DoorDash CEO Tony Xu took aim at Amazon during the last-mile delivery company’s fourth-quarter earnings call Wednesday afternoon.
Xu said DoorDash offers something Amazon cannot in grocery delivery: A strong network of grocers that gives shoppers more choice. Late last year, DoorDash announced it would use its new DashMart Fulfillment Services to deliver products for Kroger. DashMarts process orders, and Xu said during the call that DoorDash provides the service to every grocer so they can compete with companies like Amazon.
Xu also said DoorDash users are placing more large grocery orders. DoorDash CFO Ravi Inukonda said the company expects its retail and grocery business to become profitable in the second half of the year.
The news was not entirely positive for DoorDash. The company missed Wall Street’s fourth-quarter revenue estimates, reporting $3.96 billion compared with expectations of $3.99 billion. It also issued weaker-than-expected first-quarter guidance.
DoorDash has made a heavy investment in tech and in December announced users could use ChatGPT when ordering on its app. The company is also running a pilot with Waymo involving autonomous vehicle deliveries in Phoenix.
Amazon has adjusted its grocery and convenience strategies in recent weeks. In early February, the delivery giant announced it would close all Amazon Fresh and Amazon Go locations to focus more on its Whole Foods Market brand and same-day grocery delivery. The company plans to open supercenters with fulfillment centers for delivery orders and has plans for a warehouse location outside Chicago that would sell both Amazon products and groceries, similar to Costco or Sam’s Club.
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