Tony Xu: Sure. Maybe I can take the first part, and then, Ravi, you can take the part around the financial impact. I mean, I think it’s pretty clear in both Seattle and New York City as maybe you have read, James, in our press release, that, I mean, these regulations clearly are having the opposite impact of what they intend to do, right? I think they certainly purport to help driver earnings, but instead, what’s happening is it’s making the service a lot less accessible and a lot less affordable, right? It’s increasing costs which makes it such that consumers have to pay more, merchants are making less as a result, and drivers are getting fewer work opportunities. I mean, that’s what you see in both Seattle and New York, I mean, to the effect where even I think Dashers, merchants and consumers in Seattle are lobbying their lawmakers and regulators and elected officials to overturn the regulation.
So I think that’s the unfortunate part of what’s actually happening, which is it’s literally having the opposite impact. Although this probably could have been predicted, as I think we’ve been telling lawmakers and regulators alike. But I think to the broad question that you’re asking, this is kind of what we’ve been saying since, I guess, going public and honestly what we predicted even 10 years ago when we started the company, that most governments and lawmakers want to be productive participants in working with businesses to provide a service that deserves to exist in cities. I mean, why wouldn’t you? I mean, think about the billions of dollars or tens of billions of dollars that you’re adding to the local economic GDP or the fact that you’re offering a service that consumers love and a place where anyone can really earn extra income on their own time.
I mean, who wouldn’t want that? And so I think most governments think like that. And that’s true across the world, not just here in the US. But there are a handful of cities where you listed a couple of them where they’re antagonists to this perspective. And in some ways, they would prefer the opposite of creating positive GDP inside their cities. But I think that’s still limited to the handful of cities on one hand that we’ve kind of forecasted both 10 years ago when we started the company as well as what we’ve been saying ever since going public.
Ravi Inukonda: Yeah, James, on the second point, we’re not disclosing the exact EBITDA impact from both New York and Seattle in Q1. That said, we did absorb a meaningful amount of cost in the quarter. Look, I mean, our approach to regulatory markets has not changed. First and foremost, our priority is to ensure they were making the business more efficient, which we did in Q1. We did pass on some fees to consumers. I do expect that every market that we operate in over time will have sustainable unit economics. I do expect us to reduce the cost that we are taking in Q1 to go down over the course of the rest of the year. It’s not going to be a step function change, it will be gradual over time, but we expect both markets to be sustainable from a unit economic perspective going forward.
James Lee: Great. Thanks.
Operator: Your next question comes from the line of Brian Nowak with Morgan Stanley. Please go ahead.
Brian Nowak: Great. Thanks, guys. Maybe let me go back to that last comment you just made about every market that you are in you’re looking to have a sustainable unit economics. Can you help us understand a little bit more on the international side? You have all these countries that you’re investing in the international side. I know a lot of times scale is important to driving durable profitability in food delivery. Sometimes competitive dynamics are an advantage. Just walk us through, like, how should we think about the different countries and how you’re managing the international portfolio, just to make sure that all the markets that you’re in can actually get to profitability over time.
Tony Xu: Yeah. Hey, Brian, I can start. And feel free, Ravi, to chime in. We’re very pleased with our international portfolio. I mean, now it’s about 29 countries outside of the US. So to your point, it’s certainly an expanding portfolio, which makes it more complex to manage. But at the same time, the business is a minimum efficient scale business, where in each Zip code or collection of Zip codes or locale, if you can achieve minimum efficient scale, every dollar or every order that comes after that point kind of becomes dollars that you can use to eat up all the investments that you’ve made in the market. So we feel pretty good about where things are heading. I mean, we are continuing to expand. I mean, I think that’s really the story of international right now in the sense that we’re not even in the geographies that we are in, in 100% or even close to 100% of the population.
And so we have a long ways to go in terms of getting to the cities that we want to reach. We certainly have a long ways to go in adding merchant selection in restaurants, outside of restaurants. We have a lot of work to do to bring the product portfolio that we’ve kind of built over the years equally or evenly across every country. But we like what we see, right? I mean, like, if you think back to the investment thesis we had when we teamed up with Wolt, for example, which certainly added very quickly our international portfolio, it was really just two things, right? One was if we were to team up with the product that — and the company that had built the leading product when it came to retention order frequency. And number two, that we can find the best operating team to be singularly focused on running the international business, that, that would be the most capital-efficient way to grow outside of the US.
And certainly, both of those dimensions have been true. I mean, I think on the business side, I think Ravi may have mentioned this, but we’re growing many times faster than our peers, and that’s been sustained over the last two years to three years, and that continues to be the case. And then on the second point around the management team, Micky and the team have done a phenomenal job of running, obviously, the Wolt portfolio, but then also adding on countries in the DoorDash portfolio outside of the US. And so they’ve done a really good job across all of those dimensions, which frees up management bandwidth to focus on, obviously, the core US restaurants business, but then also adding other legs of growth, whether it’s the platform business, the new verticals business, the ads business, and obviously other initiatives we’re investing in for the future.
So I think all of that is teaming up really nicely. You’ve also had this nice cross-team learning dynamic where we’re certainly introducing things to the Wolt team and those markets for the first time, which is adding both top and bottom line impact and conversely, the other direction. So I think when I look at how things are going internationally, they’re going pretty well.
