DoorDash (DASH 3.12%) quickly became a disruptive technology in the food delivery space, and its embrace of emerging tech continues to be a driving factor behind its success. Uber Technologies (UBER -0.38%) uses its Uber AI division to integrate new developments into its platform and continue to streamline its works.
Both of these companies stand to benefit from widespread adoption of artificial intelligence and the rapid pace of innovation in this new field of generative technology. Let's see what this could all mean for investors.
DoorDash banks on generative AI to fill gaps
DoorDash Engineering identifies five areas where generative AI can make a huge difference. It starts in customer assistance, learning from inputs to simplify and enhance customer input and operation of its app and related tools. By tailoring interactive discovery with machine learning, DoorDash can also make better recommendations based on individual preferences. Personalization can now go beyond simple memorization of preferences, instead making inferences from previous inputs to better suit the needs of each customer.
The final two areas where DoorDash expects to harness generative AI fall under operations. AI tools can easily and efficiently extract nutrition information for menu items or shopping lists and display those for customers, giving consumers more information without additional labor-intensive transcription costs. Generative coding and testing can also help balance tech and development responsibilities and duties for app innovation and integration.
With all of these initiatives underway, adoption of AI could well help transform how DoorDash does business, without the expenses often associated with such a major change in presentation or operation.
Uber AI delivers with machine learning
Another excellent example of a delivery-focused company that relies heavily on cutting edge technologies is Uber, which stands ready to integrate AI through its Uber AI division. Uber's center for advanced artificial intelligence research and platforms has years of experience under its belt, and the spread of AI technologies falls well within its purview.
Uber already uses AI for route planning, demand forecasting, and even communication with consumers. As these tools advance, so too does the customer experience with the delivery company, whether it's transporting passengers or food.
Uber AI also fosters collaboration with other artificial intelligence innovators, which helps secure its place as a thought leader and authoritative figure in the market. Generative networks developed by the company allow its AI to dramatically increase the amount of data collected and employed in decision-making processes. This competitive advantage likely serves the company well when it comes to actually using available data, one of the traditional big data challenges.
Challenges of adopting emerging technologies
Many of the biggest challenges of adopting artificial intelligence lie in the initial adoption costs. Neither of these companies consider AI new to the market, and they have shown different approaches to that adoption.
DoorDash continues to find new and innovative ways to integrate AI into its product, and the rollout may prove costly but ultimately should help the company move more quickly toward overall profitability. Uber continues to establish itself as a leader in the field, and its more substantial investment may give it a strong advantage going forward.
Both companies may well leverage artificial intelligence to mitigate much of the loss from further AI development as machine learning begins to take over much of application development and testing. Research and development cost Uber $775 million in the first quarter of this year, while DoorDash reported expenses around $231 million for R&D. Implementation of AI could reduce the load on these expenses, though Uber has the lead with its fully established AI team and neural networks underway.
Both companies will also have to contend with the necessary creation of laws and requirements to protect consumer data and shape generative AI development, hurdles for all companies looking to benefit from the technology. The future of artificial intelligence could well have a major impact on food delivery stocks, and these two leaders seem well-positioned to make further transitions to AI integration with both consumer experiences and backend development.
Gearing up for how artificial intelligence will affect industries, especially in tech and consumer services, appears to be a very wise investment that will likely pay off for Uber and DoorDash over time, making both appear a smart buy in today's market.
