DoorDash is overvalued (compared to Lyft)
Dec 10, 2020
13 Comments
Valued at 4x Lyft.
Lyft was doing >4B run-rate per year of revenue in Q4 2019 and Q1 2020.
Thatโs 2x DoorDash in the best of times. Currently DD is doing 2.5B run-rate.
DoorDash will have trouble sustaining growth post-pandemic; could even go negative.
The market for delivery is more competitive than ride-share, and margins are lower.
tl;dr: smaller market, more competition, lower margins.
Target for Lyft: 25B
Target for DD: 15B
comments
All the best to you too!
And DD is just a better run company than Lyft, if you look at their financials, they are crazy efficient when it comes to cash burn. They keep expanding. Lyft at best is fighting for dear life to be number 2.
DD has no loyalty. People will move to next hot thing. Congrats on the massive exit.