DoorDash attributes Q1 sales growth to stimulus checks

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Despite the fact that restaurants were reopening for indoor dining, DoorDash still managed to see its sales increase in the first quarter. 

The delivery company on Thursday released its earnings report, which showed that revenue grew to $1.1 billion, a 198% year-over-year increase. The company also saw its total orders grow by 219% to 329 million. 

In a statement, the company said that sales growth — even as coronavirus restrictions eased — may be attributed to federal stimulus checks.

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"As markets continued reopening and in-store dining increased across the U.S., the impact to our order volume was smaller than we expected, which contributed to strong performance in the quarter," the company said in a statement. "We believe stimulus checks were partially responsible for this, as their issuance increased consumer demand on our platform at the same time as in-store dining rates accelerated in many markets."

DoorDash released its first-quarter earnings on Thursday. The company attributed its sales growth to stimulus checks, despite easing coronavirus restrictions. (AP Photo)

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However, stimulus checks also made it difficult for DoorDash to attract more freelance drivers in the latter half of the quarter, the company said. 

"Stimulus checks created a particularly acute challenge, as we believe they drove a short-term increase in consumer demand and a simultaneous decrease in Dasher hours," the company said.

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DoorDash also said that it expects to see consumer behavior change in the summer months when order rates tend to slow.

"We expect the combination of summer seasonality, market reopenings, and the waning impact of stimulus to result in some impact to our business in the near term," the company said. "Nonetheless, we are encouraged by the consumer behavior we have observed thus far and are more optimistic with regard to our full-year prospects than we were at the beginning of the year."

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Other competing delivery services saw strong demand in the first quarter. Uber Eats said last week that its sales increased 166% in the first quarter, while Grubhub saw a 52% sales increase during the same time.

The Associated Press contributed to this report.

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