DoorDash is overvalued (compared to Lyft)
Valued at 4x Lyft. Lyft was doing >4B run-rate per year of revenue in Q4 2019 and Q1 2020. That’s 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
Ride-share is limited to commuters. Last mile logistics is unlimited to entire industries (food, retail, commerce). Amazon was just another bookstore until it overtook entire industries (Best Buy, Barnes & Noble, Whole Foods). 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.
how is doordash worth $40B while GrubHub is worth $6.5B. Doesn't make any sense to me that doordash is 7X
Grub had 80% market share less than 5 years ago and they had to do a big pivot to adapt their model to the gig economy. They are at less than 20% today and still dropping. Their numbers are a lot smaller than DD and their growth as well.
DASH is now at 67B lol what a joke !!!! I would rather buy UBER which makes money from eats and ride
Better to compare DD to UPS or FedEx. Value as a logistics provider. Funny to think a silly food app is valued more than companies with true scaled worldwide infra, airplanes, etc. DD has no loyalty. People will move to next hot thing. Congrats on the massive exit.
Lyft is overvalued compared to UBER.
DD service sucks and their policies are scummy. I just canceled my sub with them after too many canceled/wrong orders. Totally overpriced right now, would love to see someone do this space right but for now my lazy butt is just driving to pick up my own orders...
Doordash now has more market value than total value of many of the restaurants it delivers including KFC, Taco Bell, Chipotle, Pizzahut combined. It is almost as valuable as Fedex (77B). The difference is the former lost 1.9B while the latter made 1.2B in the past 9 months.
No the difference is that FedEx is at its peak and has been in existence for decades. DD Is just getting started continuing to expand.
I hope both company 🚀 🚀 so the employees can retire. We are all just trying to get out of the rat race.
You’re a good man.
🐀