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· Posted on
February 21, 2024

Doordash has laid off 1,250 staff as another big food delivery company feels the burn

Like many food delivery companies, Doordash needed to rein in costs over the past few months... to it had to lay off 6 per cent of its workforce.

What's the key learning?

  • Doordash is the largest food delivery company in the US with more than 56% of the market, but it wasn't exempted from the list of food delivery companies that needed to rein in costs over the past few months.
  • Doordash made the decision to lay off 6 percent (1,250) of its staff and the CEO said its first goal was to reduce its non-headcount operational expenses, which, alone wouldn't close the gap.
  • Operating expenses are the ones that a company needs to maintain to perform its regular business activities while non-operating expenses refer to those that aren't directly related to core, day-to-day company operations.

👉 Background: While Doordash only entered the Australian market in 2019, it has made a major splash in the US since 2013. In fact, DoorDash is the largest food delivery company in the US with more than 56% of the market.

👉 What happened: But like many food delivery companies, Doordash has needed to rein in costs over the past few months so it made the decision to lay off 6 per cent of its workforce.

👉 What else: The CEO said that its first goal was to reduce its non-headcount operational expenses.. But that alone wouldn’t close the gap.

What's the key learning?

💡 There are two main expenses on a company's profit and loss statement that cover all the wonderful company expenses.

💡We've got the operating expenses. These are all the expenses that a company needs to maintain to perform its regular business activities. Think: marketing costs, office supplies, rent and of course wages.

💡We've also got the non-operating expenses. These are the expenses that aren't directly related to core, day-to-day company operations. Think: interest payments, one-off costs or asset write downs.

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