DoorDash faces its latest problem: Wooing Wall Avenue

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Combining it with competitors to become more profitable is "not that insightful to watch," said Xu, adding that he is focused on DoorDash's growth strategy.

When the company releases its financials, the potential for profit and growth will be clear, DoorDash investors said. They pointed to Meituan Dianping, a Chinese food company that went public in 2018 and made a profit for the first time last summer.

An investor, Ali Rowghani, said the company lost money entering a new city, customers who tried the service but were more likely to stick with it and use it more often.

"When the market matures, they make money," he said.

Other investors said the grocery delivery market was bigger than taxis and that DoorDash could be bigger than just groceries to eventually deliver all kinds of goods and services.

Right now, DoorDash is focused on making the grocery part work. The company is experimenting with autonomous vehicle delivery, partnering with Chase to offer free delivery to credit card customers, and a red brick commissioner in Redwood City, California that houses kitchens for several restaurants, including Chick-fil-A. DashPass subscription service offers unlimited shipments for $ 9.99 per month and has 1.5 million customers.

Still, DoorDash is grappling with legal and regulatory issues – from a new California law that may force it to classify its drivers as employees, to a class action lawsuit for tips and another for a data breach.

Ala Mohammed, 37, of Daly City, Calif., Said he drove for DoorDash during peak meal times when he could make up to $ 20 an hour. Outside of business hours, the pay is lower, so he also drives for Grubhub, Lyft, Caviar, Deliv and Instacart. Mr Mohammed said he would keep driving until he found a more stable job.