Tech

'We eat three times a day' — DoorDash CEO says each meal is a chance to deliver, even post-Covid

Key Points
  • DoorDash still sees opportunities to deliver as pandemic safety measures wane and more people start frequenting restaurants, chief executive Tony Xu told CNBC on Thursday.
  • "After all, we eat three times a day. That's over 100 shopping occasions a month," he said.
  • Xu said there is yet another activity on DoorDash that pairs well with post-Covid lifestyle changes —  getting groceries delivered.
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DoorDash CEO Tony Xu discusses earnings beat as shares surge as much as 20%

DoorDash still sees opportunities to deliver as Covid pandemic safety measures wane and more people start frequenting restaurants, chief executive Tony Xu told CNBC on Thursday.

"I think we're all ready and excited if we're not already, mingling in the real world. At the same time, I think what the resiliency of the numbers we just announced in the fourth quarter shows is just how complementary the activities are," Xu said on "Squawk on the Street."

"After all, we eat three times a day. That's over 100 shopping occasions a month. And so, when I think about how many shots on goal there are, there just are a lot of moments to capture," he added.

DoorDash reported a record high number of orders and better-than-expected revenue in its fourth quarter results after the bell Wednesday. The delivery platform's stock skyrocketed as much as 21% on Thursday. The strong sales numbers are on trend with DoorDash's growth since March 2020, when shuttered eateries across the country turned to delivery and takeout platforms to survive.

Xu said there is yet another activity on DoorDash that pairs well with post-pandemic lifestyle changes —  getting groceries delivered.

Noting that DoorDash covers "more zip codes than even the postal service does," the chief executive said the delivery service currently sees "tremendous demand" in local retail deliveries including grocery, pet food and alcohol. He added that 14% of DoorDash's customers are trying out these services.

"There is actual demand, just like as people are going back inside stores, there's still the complementary activity of shopping online and getting things delivered, especially when they can get that convenience during the middle of the week," Xu said.

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