DoorDash raises 2022 core growth target; eases driver shortage concern

May 5 (Reuters) - DoorDash Inc (DASH) raised its full-year forecast for a key industry metric on Thursday, saying it has largely skirted labor woes that have plagued most sectors to ensure seamless delivery of food and groceries.

The company's image as an enabler of gig-economy has helped attract a steady stream of delivery agents, unlike restaurant chains such as Domino's Pizza and Pizza Hut that have been struggling to maintain their fleet of riders in a tough labor market.

"There hasn't been a fiscal stimulus since the first half of last year. And some of that might be playing a part into the attractiveness of being a Dasher," DoorDash (DASH) Chief Financial Officer Prabir Adarkar told Reuters.

The company also said its new incentive to offer 10% cash back on gas also helped retain delivery agents.

The company now estimates gross order value, the total value of all app orders and subscription fees, of between $49 billion and $51 billion for 2022, compared with its prior range of $48 billion to $50 billion.

The largest U.S. food delivery firm, however, kept its core earnings forecast unchanged.

For the first quarter, the company posted a wider loss as it invested heavily in building out its delivery network for groceries.

Net loss was $167 million, or 48 cents per share, compared with $110 million, or 34 cents per share, a year earlier.

Overall revenue jumped 35% to $1.5 billion, allaying concerns that an easing pandemic would prompt people to eat out more and order in less.

Analysts on average were expecting a loss of 41 cents per share and revenue of $1.38 billion, according to Refinitiv IBES data.

DoorDash (DASH) also said the number of people who subscribed to its DashPass service as well as average order frequency touched record highs during the quarter. (Reporting by Praveen Paramasivam in Bengaluru; Editing by Anil D'Silva)