DoorDash is reporting record quarterly revenue even as more Americans feel increasingly uneasy about the U.S. economy.

U.S. food delivery app DoorDash has agreed to acquire British rival Deliveroo for 2.9 billion pounds ($3.9 billion) in cash.

DoorDash set quarterly records for total orders and revenue despite slowing U.S. restaurant traffic.

DoorDash reported higher-than-expected revenue in the first quarter as strong growth in U.S. grocery orders helped make up for slowing restaurant demand.

DoorDash posted stronger-than-expected results in the first quarter as it expanded into new markets overseas and new delivery categories at home.

Delivery company DoorDash is eliminating more than 1,200 corporate jobs, about 6% of its total workforce, saying it hired too many people when demand for its services increased during the COVID-19 pandemic.

DoorDash is buying Finnish delivery service Wolt Enterprises, expanding its reach into Europe and other markets.

DoorDash shares soared in its initial public offering Wednesday, capping a year of explosive growth for the food delivery company. Powering that service are 1 million delivery drivers, who are independent and not considered DoorDash employees. But lockdown orders and the closure of indoor dining have made DoorDash indispensable for many restaurants and diners this year. DoorDash now controls 50% of the U.S. food delivery market. Skeptics thought the economics of food delivery would fall apart in less dense areas, because there was lower demand.

SAN FRANCISCO - On-demand food delivery startup DoorDash has agreed to acquire rival Caviar for $410 million. Caviar, the premium restaurant delivery service, was most recently owned by payments-services company Square, which bought the firm in 2014 for about $90 million when it was just an early-stage startup. "We have long-admired Caviar, which has a coveted brand, an exceptional portfolio of premium restaurants and leading technology," said DoorDash CEO Tony Xu in a statement. DoorDash raised $600 million in new financing in May, valuing the company at $12.6 billion, Xu has said. DoorDash has faced scrutiny in recent months over its controversial tipping policy for delivery workers, where some tips contributed to their base pay.

Food delivery companies are under increased scrutiny over how some worker tips contribute to their base pay. Food delivery companies are under increased scrutiny over how some worker tips contribute to their base pay. A reporter spent time as a delivery person and showed how customer tips contribute to worker pay, a policy in place since 2017. If their base pay and the customer tip only reach $12, the company will kick in the extra $3. Amazon says that on average it contributes over $19 an hour to a delivery partner's pay, and that delivery partners earn $18-25 an hour.