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I have worked at TikTok US core tech for 3 years. AMA.
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Doordash went public at $50 billion+ valuation last week. The craziest part? It is it is likely a bargain. Time for a post. 1) Some history: Doordash was founded in 2013 by Tony Xu, Evan Moore, Andy Fang and Stanley Tang. At that time it was known as Palo Alto Delivery service. 2) From the beginning the founders envisioned Doordash as a logistics business and not food delivery company. However, they knew that food delivery was the toughest frontier because of high customer expectations, lower margins and existing competition 3) To differentiate themselves, they focused on selection and suburbs. This is contrary to the existing wisdom at that time that food delivery will work only in big cities. While Uber, Grubhub and Postmates battled over cities, Doordash took over the suburbs with almost no competition. 4) To win the suburbs, Doordash needed a wide selection. They aggressively partnered with national merchants and did everything they could to keep them. 5) Its hard to direct a ship if everyone is not aligned. While the remaining three founders saw the long term potential of Doordash, Evan Moore thought of Doordash as an Uber for X company with the best case outcome of an acquisition. Tony, Andy and Stanley quickly removed Evan Moore. Note this is incredibly hard to do and needs enormous conviction at an early stage. 6) One key hiring strategy Doordash had was to never overpay for talent. Unlike companies like Uber, Stripe and Airbnb, who paid significantly above market to attract engineers, Doordash paid at market incentivizing new employees via stock growth. This aligned everyone in the company and reduced politics and bloat rampant in Uber and Airbnb 7) Many people still see Doordash as a food delivery business in the US. This is only a fraction of their overall business. They have already built out mature business units such as Doordash Drive (white label delivery solution), Doordash Groceries, Dashpass and Doordash Button. They are also available in Canada and Australia. With a massive war chest from the IPO, they can continue to grow aggressively for next 3-5 years. #tech #ipo
Is this why their app keeps crashing when I try to place an order?
Based on a quick Google May 2019, Doordash has the largest market share in the app food delivery market at 27.6%. It is followed by GrubHub and UberEats at 26.7% and 25.2% respectively. Postmates has the lowest market share at 12.1%. January 2020: DoorDash captured 33% of the U.S. market, Grubhub 32%, Uber Eats 20% and Postmates 10%. October 2020: doordash has 45% of the market ?? That's pretty crazy growth!
It’s 50% now
Wait till the free shipping on all the chase cards runs out
I’m biased but good post that gives people insight into more verticals than just food delivery. Other verticals we have are pickup (yes this is its own vertical), doordash for business, and more coming that I can’t mention
Did u work for dd or going to work for dd ?
No
How did u get some inside info esp about the 4th founder ?
Don't they all have those verticals: Uber and Grubhub?
Not yet atleast
LOL https://twitter.com/CitronResearch/status/1339646449152262144?s=20
I wonder if they will have the Uber situation where the employees will sue because by the time lock up expires, the stock will likely tank.
2 things about stocks: 1. Great business 2. Price is right You might have sold us all and the public on #1 You haven’t sold us anything on #2
Agreed. Even great businesses can be over prices. Price discovery is a process which people smarter than me are working on. From my experience, in the long run for great businesses, the price today is cheaper than the price 5-10 years down the line.
For every Amazon and Facebook, there was Groupon and Zynga. Though the latter was recently saved.
Doordash app is far better than postmates ,thats the only reason I use it. Simple to use and does the necessary .I am sure they will have a well thought management
I’ll admit the apps can use a lot of work but to be fair, we had like 5-8 engineers working on each platform up until this year. We expanded our engineering teams by a lot so hopefully we can improve a lot of it
Or, their stock will tank as lockup expires because the app is garbage and the delivery model is broken for so many reasons. 🤷♂️
Please elaborate we delivery model is broken, just pricing?
Can you provide evidence on why you think the delivery model is broken?