DoorDash takes a hefty cut from restaurants, and risks losing them to cheaper options

DoorDash’s commissions, which can reach 30% of an order, are too high for many restaurants to bear. The company’s revenue growth reached 268% in the third quarter as more restaurants turned to delivery to stay in business. “I’d rather spend those marketing dollars to get people directly,” said Salvatore Reina, owner of three Francesca pizzerias […]

DoorDash delivers 86% gain in stock market debut

DoorDash shares soared in its initial public offering Wednesday, capping a year of explosive growth for the food delivery company. What’s not yet clear is whether DoorDash can keep the momentum going even if delivery demand eases in a post-pandemic world. The San Francisco-based company raised $3.4 billion in the offering, making it the second […]

Restaurant Industry Warns Of “Economic Free Fall” As 110,000 Eateries And Counting Are Permanently Shuttered

The National Restaurant Association (NRA) sent a damning letter to Congress today (Dec. 7) addressing the collapse of more than one hundred thousand restaurants across the country this year because of the virus pandemic. In just the last three months, the letter said more than 10,000 eateries have closed, and thousands of others are in “economic freefall.”  The […]

DoorDash: The Most Ridiculous IPO Of 2020

Is it a coincidence that DoorDash (DASH) filed for its IPO so soon after vaccines for COVID-19 were announced? I think DoorDash’s current investors and bankers recognize that the window of opportunity to IPO this terrible business closes quickly when the threat of COVID-driven lockdowns no longer drives growth in food delivery demand. With the latest S-1 […]

DoorDash Shareholders Could See 816% Return from IPO

The expected DoorDash IPO is set for December 8, when the company hits the public markets. It filed a detailed prospectus (S-1) in mid-November (which you can read all about here). In short, the company reported $1.9 billion in revenue and a loss of $149 million in the last nine months. That’s more than double […]

Jimmy John’s partners with DoorDash using self-delivery product

Dive Brief: Jimmy John’s has partnered with DoorDash and will use DoorDash Self-Delivery, a new product for restaurants to generate demand and reach new customers on DoorDash’s marketplace, while using their own drivers, according to a press release. The rollout follows a six-month pilot at 100 restaurants. The two companies worked to build direct integration with Jimmy […]

DoorDash IPO Could Make CEO Tony Xu And Cofounders Billionaires

Food delivery app DoorDash is going public, and if all goes according to plan, its CEO, Tony Xu, and two other cofounders will all become billionaires. The 36-year-old Tony Xu is leading the delivery app’s push for an initial public offering likely before year-end that would boost his net worth to just over $1 billion […]

Grubhub: Justeats Bet On The Wrong Horse

Summary Grubhub stock will be moving towards $75.15 in H121 (from the current price of $74) as the merger with Justeats gets regulatory approval. The foodtech market in general is a “winner takes all market” with companies striving to gain >50% market share. Grubhub has been the biggest loser in the food-delivery space as Doordash […]

DoorDash seeks valuation of up to $32 billion in IPO, double what it was in June

Food delivery app DoorDash is looking to raise up to $2.8 billion in its IPO, which would value the company at $32 billion on a fully diluted basis, the company revealed in a new filing Monday. DoorDash plans to list 33 million shares at a price between $75 and $85. The company will list its […]

WHAT 3 THINGS WILL CAUSE THE DOORDASH IPO TO FAIL?

DoorDash is poised to be the second hottest IPO of the year behind only AirBnb. To get you ready, we’ve scrubbed the IPO filing (S-1) to put together the three pillars that are critical to the success of the company. If any pillar crumbles, so will DoorDash. To do it we’re using visuals, six to […]