Food delivery is a ‘luxury,’ and DoorDash could be hit hard by restart of student-loan payments, analysts say

With the pandemic-era pause on student-loan payments coming to an end, Wall Street analysts have been trying to pick apart the effects it might have on consumer spending. One area that could take a bigger hit than others, MoffettNathanson analysts said on Friday, was online food delivery, potentially translating to bad news for food-delivery app DoorDash.

The analysts made that assessment after pandemic lockdowns reshaped the restaurant industry and government relief left many — though certainly not all — diners with more money to spend. The upheaval in the economy made food delivery an “affordable luxury,” they said. “As a result, we believe the future growth of food delivery bookings could come under pressure as consumers look to reduce spending in the most discretionary areas,” the analysts said. “We do not believe the market is currently reflecting these risks. We expect this to affect Uber Eats as well, but the business mix and international contribution to consolidated Uber minimize the impact.”

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