DoorDash's Q2 2025: Contradictions in Affordability Initiatives, Market Penetration, and Ad Revenue Growth

U.S. Marketplace Order Growth:
- DoorDash reported accelerated order growth in the U.S. marketplace, with increased strength in restaurants driven by DashPass membership growth and frequency uptick.
- This growth was attributed to improvements in product personalization and faster delivery, as well as enhancements in the DashPass membership program.

Ad Revenue Expansion:
- The company's advertising revenue exceeded $1 billion in annualized run rate, with a significant increase in merchants and consumers engaging with on-platform and off-site ads.
- This expansion is driven by the disciplined focus on achieving the best consumer experience and building a successful return on ad spend product.

Impact of AI on Product and Operations:
- DoorDash is leveraging AI models to enhance search, personalization, and operational efficiency, with plans to rethink and optimize various business processes.
- The integration of AI aims to improve the consumer product, streamline physical world activities, and increase productivity in engineering teams.

New Verticals and Retail Growth:
- The new verticals segment, including grocery and convenience, grew faster than the core restaurant business, with increased selection, quality, and affordability.
- This growth is supported by both new and existing cohorts engaging more frequently with the platform, indicating strong retention and order frequency.

International Market Performance:
- DoorDash's international business achieved record MAUs and all-time high order frequency, showing strong growth in user acquisition and retention.
- The improvement in unit economics and the introduction of new verticals, particularly Wolt+, have contributed to this positive performance.