The recession-proof-ish corner of the fridge
Consumers are tightening up their spending, but they’re apparently not ready to break up with dinner-on-demand. DoorDash, Uber Eats and Instacart all posted strong quarterly growth, suggesting people are still willing to pay extra so they don’t have to put on pants and go to the store.
DoorDash CFO Ravi Inukonda basically summed up the thesis with a line that should make every delivery-app investor nod along: people eat 21 times a week, whether it’s food or groceries. That’s not a tiny detail — it’s the kind of repeated, unavoidable behavior that makes a business feel less like a fad and more like a habit.
Why this matters to your portfolio
The broader consumer backdrop is pretty wobbly:
- U.S. retail sales fell 0.6% in July
- Walmart just logged its slowest quarterly comparable-sales growth since 2020
- Inflation is still outpacing wage growth for a lot of households
Translation: shoppers are being pickier. But food is still a necessity, and delivery is increasingly part of the “worth it” bucket. If skipping a store trip saves time, gas, or a headache, plenty of consumers seem happy to pay for the convenience premium.
The plot twist: delivery isn’t just burgers anymore
DoorDash is also pushing beyond restaurant meals into groceries and more retail categories, including regional grocers and Kroger purchases using SNAP benefits. That matters because it gives the platform more ways to show up in your weekly spending without relying only on late-night fries and impulse wings.
Uber’s delivery gross bookings rose 26% in the second quarter, and Instacart is benefiting from the same “I need it now” consumer behavior. So while lots of discretionary spending is getting side-eyed, food delivery looks stubbornly durable.
Big picture: in a cautious consumer world, convenience is starting to look a lot like a luxury with recurring revenue.