Ravi Inukonda: Yeah, but, just to add to that, like, demand continues to be very strong. You can see that in the cohorts as well. When I look at the 2023 cohorts, they’re as strong as any of the other cohorts we’ve seen. I talked earlier on the previous question, order frequency has continued to set an all-time record in Q1. And when we look at the newer cohorts, they’re actually joining the platform at higher order frequency compared to many of the older cohorts. DashPass also had a very good quarter. Last year we ended DashPass with over 18 million subscribers. That number has continued to grow. So when you look at the growth across all three lines of business, we are really pleased. All three lines of business growing double digits very strong as well as gaining share across the board.
Lee Horowitz: Very helpful. Thank you.
Operator: Your next question comes from the line of Ken Gawrelski with Wells Fargo. Please go ahead.
Alec Brondolo: Hey, this is Alec Brondolo on for Ken. Appreciate the question. You noted earlier in the call that the investment that you were going to make in New York City and Seattle around the minimum wage was going to decrease through the year. I’m sure there’s a fee — consumer fee component of that, but it also sounds like there’s probably operational changes that you’re making in those markets to improve profitability. So could you maybe speak to those, to the level of specificity you can? And then maybe secondly, I think that thinking about Dasher supply since COVID, it seems like it’s been a little cyclical. In ’21, when people are getting supply chain stimulus checks, Dasher supply was tight and it seems like it’s been very favorable over the last 12 months to 18 months.
Could you maybe just speak to your outlook for Dasher supply? Should it remain healthy over the next year or two? Any potential changes to the supply environment would be helpful, too. Thanks.
Tony Xu: Sure. I mean, I can start maybe on the question. I think in general, when it comes to regulatory, it’s honestly just making the best with what you have, right? And so it’s — I mean, we know what customers expect. They want the widest selection. They want the lowest prices, the best quality and the best levels of support. So that’s what you should expect us to do in any market. And then also at the same time, I think work with regulators to show them, I think, the impact of some of the work that they’ve contributed, whether it’s — and especially when it’s gone opposite of what they hope to achieve. We certainly want to show them those results, too.
Ravi Inukonda: Yeah. Just add to what Tony talked about here on Seattle, New York. You’re right. I mean, we did absorb cost in Q1. I do expect the amount of cost that we’ll absorb to reduce as we go through the rest of the year. That’s largely being driven by further improvements in efficiency whether it’s logistics, quality, credits and refunds. We’re going to take a look at the entire P&L and see where we are going to continue to drive efficiency, which will ultimately drive improvement in unit economics. And at the same time, our goal is to ensure that all markets that we operate in have sustainable unit economics. I mean, to get there, it’s going to be gradual, but that’s the goal for us in general. And I think the second point around Dasher supply, supply state continues to be very healthy.
When I look at Dasher costs, we’ve driven leverage and efficiency despite absorbing some of the regulatory costs on a year-over-year basis. As I look ahead, for us, efficiency largely comes from improvements that we are going to make on the product side. If you look at over the course of the last year, we’ve made a number of improvements, whether it’s redesigning the Dasher app or updating the way Dashers earn on the platform. All of that is driving increase in Dasher retention, which is making Dasher acquisition more efficient. And at the same time, we are seeing more hours from existing Dashers, which is making Dasher pay also more efficient. We have a long list of improvements that we continue to plan to make, which will make Dasher costs overall more efficient across the board.
Alec Brondolo: Thank you so much.
Operator: Your next question comes from the line of Douglas Anmuth with JPMorgan. Please go ahead.
Douglas Anmuth: Thanks for taking the questions. Ravi, you talked about higher EBITDA in the back half relative to one — to the first half. I was just hoping you could help us understand what drives the confidence in better unit economics and then the returns on those first-half investments. And also, can you just shed a little more light on the step-up in R&D spending in 1Q and how we should think about that through ’24? Thanks.
Ravi Inukonda: Yeah, Doug, I’ll take the second half question first and then talk about the R&D spend and the outlook for the rest of the year. First, I mean, the formula is relatively simple. What we’ve used historically, we’ve seen that in ’23 as well as ’22. What you’re seeing in the business today is the core restaurants business continues to grow quite nicely, double digits as well as continue to improve in terms of overall profitability. At the same time, you’re seeing the growth in new verticals, whether it’s grocery or other parts of the portfolio, as well as the international business where we’re continuing to improve the unit economics. Gross — I mean, a third-party component of the new verticals portfolio is unit economic, profitable for a few quarters now.
