DoorDash reported higher-than-expected orders and revenue in the third quarter but warned investors that it will be spending significantly more on product development next year.

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 reported better-than-expected sales in the third quarter as it gained users and they ordered more frequently.

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.