Doordash - latest round of funding

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Feb 12 37 Comments

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TOP 37 Comments
  • Intuit b7x1s
    Really displeased with how these companies factor tips into the driver’s compensation. I don’t trust them when they say “100% of tips go to the driver” when they reduce their payment. It’s shady.

    I avoid these services entirely for this reason. Rarely do I use them, eg I am sick and cant get out of the house but need to eat.
    Feb 12 3
    • eBay
      seat

      eBay

      BIO
      Why did you click on me 😡
      seatmore
      The way DoorDash does it is actually done to reduce cherry picking.

      On some platforms, drivers will constantly decline $3 orders and wait for the $10-20 order to come.

      With the tip subsidizing, it’s actually better for drivers because the tips are spread out among the driver pool. Most of their orders will be around $7 and they are far less likely to cherry pick. They are just less likely to get those big $10-20 orders, though they still happen
      Feb 12
    • Square cityofgod
      Intuit, you should try caviar. They don't reduce pay based on tip amount.
      Feb 12
    • DoorDash / Eng mxbtpq
      eBay gets it. Spot on
      Feb 13
  • Capital One EXwk33
    6B is a crazy valuation. Grubhub is valued at 7 and is dominant relative to doordash...
    Feb 12 5
    • DoorDash ajlX64
      We are growing 60% faster than Uber and 500% faster than grub. Same size as Uber today and we’ll be bigger than grub in a few months.
      Feb 12
    • Capital One EXwk33
      I will take the other side of you be bigger than grub in a few months. I wish you the best on that though.

      I honestly think the bigger issue for all of the players is that it is a super competitive market with low barriers to entry, which make it really hard to generate the profits necessary for the valuations to hold in the long term.
      Feb 13
    • DoorDash / Eng SFDasher
      In a competitive market with low barriers to entry, the most well-capitalized and largest will generate economies of scale and become profitable and the smaller companies will consolidate or get acquired. In the end there will be 2-3 dominant players and the economics are there to support the valuation. Grubhub and players in other countries have proven the economics work.
      Feb 13
    • DoorDash Wazzzup
      DD is already bigger than Grubhub on revenue basis... (based on their Q4 numbers that just got posted). I don’t think that falls under the definition of “dominant”
      Feb 13
    • DoorDash vupd68
      A couple months later 👋 CapitalOne is wrong
      Apr 12
  • Facebook targeriyan
    DoorDash is going to emerge as a dark horse I’ll bet my money on it ... simply looking at the amount of progress it has made compared to its competitors, the number of US markets it is in and the latest round of executives it has hired ... it says a lot for a company ... top execs from Uber/Facebook and other companies will never go to a company if they don’t see a potential
    Feb 13 0
  • Udacity RkcO20
    Agreed probably only uber eat will survive
    Feb 12 3
    • Cisco / Eng
      hhh222

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      don't think so
      Feb 12
    • Capital One EXwk33
      Grubhub has legit unit economics
      Still probably over valued, but at lest it makes a real profit
      Feb 13
    • Expedia expedia.c
      @capital You work at Grubhub huh Grubhub will be the third largest food delivery company within 6 months. I suggest you get out and join Uber or DoorDash.
      Feb 15
  • Airbnb / Other IdkdjmakGn
    Doordash’s focus and strategy has helped it leapfrog competitors. Also this isn’t exactly a winner take all market from what I understand. So multiple players can thrive.
    Feb 13 0
  • Big bubble here. All these food delivery companies. What’s your unit economy?
    Feb 12 1
    • eBay
      seat

      eBay

      BIO
      Why did you click on me 😡
      seatmore
      GrubHub is UE positive at around $2 per delivery. I’d wager other competitive services are similar
      Feb 14
  • Quantcast disturb
    Why is it burning through cash? It raised 800M last year. I wonder if the founders have even 1% voting rights on the board. I also wonder if the employee options will be worth much if it exits.
    Feb 12 3
    • DoorDash mx-first
      Same strategy as Amazon. Low margins but grow like crazy.
      Feb 12
    • Microsoft wbYt28
      Respectfully, could you please explain why your margins are so low?

      You charge a delivery fee, and you use the tips to subsidise driver pay. And then you have a service fee on top of that. Seems like a lot of revenue per delivery, with very little cost on your end.

      (And that's not even counting any fees you charge the restaurants, if there are any, which I don't know about)

      What are the expenses? The app and website are basic. Drivers bring their own car/bike.
      Feb 13
    • Capital One EXwk33
      The difference is Amazon ended up making huge profits from AWS which is high margin. They also had a huge first move advantage in ecommerce. I cant see without massively changing the business model what advantage doordash has. It looks like they are in a crowded market and are just willing to throw money at growth without a clear endgame for how that pays off
      Feb 13
  • Salesforce hot
    Burn baby burn
    Feb 12 0
  • Overblown valuation. I doubt DoorDash is going to go much further than where we are in 2019.

    What makes them so different from everyone else? Nothing.
    Feb 12 5
    • Cisco / Eng
      hhh222

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      we ?
      Feb 12
    • DoorDash B8ky61hte
      Doordash is different from everyone else in that we're the only company in the space that's growing market share in a meaningful way. Grubhub is declining rapidly and is the only company with higher market share according to this article: https://oversharing.substack.com/p/doordash-is-the-dark-horse-in-the
      Feb 12
    • Capital One EXwk33
      Given grubhub is the one public company where revenue is reported, it looks like your statement about declining rapidly is wrong. It looks like revenue was growing every quarter that they have reported
      Feb 13
    • DoorDash / Eng SFDasher
      Grub is declining in market share but still growing overall. Which highlights the fact that the market is huge.
      Feb 13
    • DoorDash / Eng mxbtpq
      I think what a lot of people are missing is that there doesn't have to be a single winner here. Delivery is a massive market with several untapped verticals which we are currently entering (along with our competitors I'm sure). There's enough $ to go around for all of us
      Feb 13
  • AIG / Product
    Raging

    AIG Product

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    Counseling CxOs for AI-first strategy !
    Ragingmore
    Exit on doordash is being acquired. There is no scenario in which they go public unless they find new rev sources with high gross margin. Current bus model in rev terms in mature steady state is not economically viable
    Feb 16 1
    • Cisco / Eng
      tingtongcs

      Cisco Eng

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      likely. but question is who would be looking to buy such a high valued startup ?
      Also, I think doordash folks can answer better.
      Feb 24
  • Google weebay
    Dumb money everywhere
    Feb 13 0
  • DoorDash Tj2Q8mtAI
    Lots of growth still left - expanding within US and Canada, expanding out of North America, delivering other types of goods like grocery, alcohol etc., building out drive platform (our fulfillment service for delivering anything) etc. We're still not the biggest logistics network in the US. But, hopefully, we'll get there this year or next.
    Feb 12 2
    • Cisco / Eng
      hhh222

      Cisco Eng

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      don't want to expand to asia ?
      Feb 12
    • DoorDash Tj2Q8mtAI
      I guess we will, eventually.
      Feb 12
  • Twitter Rdf34
    Is it too late to make big $$$?
    Feb 12 1
    • DoorDash Tj2Q8mtAI
      If you're asking if it is too late to join, it depends on what your expectations are. Going 10x from here will take time and we'll need to build out more verticals like food delivery to be full fledged businesses. But 2-3x in the short term is very possible.
      Feb 12