'DoorDash and Uber Eats and Instacart can only put up numbers like these because food delivery has become a calcified habit for so many consumers,' Cramer said.
CNBC's Jim Cramer on Thursday told investors food delivery isn't a habit consumers want to break, even as they feel the weight of inflation.
He looked at the recent successful quarters from DoorDash, Uber and Instacart-parent Maplebear, saying people seem more willing to spend on these services than other luxuries.on Thursday analyzed why food delivery companies are seeing success while many of their consumer discretionary peers suffer as consumers continue to feel the burden of. He said delivery is a habit consumers don't want to break, and they seem more willing to spend on these services than other luxuries.
"DoorDash and Uber Eats and Instacart can only put up numbers like these because food delivery has become a calcified habit for so many consumers, people who value their time as much as they value their money," Cramer said. "No wonder people don't have excess cash to throw around — they're spending it all on DoorDash."all beat Wall Street's expectations in recent earnings reports.
Although food delivery doesn't always offer great value, consumers built a robust food delivery habit during the pandemic which has continued and even grown,He added that many of these services have rewards programs that help customers save money, so the companies are trying to be more attractive in an inflated economic landscape.
"People seem to see delivery as a necessity rather than something discretionary, which is why these companies can put up great numbers when the restaurants are struggling," Cramer said.
Instacart (Maplebear Inc) Uber Technologies Inc Doordash Inc Markets Business Investment Strategy Stock Markets Jim Cramer Business News
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
The FTC should investigate DoorDash, Grubhub, and Uber EatsPolitical News and Conservative Analysis About Congress, the President, and the Federal Government
Read more »
Jim Cramer makes stock calls on surging DoorDash, tanking Intel, and 2 othersJim Cramer's daily rapid fire looks at stocks in the news outside the CNBC Investing Club portfolio.
Read more »
Uber, Lyft, DoorDash can continue to classify drivers as contractors in CaliforniaCalifornia's controversial Proposition 22 was upheld in the state's Supreme Court this week, notching a significant victory for Uber, DoorDash and other gig providers.
Read more »
Uber, Lyft, DoorDash workers remain contractors due to California Supreme Court rulingState’s highest court refuses to overturn voter-backed Prop. 22, a law written by the gig industry. The ruling means gig workers will remain independent contractors.
Read more »
'Tragic Outcome' for Gig Workers as California Supreme Court Hands Win to Uber, DoorDashBrett Wilkins is a staff writer for Common Dreams.
Read more »
Uber, Lyft, and DoorDash have finally won the Prop 22 gig worker battleUber, Lyft, and DoorDash can continue classifying workers as contractors in California following a ruling from the state’s Supreme Court to uphold Prop 22.
Read more »