Does anyone else find it balls to the walls insane that DoorDash is the number 1 food delivery company? I think people somehow forget that the company is only 7 years old. Grubhub and Seamless were the "FAANG" of food ordering for decades, Postmates had a 2 year head start, and Uber has the brand name recognition with 100M+ monthly users. How in god's name did a no-name startup overtake Seamless, Postmates, and Uber - not just overtake, but DOMINATE the industry in half a decade? Just think about that for a second. Suppose some company gets started in 2013 and overtakes Google in search - that is unheard of. Suppose some company gets started in 2013 and overtakes Facebook as a social media platform. Suppose some company gets started in 2013 and overtakes Salesforce as the CRM company for businesses. Does anyone find it mind boggling that 3 college kids with zero brand name recognition overtook Seamless, Postmates, and Uber in the logistics business? They are now the official delivery platform of the NBA. They are creating new partnerships every day. Is this a company that we should invest in for the IPO? People laughed at the idea of investing in Amazon, Tesla, and FB when they first IPO'ed. Again, a company started by 3 college kids with zero experience overtook the "FAANGs" of delivery, and became the number 1 player in the market. They overtook Uber Eats which already had billions of dollars in its pocket and top engineers/marketing. What gives??? #doordash #uber #grubhub #yelp #postmates
By offering no delivery fee via a cheap monthly membership and bleeds their investors to death.
This doesn't answer my point. Uber, Postmates, and Grubhub all have their own monthly subscription too. How did DoorDash overtake Uber and Grubhub?
I didn't know Uber and grubhub have one, I used postmates two years ago and their service fee was so high I stopped using them after one try. Grubhub is more expansive than door dash, I tried to order from both multiple times and ended up use door dash everytime. Ubereats has the shortest UI, sometimes it takes 5 seconds for a page to update. So I mostly use doordash now
Funny as nobody I know uses them. I get the impression they have a lot of regulars who order takeout heavily. Hence their #1 status might only be in volume and not customers.
What makes their model more valuable than others? It seems they had better teams than competitors
This is what I'm trying to figure out before I invest. How are they better at securing talent than Grubhub (the FAANG of food delivery for 2 decades), Postmates, and Uber? Why are they doing so much better?
DoorDash has the better name. Uber is some cab service, who wants cab drivers handling your food? What is Seemless? Grubhub is everyone's mom's delivery service - like going to Yelp for reviews. Postmates is so confusing, isn't that a company that competes against UPS, FEDEX, and USPS? That is what I think when people say "Postmates", what the hell is a Postmates... isn't it a company like DHL?
Postmates over-diversified. You could get an iPhone delivered from the Apple Store. Postmates under-invested in customer service. When a delivery goes wrong, people want compensation. I ordered a pizza that came 3 hours late (not on a special day like Super Bowl or anything like that) and Postmates refused to offer even a token credit for my next order. Seamless had a great reputation in NYC Manhattan but that operating model, which includes couriers doing deliveries purely on foot, does not work in other places. Grubhub didn't innovate in time. When DoorDash and UberEats offered live GPS order tracking, all Grubhub could do was tell you to wait with your phone in hand for the next 30-120 minutes while your order is prepared.
Do these people have better customer service?
DD sucks with their drivers being incompetent along with their CS.
Suburban focus won in a pandemic market, and they prioritized bigger baskets. All good moves, but not sure if this will scale. I’ll wait for a year ...
Well this article says the opposite of what you said. https://www.marketwatch.com/story/heres-why-doordash-is-the-most-ridiculous-ipo-of-2020-11606959747
That's a clickbait article but what does it have to do with what I said? How did DD overcome established companies with better brand names and more users in just 7 years?
Tl;dr: DD is rushing with the ipo so that there private investors and executives can cash out at the expense of unsuspecting public who will get into the ipo based on theories like yours. Bottom line is that DD is non sustainable, bleeding money even at the most opportunistic time and will probably fail as a company. Again speculation. Do you own research. I’m not your financial advisor.
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Not at all, jp picked them as the winner. Every genz and millennial has a chase sapphire or reserve so automatically uses doordash. It would almost be stupid to use anything else.
Again, JPM, the biggest bank in the entire country, chose DoorDash over Grubhub and Uber. They didn't do charity, they chose DoorDash because they are number 1. How did DoorDash become number 1? What are they doing different?