DoorDash Inc. (DASH) Expands Fuel Relief for Dashers amid Costs Concerns

DoorDash Inc. (NASDAQ:DASH) is one of the top growth stocks in billionaire Philippe Laffont’s portfolio. On March 30, Wolfe Research reiterated DoorDash Inc. (NASDAQ:DASH) with an Outperform but cut the price target to $195 from $265.

DoorDash Inc. (DASH) Expands Fuel Relief for Dashers amid Costs Concerns

Proxima13/Shutterstock.com

The price target cut comes on the heels of the company announcing fuel price relief for delivery drivers. The fuel relief program also includes 10% cash back on gas for delivery drivers with a DoorDash Crimson Visa debit card, five times the standard 2% rate. Dashers who drive 125 miles or more are also entitled to a relief payment starting at $5 to a maximum of $15.

The firm expects the relief to trigger $15 million in costs in the next four weeks, with the majority of the impact, at $11 million, coming in the second quarter. If DoorDash decides to continue the fuel relief effort, the research firm expects the company to incur an incremental cost of $15 million monthly. It has also lowered its gross order value and EBITDA estimates to account for the fuel price relief.

DoorDash Inc. (NASDAQ:DASH) is a leading local commerce platform and technology company that facilitates on-demand delivery and pickup services. The company connects consumers with a variety of local businesses, including restaurants, grocery stores, retail shops, and convenience stores via its app and website.

READ NEXT: 10 Undervalued Large Cap Stocks to Buy and 9 Best Gold Mining Companies to Buy With High Upside Potential.

Disclosure: None. Follow Insider Monkey on Google News.