Doordash 's stock plummeted toward its worst session ever as investors rejected the company's aggressive spending strategy.
The food delivery platform said it plans to shell out "several hundred million dollars" next year on new product initiatives like autonomous delivery and a new global tech stack.
These plans will improve its product globally, but involve "direct and opportunity costs" in the short run, Doordash said.
CEO Tony Xu defended the company's spending decisions during the earnings call with analysts and said Doordash is running the business as it always has — to solve problems for customers in the highest quality ways.
"Our track record in investing in the areas that we currently have operating ... have suggested that we've had some success in repeating this playbook, and we're doing this now for future growth," he said.
In recent months, Doordash has spent big money to open new markets and boost optionality for customers as it battles industry competitors such as Uber , and worries mount of a slowdown in consumer discretionary spending.