When the coronavirus outbreak started over a year ago, many cities were quick to shut down indoor dining, limiting restaurants to takeout and delivery options only. Now that restaurants are doing so much takeout and delivery business, customers are in a better position to take advantage and engage in fraud. Between fraudulent complaints of missing orders, missing items, or incorrect items, restaurants are losing money on delivery and takeout -- and they're also fighting a losing battle.
DoorDash (NYSE: DASH) was a clear beneficiary of economic lockdowns that triggered a boom in the food delivery industry. Despite this powerful tailwind, the company still failed to deliver positive earnings amid additional expenditure on key line items like marketing. As the pandemic fades and consumers return to restaurants, DoorDash may have missed its opportunity.
Both companies serve the restaurant industry's delivery needs, but they do so in very different ways.