration's issue. And hopefully we'll have an update to this matter in the future. All right. So clearly grocery is a big potential future area. What other categories can reasonable X or are you explain. Our mission is to enable all forms of local commerce. And so what that means is anything any stores that exist in your community. We want to bring those to your doorstep. We started with the restaurant category. We expanded the convenience. We're now expanding to grocery. We're in our garden. And so think of the range of of stores that you might go to. And over a long enough horizon hopefully you'll get all of those through dish. Meantime you know I know you're also working to support and continue to improve your relationship with restaurants. Can you tell us a little bit more about the three tiered pricing structure and how that's working. Sure. Sure. I mean maybe the first thing I should say is we consider ourselves much first company. So we spend a lot of time talking to our merchants to understand what they want from Doordarshan how we can support them better. And the number one thing we were hearing pretty last year was the fact that merchants were often it was unclear to them exactly what we were providing a different commission price points. And so the objectives behind the pricing packages is to provide enhanced transparency choice and flexibility in order to allow a merchant to choose the backers that best serves their needs. So for a merchant that's trying to optimize for growth you know a certain package of more marketing support might be more appropriate. What's the merchant that's optimizing for profitability. So we've gotten great feedback. We we just DAX this for six months. We launched these these packages in April. And and so far the the the the feedback has been quite positive.

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Food Delivery Services Are Here to Stay: DoorDash CFO

DoorDash CFO Prabir Adarkar discusses the company's successful Q1 earnings as people continue to use food delivery services despite the growing number of restaurants reopening for indoor dining. He also talks about DoorDash competing with delivery services like Uber Eats and Instacart, and how the possibility of reclassifying workers may affect the company. He speaks with Emily Chang on "Bloomberg Technology." (Source: Bloomberg)

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