![]() ![]() restaurant traffic - including visits to fast food outlets and food trucks - was picking up food to eat elsewhere. ![]() DoorDash is also candid about the impact of the coronavirus, saying it expects its growth rate to slow in the coming quarters as the pandemic ends.īefore the pandemic, 63% of U.S. In a government filing, DoorDash said it expects to continue to spend heavily as it tries to expand internationally and add non-food businesses to its platform. The company did turn a profit of $23 million in the second quarter this year, but followed that with a $43 million loss in the third quarter. Last year, it spent $410 million to acquire Caviar, an upscale rival.ĭoorDash had a net loss of $667 million in 2019 and lost $149 million in the first nine months of 2020. DoorDash has lost money in every year since its founding, citing the cost of developing its platform and expanding into new markets. The company's growth hasn't come without headaches. "DoorDash is a platform that's enabling the small, local merchant to play in this space, bringing the product in minutes, not days." DoorDash says those caps force it to charge consumers more."Ultimately, a lot of these trends will stay," he said. ![]() Several cities, including New York and Chicago, and the states of New Jersey and Washington have temporarily capped fees that delivery companies can charge restaurants. DoorDash says it reduced commissions for the smallest restaurants during the pandemic, but the fees will likely remain an issue. Some independent restaurants have been vocal critics of the company, saying its commissions - which can approach 30% - are too high. White says DoorDash also has the most variety in its listings, giving it less exposure to any one restaurant chain. But suburban families put in larger orders and drivers encountered more predictable traffic and parking so they could deliver more efficiently, Shmulik said.ĭavidson analyst Tom White, who has a “buy” rating on DoorDash’s stock, said the company’s strong market share gains and future possibilities, including grocery and retail delivery, outweigh the risk of slower growth once the pandemic subsides. Skeptics thought the economics of food delivery would fall apart in less dense areas, because there was lower demand. AP's earlier story follows below.ĭoorDash is capping a year of explosive growth with an initial public offering of its stock, hoping to keep the momentum going even if demand for food delivery eases in a post-pandemic world.ĭoorDash pulled ahead by concentrating on suburbs and smaller cities while its rivals stayed mainly in big cities, said Mark Shmulik, an analyst with Bernstein. The company hopes to keep the momentum going even if demand for food delivery eases in a post-pandemic world. That’s led to explosive growth for companies like DoorDash. Virus-induced lockdown orders and the closure of indoor dining have made meal delivery services indispensable for many restaurants and diners this year. The opening price valued the company which is trading under the symbol DASH, at around $58 billion. The shares opened at $182 after the San Francisco-based company priced them at $102 each late Tuesday. DoorDash shares soared 78% as the meal delivery service made its debut Wednesday on the New York Stock Exchange. ![]()
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