DoorDash Inc (NYSE:DASH) plans to diversify its offering by expanding outside of its core restaurant food delivery business, the company’s CEO Tony Xu was quoted as saying.
In an interview with the Financial Times, Xu said: “The two largest areas of investment are expansion and penetration outside of the US, as well as the same outside of restaurants.”
Like other delivery services such as Deliveroo and Uber, DoorDash is set to expand its retail and grocery delivery offering.
“If you already have a large consumer base and a large driver base that is interacting with you many times a week, you just have more shots on goal to be able to launch into these adjacent categories,” Xu told the publication.
Acquisitions are not out of the question to support DoorDash’s growth ambitions but the company has a “high bar” for potential targets, Xu was quoted as saying.
“We’re not going to invest behind inefficient growth,” the CEO said. “We’re not investing into every single project at the maybe levels that we like... but we’re always looking to reinvest.”
DoorDash shares traded lower in pre-market trade on Tuesday, down 1.3% at US$97.65.