Doordash, the second-largest payment provider in Australia after the Australian Pay and Banking Association, has a huge problem on its hands, according to an analysis by the Australian Bureau of Statistics.
The bank reported a loss of $5.7 billion on $1.6 billion in revenue in the financial year to March 31.
While the company said its results were affected by a “low-cost mix”, it said that did not reflect the cost of customer service.
“The customer service experience has been one of our strongest points for a long time,” chief executive Andrew Rudge told analysts in Sydney.
“We are going to be working with customers to make sure that their needs are addressed and we are also going to have a great deal of focus on improving our communication.”
Rudge did not respond to a request for comment.
Doordashes Australian operations had been plagued by the fallout from the Australian Competition and Consumer Commission’s (ACCC) investigation into the company’s customer service practices, which found the bank’s call centre was overwhelmed and its phone lines were unreliable.
“Doordash’s Australian business is suffering from a severe shortage of customer contact centres due to a combination of lower demand for our services, as well as limited availability of our telephone systems,” ACCC chair Rod Sims said in a statement last month.
The company also blamed the ongoing financial crisis on the closure of its Sydney office in April 2016.
In an email, Rudge defended the company as having a “robust business model” and said the company had not been “losing money”.
“While the financial challenges do not always relate to our core business, they do highlight our robust business model,” Rudge said.
“Our competitive advantage in Australia has always been our customer service and our excellent customer service team, which has delivered a range of customer support services, from advice and support, to information, and much more.”
The company said it would continue to focus on customer service as it faced “new challenges”, including a “stronger focus on the business of customer care” and a “greater focus” on the “business of retail” and “business continuity”.
Rudge also told analysts that the company was considering a number of business initiatives, including offering “free” phone and email support to customers.
“At Doordas, we believe that a strong and profitable business model can be built upon the strong business culture that we are building at the moment,” he said.