DoorDash (DASH) Q2 2026 earnings call transcript

I will now hand the call over to West End Twig. Please go ahead. Thanks, Connor. Good afternoon, everyone, and thanks for joining us for our Q2-2026 earnings call. I'm pleased to be joined today by co-founder, chair, and CEO, Tony Xu, and CFO, Robbie, and the Conda. We'll be making forward-looking statements during today's call, including without limitation, our expectations for our business, financial position, operating performance, pocketability, our guided strategies, capital allocation approach, and broader economic environment.

Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those described. Many of these uncertainties are described in our SEC findings, including our most recent one, 10K and 10K. You should not rely on forward-looking statements as predictions of future events or performance. We disclaim any obligation to update any forward-looking statements except as required level. During this call, we will discuss certain non-gapped financial measures. Information regarding our non-gapped financial measures, including the reconciliation of such non-gapped measures to the most directly comparable gap financial measures, may be found in our earnings releases which is available on our investor relations website at ir. dordash. com. These non-gapped measures should be considered in addition to our gap results, and they're not intended to be a substitute for our gap results.

Finally, this call is being audio-webcasted on our investor relations website. An audio replay of the call will be available on our website shortly after the call ends. Operator, I'll pass it back to you if you take our first question.

Yeah, hey, Michael. It's Tony. I can start. And feel free to chime in, Robbie. You know, what I would say is like we see extremely strong performance in our grocery business. It's the best growing part of our marketplace business, and we have very healthy relationships with all of the partners on the platform. I mean, in terms of the economic relationships, I'm not going to really comment about, you know, anyone in particular. I mean, what I will say is that when you are the fastest grower in the market for them and you are their source of growth, you know, you know, put a different way, we might be a hundred percent of the growth that they see in terms of their actual business.

You certainly, you know, have opportunities to grow your business with them as well as improve, you know, your relationships with them. I mean, I think if you look at, you know, our business as a whole, I think one of the things you see from, you know, this quarter, and frankly, you know, I think many of the time periods leading up to now is that there are many sources of improving economics. We have improving unit economics across all of our categories. You have improving unit economics in our restaurant business too. You have improving unit economics in our different geographies in which we operate. You have increasing adoption of our dash pass program as well as, you know, accelerating growth in our app business.

And I think when you add all of that in, you know, we have a business in which there are many leavers in which we can control, you know, the kind of financial profile in order to make great investments. You know, ultimately, we're here always seeking the next best investment. It doesn't mean that we always make those investments, but when we see the opportunity, we're always leaning in that includes, you know, all of the work that we're doing in grocery, which we think there's a long runway, as well as all the other opportunities in front of us.

It might just to add, right? Like, look, I mean, if you take a step back and think about our overall grocery business as well as new verticals, we talked about the fact that we became order volume share leadership in Q4. We continue to extend that lead to when you look at the underline, we talk about the fact in leather that basket sizes are growing. If you look at our historic cohorts, consumers are using us for more use cases, which is driving overall basket sizes higher.

Last quality, I mentioned the fact that we expect our overall new vertical business to be growth profit positive. We're on track for that in the second half of the year. Look, I mean, we think about the business as a whole. We think about, you know, retention, order frequency, as well as underline improvement in unit economics, and they're all headed in the right direction for us.

Hey, it's Tony. I can start. You know, what I would say on, you know, Deliveroo is it really is a story that probably started way back in 2021. You know, when we first made our first large acquisition overseas, which was with Volt, and we've learned a ton, obviously about building our own U. S. business. And we've learned a lot in terms of how Volt has operated in different geographies across Europe, as well as how to integrate, you know, the lessons that we've learned, as well as the lessons that maybe don't apply into each one of these local geographies. So what you're seeing in Deliveroo, I agree with you, Mark, is just accelerating performance, you know, frankly, across the board.

And that's super exciting because, you know, I think, a, it's validation that our integration work is really working. And that the lessons that we've learned in building these marketplace businesses around the world do translate into some of these, you know, meaningful geographies and foundational places where, you know, we're just seeing, you know, growth in all of our big international markets.

And this doesn't even include, you know, the majority of benefits that we expect to see once we actually finish all of our work on building a single tech stack. So, you know, as that work kind of, you know, comes more fully online toward the beginning of next year, you know, we expect to see even more benefits as time goes on.

And Mark, just to put a final point, right? Like, when you look at the actual performance of Deliveroo itself to your point, volume growth or M. A. U. growth or subscription growth, actually, when you look at it on a year over year basis, it's been the highest that we've seen in the last couple of years. At the same point to your second part, part of your question, we've increased the unit economics as well, but the way in which we're operating the business is very similar, right? So finding great opportunities to drive investment back in selection, quality subscription is a big area of focus for us. So we're going to continue to invest back in the business, and my expectation is we'll continue to drive higher top line, as well as meet the profitability targets that we set out, you know, in the last letter.

Yeah. Hey, Nikhil, it's Tony. I can start. I think there are a couple of different questions that you're asking. And, you know, the first is really what do we see happening internationally? You know, our aspiration is to be the global leader in local commerce. And, you know, we think we're best positioned to do that, given that we bring the deepest and the broadest portfolio products in order to serve those audiences.

But like you said, it's a game that is played locally. You know, there are no global network effects in these kinds of businesses. And, you know, one of the points you raised is the right one where, you know, sometimes there isn't an obvious tie between, you know, the market position and, you know, kind of your economic profile.

And that's because it is a minimum viable scale business. You know, that said, though, when I actually look at our current execution, you know, the vast majority of our international business is concentrated in our top 10 markets outside of the US. And in those markets, we are the leader, or we are a very strong number two and we're gaining share in all of the markets, you know, some of these markets include places like the UK, Italy, Germany, the Nordics, Israel, Canada. I mean, I can keep going. But we like kind of what we see. And it kind of really is a follow on to the previous question where, you know, Robbie was talking about how we're making improvements, you know, fundamentally to be actual poor propositions to all the audiences.

We're making, you know, we're offering wider selection, better prices, better quality of delivery in terms of reliability, accuracy, and speed, and we're improving our customer service. And so whenever I see that, and I also see the opportunity for the runway to bring our portfolio of B2B products, which, you know, have done really well in the US, but even have more opportunity outside of the US, just given the more nascent development of digital technologies in the restaurant and retail categories overseas. I mean, I just think the potential is very, very big.

And it gives, I mean, the results are pretty clear, right? We've talked about the fact that, you know, in the rural side, I mean, the growth is accelerating. In fact, when you look at the underlying cohorts, the growth is, you know, some of the highest that we've seen over the last couple of years, even outside of that, when I look at the portfolio excluding Google, we are growing, it may use a growing, your frequency is growing, world plus, in fact, our subscription program in board are one of the best quarters, which is the record quarter in terms of overall paid subscriber growth.

At the same point, it's not just purely about growth for us, right? Like, we are improving the unit economics, not just across the world, but across the world as well. When you look at whether it's growth profit or contribution, both of them have continued to improve on a euro basis.

Sure. On the AI question, Deepak, I would say a couple things. The first thing is we want to make sure that any technology that we need, whether it's AI or, frankly, anything else, that it's actually rooted in delivering a better customer experience. Because if it's not, I'm not exactly sure what problem we're actually trying to solve. And I don't think it makes sense to just play with the technology for the technology sake. And so, when you look at some of the things that we've seen success, for example, one of the more recent products we launched was called DoorDash Ask, which is an ordering agent that helps customers discover restaurants that are similar to ones that they've ordered in the past, but that are new to them, that helps them build a grocery cart in under two minutes.

So really solving actual pain points that we see and using an increasingly larger and more diversified marketplace. That's one example. On the merchant side, we've seen automation in building catalogs for retailers or menus for restaurants, which includes all of the photos, the metadata around all of this. The different excuse and items so that we can actually onboard a merchant faster in order to get things for sales growth.

For Dashers, we're seeing improvements in routing as well as how we can help Dashers find the best areas to dash. Those are some examples of how we actually have applied AI in a way that is actually meaningful in terms of driving customer outcomes, which ultimately deliver business results. The other thing that we've done is with all things at DoorDash, we care as much about how we do it in order to be efficient as we do about allowing some degree of inefficiency towards invention.

With a lot of tools, tools like Dashbench and other systems internally that allow us to model the appropriate tools and give those tools to be used for the right level of token spend or intelligence required. I think those are some of the things in which we found ourselves. That's kind of our approach in terms of how we've applied it towards AI or, frankly, any technology.

It's why we're excited to keep going and lean in in a way that I think is disciplined on the one hand, but on the other hand, allows us to bring real customer benefits.

Hey, Deepa, when your second question around restaurant growth, yeah, my restaurant growth was quite strong in the quarter, if you look at it. In fact, growth accelerated from Q1 to Q2. A lot of the growth is coming from just increase in dash pass subscribers. A couple points, right? We load in the letter as well. We added more number of dash pass subscribers in the last year compared to the two prior years.

Number two, when I look at the paid subscriber growth in dash pass, it was one of the highest that we've seen in the last couple of years. A lot of that is the underlying product continuing to get better. A lot of that is the increased investment that we made in selection as well as quality. In fact, if you look at mature cohorts, they're continuing to engage higher than what we've seen before. New consumers continue to be quite strong as well. Ultimately, all of this is driving the growth that you're seeing in restaurants.

And what I would also say is if you think about Q2 of last year, it was unusually strong for us. So, pumping against what was a strong Q2 of last year and still putting up the strong numbers in Q2, that's a true testament to the demand that we're seeing in the business, as well as the underlying improvements in product.

Our vision is to be the best partner to, you know, every local business that probably is pretty clear from the missions and say one. And the way we do this is that we want to give every business, you know, the same tools that we built for ourselves so that they can grow their digital business. So if you think about, you know, what that, you know, looks like, I mean, we kind of play in this ecosystem where we have, you know, at least three offerings today, right? We have our marketplace. We have tools to help build the digital businesses of restaurants and retailers.

In fact, you know, that business, you know, serves over 150,000 businesses and has grown 40% year over year in the quarter. And then more recently, we've introduced products that actually drive customers inside the store. You know, some of these products include, you know, going out as well as reservations.

And then on the business side, it includes, you know, seven rooms, which is a company that we acquired about a year ago. And, you know, when I think about what the ecosystem allows us to do, I mean, it allows us to help customers build their relationships with the local businesses and ideally forge, you know, regulars for each one of these local businesses.

And the reason why we can do this is because we have the, you know, biggest scale, as well as the deepest customer data sets to allow us to actually drive this engagement, you know, for example, a customer may start by ordering delivery from the door. And then perhaps they sign up for a loyalty program on a merchant's, you know, first party channel.

Yeah, something that we've built for them. And, you know, when it makes sense, both the door dash and the merchant can incentivize the customer to, you know, go inside the store or go inside the restaurant and actually have a meal. And so when you think about the interaction effects here, what we really are able to do is be the best growth partner for all these businesses.

And, you know, for consumers, give them, you know, the most choice in terms of how they actually want to interact with all these businesses. I think the proof points we kind of highlighted in our quarterly update are really, really strong. And, you know, we think that this ecosystem is one that has a very long runway.

Sure. Maybe I can share with the question on dot and then, Robbie, feel free to chime in on the second question.

You know, I would say a few things about door dash dot, you know, the overall vision for autonomous delivery. At least the door dash is that we want to offer, you know, AVs throughout the network so that we can deliver the best service to customers. You know, the best service could be the fastest delivery, the most affordable delivery delivery from the widest selection, including from very far away places.

And, you know, I would say that the real secret sauce or the magic that we've learned in building door dash dot is that it's really the complexity of marrying the operation. With the technology that actually allows you to, you know, even have a chance at delivering scale of autonomous delivery. It put a different way, you know, door dash dot or any for that matter alone will not make autonomous deliveries, you know, actually scale certainly not at any level of meaningful penetration, you know, for customers. I mean, at the end of the day, you have to solve, you know, very challenging operational problems in the physical world. You have to solve the loading problem at the merchant.

You have to estimate merchant prep times in the case of restaurants or inventory levels in the case of retailers and grocery stores. You got to solve for difficult drop off issues like, you know, perhaps a door man inside of a high rise building or, you know, a complicated gate entry in an apartment unit.

These are all of the issues that we've encountered and are, you know, candidly like maybe one 1000s of the issues that we've encountered in building door dash dot in our test market. And so I think to get to the milestone that we have today with dot where we have meaningful scale in our test market has been a huge accomplishment by the team. And it gives us confidence that, you know, you can actually truly scale on autonomous delivery if you both can master the operations and the technology. And that's why I think we're the best position to do it because we run the network. And we're also building the technology ourselves, which gives us the lowest level of detail understanding of how to actually make this happen.

And doesn't mean that, you know, we have to build everything. We actually, you know, whether it's by land or by air, we have a variety of partners that we interact with. And, you know, for everyone, we kind of, you know, solve all of the challenging operational problems for them. And we do that through our autonomous delivery platform. So, you know, for immersion, you can take your existing door dash integration and you get access to any and all 80s. And for customers, you're going to actually one day get the benefit, you know, of these technologies.

And, you know, with respect to, you know, the cost profile, we were very excited by what we see. I mean, it's exponential progress. But I think, you know, that the first milestone for us has really been, you know, can you actually commercialize this in a way that you've seen, you know, certain Robotaxy providers like Waymo actually do it with rideshare?

You know, we've been able to now do it with delivery. We're seeing that in older cohorts. We've seen that in your cohorts, which is visible, you know, overall in the business as well. But let me actually take a step back and walk you through what our pieces was and, you know, why we put the second chart in the letter. Look, our core pieces was twofold. One is we knew that as customers or consumers habituate on the platform, they will spend more with us. They'll spend more with us on the restaurant business. They'll adopt newer categories. They'll spend more with us on the new vertical business. The example that we took in that chart was, you know, one of our older cohorts, which is largely representative actually of the other cohorts that we see in the business, where consumers spend on restaurants is increasing.

Consumers spend on new verticals is increasing. And at the same time, dash pass penetration is increasing. And if you think about it, right, this is almost like a self reinforcing loop, where the product gets better. Consumers adopt and habituate to dash pass. And they adopt dash pass. They continue to use the product more, which ultimately leads to more growth as well as more profit dollars in the system. This has largely been the focus for us. And it's largely what you're seeing in the underlying cohorts. And we're very pleased with the performance of that in the underlying business.

Yeah, I can start by answering about dash marks fulfillment services. You know, to say the obvious, you know, we want every local business to be successful in their local communities. And, you know, that's true in every category, you know, from restaurants to grocery to retail. And one of the things that we learned, you know, five years ago when we launched our grocery business, even though, you know, it's going so well and we're helping lots of groceries compete, is that there's this, you know, structural challenge with grocery delivery where Grocers don't know their inventory. In some ways, it's almost impossible for a whole host of reasons, one of which is because consumers come in and they move things around.

And so it's a very difficult proposition then to offer customers a use case where you're asking them to pay a premium for delivery, but they don't get exactly what they ordered. So that we can actually offer, you know, near perfect accuracy and give customers the selection that they want from any place inside the city and also very, very quickly. And so in terms of what we've seen so far since our announcement last fall and the launch that we've had with several partners is we're seeing lots of incremental demand because, you know, these warehouses are running near 24 seven. If you compare that to traditional store operating hours, that's a dramatic increase in time as well as, you know, really just solving the needs of customers because customers sometimes don't, you know, get freed up until maybe after store closing hours before they can think about, you know, the next day or planning their groceries or their shopping needs.

So we're seeing lots of incremental demand and we're also seeing, you know, 10 times better error rates because, you know, we're, we're running the inventory and as a result, you know, we're, we're selling customers exactly the customers are getting exactly what they ordered and we're selling them exactly what's actually in stock. And so, you know, all the signs right now are really positive, you know, for us to scale the film services, but look, this is complicated. I mean, this is building physical infrastructure.

You're obviously adding technology to it by managing the inventory and obviously running the entire fulfillment. So, but you can imagine a world in which, you know, these warehouses can power all of the needs inside of the city. And you can, what you can really do when you do something like that is you can really unlock the amount of selection available to customers. Because today, I would say doorasses delivering probably one tenth in most cities, you know, the available selection in terms of, you know, retail and, and, and, and grocery and the like. And so we can actually build this capability and, you know, do it in concert with all of the great retail and grocery selection inside of the city.

I think customers get the best product. They get all the selection that they want at perfect quality very quickly.

And sure that your second question around, look, I mean, trying to balance both growth as well as profitability, right, you're asked about the demand trends. Look, when I look at the underlying business, the demand trends could be quite strong. I mean, as you know, we focus and spend a lot of our time on cohorts, you know, and we use when I look across the board, they have it all time high subscription. I talked about the fact that both domestically and nationally, those are one of our best quarters in the sense that the subscription continues to be at record high restaurant growth accelerated to the group continues to do quite well. Overall, when I look at the underlying improvements in the product, that's driving the improvements that you're seeing both from retention as well as water frequency.

At the same point, I mean, look, I mean, the quarter was very strong from an underlying possibility perspective as well. A lot of that is because the underlying unit economics continue to improve. For us, the philosophy has always been the same, right? We're consistently trying to improve efficiency. There's many sources across the board, whether sales and marketing, fixed costs, you know, up and down the P and out. And our goal is to consistently reinvest back in the business.

Look, we talked about the fact that we're investing, you know, back into the business and building product, some of which we talked about earlier on the call, whether it's autonomy, unification of the global tech stack or investing back in merchant services. All of those are going well. They're all going, you know, on budget and on plan, according to what I estimated a couple of quarters ago. These will increase the success area. Ultimately, the goal for us is to continue to drive both growth as well as profit dollars. As long as we make the product better, what we're seeing in the business is we're able to do both, right? This is, you know, how we think about balancing both growth as well as profit dollar production in our business.

All right. I think he had like maybe seven or eight questions in there, Josh, but I'll do my best. Look, I'm Dornash Dot. It is a representative Dornash market. You know, we're testing in Phoenix. And so, and we're testing it, you know, with real scale now, which is like it's a real accomplishment. When you think about, you know, these are not demos. These are not prototypes. They're no fixed routes.

This is real life. And this is real life for, you know, tens of thousands of customers, you know, that are receiving real deliveries. And, and so that's very exciting. It's also very challenging. You know, I mentioned, you know, maybe five or six issues that might be literally one one thousand the number of issues that you have to solve to actually have a chance that making autonomous deliveries actually happen. And that's true, whether you're doing it by land. And it's also true why you're, you know, whether you're doing it by air. I mean, I know we've seen this with Dornash air as well. In addition to, you know, all the partners that, you know, we test with and bring our scale.

And so, you know, what I would say is the, what's going to determine, you know, the ceiling or the penetration of autonomous delivery is whether or not you can master both the operations and the technology. And, you know, I believe we're best positioned to do that because we're actually doing both in house. And so we are getting to the lowest level of detail. You know, chopping down the very heavy wood of every issue that exists in the real world that exists in every single restaurant retailer on the road.

And there's a lot of challenges when you actually try to, you know, take on that multi modality, you know, and, and you know, one of the interesting things, perhaps the most interesting thing of what we're building with autonomy is this autonomous delivery platform. You know, you can think of this as the brains that actually makes it all happen, you know, you that, you know, the ciphers, which vehicles go to which orders that, you know, decides whether you have a. You know, a mixed route, you know, where you have human dashers as part of the legs of the journey and autonomous vehicles and other parts of the journey.

You know, that, that, that looks into the configuration of the package size and the package design and the package weight. And, you know, there's a lot of complexity, but all of that gets reduced and kind of goes and disappears. Because we kind of handle it through our on autonomous delivery platform so that merchants get the same integration that they have with the word after that they don't have to change a single thing about their workflow. And customers just get access to the benefits of autonomous delivery, which, you know, will be in the future speed costs and more selection. And so I think that's going to be, you know, really, really, really exciting. And again, like, you know, it's really going to be the execution that determines.

You know, the ceiling, I think we're best suited for that execution. You know, I think your second question on the AI assistant, I mean, the short answer is, of course, if you're whenever you're making whenever you're reducing friction in a product, you get more usage. You know, so if we're making it easier to build a grocery cart, you get more grocery carts, and you get bigger grocery carts, and it doesn't change at all the ads profile or, you know, anything else. If anything, you actually get just more incremental orders and more incremental opportunities because people order more often.

The same thing that's true about ordering, you know, restaurants, if, you know, you now discover that there's something slightly healthier or faster or cheaper or just better or different from what you typically order, then you tend to order more often, and possibly for more use cases. You know, we eat 20 to 25 times a week, and the door actually only touches a fraction of that, and that is really the runway we have. You know, when I think about the number of the number of meal occasions and shopping needs on top of that, it's north of 100, you know, per month, and so we have a lot of shots on goal that we can go capture.

And if we just reduce the friction of actually ordering and then master and continue to master the operations of fulfillment, you know, all of the metrics will go in the right direction.

Hey, you so yeah, let me take that right like look at the highest level, what I would say is the core restaurant business continues to perform on all cylinders. Growth, like I said on the question, right, like growth accelerated unit economics continue to improve new verticals growing much faster than a restaurant business, as well as, you know, we saw in track to being gross profit positive by the end of the year. In an actual reduce to well, we've talked about some of the strength that you're seeing in delivery as well as the beat on unit economics there.

More specifically what we saw in the quarter was the unit economic improvement came in ahead of our expectations, specifically in a couple of areas. As was one of them, some total was the other one. When the second half of the quarter, those unit economics came in slightly ahead of what we had expected. In addition, who beat our own internal volume expectations, the rule is contribution profit positive that led to some of the upside that you're seeing in the business.

But I mean, more broadly, what I would say is our philosophy in how we operate the business that is not changing. Look, it's a very tightly managed business with a lot of levels that we control up and down the P and L. What we're consistently trying to do is try to find sources of efficiency. Like I said earlier, there's many sources of efficiency that we work on and take those and reinvest that back in the business. We're not trying to optimize the last dollar from one quarter to the next. Look, our focus has always been on how do you build a large durable business over time while continuing to increase the overall profit dollar production.

To a second point, I mean, I've always been on landing inside the range. And if you're thinking about the second half from a modeling perspective, I would expect us to land inside the range of the guidance that we've given in Q3. There are going to be times like in Q2 where the beta beat comes in later in the quarter.

In those times, we just don't have enough time to reinvest back in the business, especially at the levels of efficiency that we desire. Q2 was one of those quarters where we were happy to drop it to the bottom line.

Thanks guys. Just a quick follow up on the AV and then I had a question about the charts in the in the letter. So, Tony, I think you have a few hundred robots in Phoenix. How quickly is the plan to kind of bring this to other cities? That's the first question. And then on those charts, we love the door dash charts. But I'm guessing if Uber were to put together their sub-penetration relative to gross profit, it would probably look kind of the same for their leading markets.

So are there examples of cities or countries that you are kind of demonstrating the same trend as the U. S.? But you've either come from behind or you've kind of come like head to head and overtaken one of your competitors on dash paths or volt penetration for subscribers?

Thanks a lot. Sure. I can start on the AV question. Yeah. We're very excited about what's happening in Phoenix. But like as I mentioned, I mean, there's a lot we got to go figure out. And, you know, I'm a big believer that you really have to nail something before you scale it, especially in the area of autonomy where, you know, you're really solving like, you know, the problems of like six separate individual companies almost.

And you kind of have to be great at all. And it's this tightly orchestration again between the operations and the technology. I can't stress that enough because that is the name of the game. I think just doing one or the other is not going to get it done. And so there's a lot of work to be done.

We are in the, you know, in parallel, of course, securing permits because, you know, we work with cities to actually unlock a lot of this. And, you know, we do have plans to expand. We'll share, you know, certainly more at time comes, but we thought that it'd be helpful to offer just, you know, one milestone that we've accomplished and are excited about. But look, the road ahead for for AV is very exciting, but it's going to take time. And, and mostly it's going to take great execution between the operations and the technology. And that's what we're most excited about.

You know, on your second point, right? Like, let me take a step back and talk about, you know, subscription more broadly. I mean, if you think about subscription, it's very key area of focus for us for the past couple of years. Subscription continues to do well with its subscribers in the U. S. or international, the growth rate are some of the highest that we've seen in the last couple of years.

And the whole thesis for us was as dash pass penetration continues to increase overall gross profit per mile continues to increase. And I look at the penetration levels. We're still very, very early. We're seeing similar behavior in international markets compared to what we see in the U. S. Albeit some of the international countries are slightly behind because we launch subscriptions like you later than what we did in the U. S. And for specific examples, right? I mean, I talked about some of the examples under the group. Look, if you're thinking about the UK market, we are gaining share. We're one of the fastest growing in that market.

We're accelerating growth. We're accelerating, you know, paid subscriber growth, volume growth compared to what we've seen in the last couple of years. Even outside of the group, when you look at some of the countries that we operate in both, in majority of the countries that we operate, we continue to gain share. And the key thing for us is we're not just looking at share growth gains. We're looking at what the order rate improvements are. We look at either the three months or the six months we have continued to improve order rates. At the same point across both the blue as well as both, it's been a way for us to drive efficient growth. And look at the unit economics, either on your basis or over the last couple of years.

We've done a pretty good job of improving that. Next, I mean, look, you know, we've talked about some of the countries before, right? But it's UK, you know, Israel or some of the other markets. We continue to do really well in terms of overall share gain, as well as the underlying improvements and core metrics.

Sure. Yeah. Hey, Brian. Yeah. I mean, I would say we're still building the way you build these single tech stacks. It's not like, I mean, the better analogy is not like, you know, it's not like a Lego project where there's like a finishing step, you know, in the instruction manual. It's more like you're constantly, well, first you have to like replace an engine where you're flying a plane that's, you know, growing in speed and climbing in an altitude.

And then you're constantly making tweaks. That's probably the more appropriate analogy, but we're doing it. And, you know, where are we seeing benefits? I mean, I mean, a lot of places already. I mean, you're seeing, you know, conversion wins from improvements in search. You're seeing wins in automation in terms of our customer support flows and, you know, by bringing things, you know, from one place that was more automated to another place that that was less automated. I mean, the theme really is what we're trying to do and why, you know, there's a thesis for a return here is because you're taking the best of breed feature and literally, you know, offering to all of our 41 markets.

And so this is not like taking one stack and then just like copying and pasting everything into, you know, you know, all of the brands. It's actually literally taking the best of each and then putting it into a completely new engine and then running. It's like building a new company. And so, and that's why it's really hard. And, you know, candidly, it's not something that you would do if you do not believe more in the future than you did in the past.

And, you know, it doesn't even take into account the velocity benefits, you know, after you complete the project where if you were to ship once from an infrastructure perspective that actually gets shipped everywhere.

Yeah. Hey, Ron. Let me take a stab at both of those. Right. Like, look, subscription continues do well. Our team has always been as consumers habituate and be graduated into dash pass. The overall value proposition from not just a gross profit, but order frequency as well as retention goes up. And the example that we put in the chart was, you know, largely Jan 2021 cohort and we wanted to use that because it was sufficiently old enough where you could actually see the trends.

Also, it's largely representative of what we see in the other course, you know, the rest of the portfolio as well. Where what we see is as consumers order more with us as they retain more, they graduate to dash pass and as they graduate to dash pass, they can do to spend more with us. And we think that not just in the order of course, but in some of the newer course as well, which is ultimately leading to some of the growth that you're seeing in dash pass right. I talked about the fact that in US in dash pass Q2, the growth rate in terms of subscribers was one of the higher that we've seen probably in the last, you know, two years.

We added more number of paid subscribers in the last year compared to the two prior years. A lot of that is because the underlying product continues to get better. Right. Now, if you're on dash pass, you get to access retail grocery, other categories, which ultimately drives more value to dash pass subscribers. The way we increase the value proposition of dash pass to your question is making the underlying product better, right? It's more selection, making the quality of the product better, continuing to drive affordability.

And when we do that, we see clear improvements in both adoption of dash pass as well as the engagement from a dash pass perspective. And your second point, look, I mean, if you're thinking about the new fee service that we talked about, you know, last couple of weeks ago, look, it's largely a realignment of consumers, what they pay compared to the time and effort that dash has put in a delivery.

If you're thinking about it from like an impact to the panel perspective, I wouldn't think of it that way based on what we've seen in the market so far. The fee is largely similar or slightly less actually for the vast majority of the orders. So I would expect it to be a massive impact, especially in the market that we've launched it so far.

Yeah, I'll take that one and go for that, Robbie. I mean, let's say in short is no, the volume is quite low. You know, I think from some of the agentic partners that we've been testing with, but it also isn't that surprising, I think, for a couple of reasons. You know, I think first, you know, I think especially for some of the larger platforms out there, you know, their core focus has been on the enterprise and much less, especially in coding agents and probably last on the agentic side.

But, you know, the second thing is just structurally speaking, you know, if you look at it from a consumer's perspective, consumers don't really care what you call this thing, whether you call it agentic flows and pre-agentic flows post agentic flows. They honestly just care about getting their burrito or their pair of Nike's or their, you know, stock of weekly groceries. That's what they care about.

And, you know, at the end of the day, what that means is they care about the end-to-end experience, right? And so, if you think about it, we're effectively the only place that can offer that, whether that, you know, starts by knowing where all the inventory sits, what's in stock, what's not in stock, obviously managing the logistics at both the merchant as well as that drop off. And then, of course, solving exception handling when things were to go awry if there's the wrong item or the wrong promotion apply to an item. I think these are all the details you kind of have to get right if you want to do agentic commerce, you know, for our category.

And that's just not something that, you know, I think a lot of people are doing, but we're kind of filling the void, right? It's why Boredash launched Boredash Ask, where we effectively are solving that. But we're still, you know, very open, very excited to test, you know, all sources of incremental traffic, which is what we believe can happen. But, you know, something I said probably five years ago is that in the business world, this was 2021, you know, I was forecasting that there would be two big wars that would occur. One is kind of the battle for attention, and you see that playing out with, you know, chat assistants and other types of more powerful assistants now.

And then the other is kind of, you know, the battle for atoms. And I do think that the two services will come and partner with one another. And our focus is squarely on, you know, making sure that we master the physical role so we can be the most useful to all these digital assistants. You know, when they kind of, you know, come around to focus on agentic commerce that, you know, will be, you know, willing partners and grow together.

Hey Doug, let me take that one. Look, I mean, you're right. I mean, we're not operating the business towards a take rate or net revenue margin percentage. Our goal is when always to optimize for overall profit dollars. And as you can see, pretty strong quarter from that perspective as well as the Q3 guide. Look, lots of moving parts within the take rate.

The Q and Q increase, which is what I think you're referring to is largely from Dasher. Look, Dasher costs a seasonal for us. When you go from Q1 to Q2, Dasher costs a lower in Q2. That's what gave rise to sort of the pickup and take rate that you saw from Q1 to Q2. And if you're thinking about from a modeling perspective, what I would expect, you know, for the rest of the year, I would expect take rate to slightly be in the similar range in Q3. So flattish from Q2 to Q3 and lower in Q4. Again, as a reminder, I mentioned this before, Q4, Dasher costs are higher for us. That'll impact take rate, so you should expect Q4 take rate to be slightly lower than Q3 is.

But next, look, I mean, the goal for us is not to manage to a specific line in the P&L, especially the take rate percentage. Our goal is to invest flexibly up and down the P&L.

Thank you. I mean, not just purely about driving cost efficiency for us, right? Like we said earlier on the call, look, we're encouraging our teams to use AI across the board. For us, ultimately, the goal is how do you build better products for customers, which will ultimately drive, you know, both growth as well as overall profit dollars. Ask was one of the examples in which we're driving benefit to customers. We've done similar things on both merchant side. We were helping merchants on board faster.

On the Dasher side, we've been with the continental bodies where Dasher's, if they're stuck, they can actually chat with the agent to help themselves get unstuck. At the same point, look, we're seeing productivity in the cost board. You know, totally we're using it in sales, you know, accounting, marketing, finance as well. The goal for us has always been it's not just purely about encouraging the usage. How do you actually drive efficiency as well? We've taken a number of steps. We've built models where internally the tasks are routed to the right model, depending on what the actual cost quality and efficiency is. We put caps in place. We've also, you know, incorporated some of the AI budgets into teams existing budgets.

Look, we are seeing gains from, you know, the usage of AI. The sharper question for us is how do you take the efficiency gains and reinvest that back in the business? Look, we are investing in building some large areas. We've talked about autonomy. We've talked about AI. We've talked about the unification of the tech stack. These are all areas where we think it's going to be strong, long term, our way for us. The goal for us is how do you take the efficiency gains, whether it's AI or any other part of the P&O. But the philosophy is same, right? How do you reinvest that back into business ultimately to build scale and durability over a longer period of time, which leads to higher overall free cash flow production.

There's a lot of you how we're thinking about the efficiency gains. We'll be very happy with what we're seeing in the business today.