DoorDash has almost the same MarketCap as Uber

Google
fsS3v

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fsS3v
Nov 23, 2021 17 Comments

DD only does food/grocery delivery and only has us market right? On the other hand uber has everything DD has and on top of that, uber has freight, ride sharing, etc and runs globally by having for example didi stocks. How is DD not overvalued?

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TOP 17 Comments
  • Amazon
    lHWD86

    Go to company page Amazon

    lHWD86
    People like new gf over ex
    Nov 23, 2021 0
  • I'm biased obviously.

    OPs post just lists possible markets, and is correct that DD largely does not participate in those markets. Yet.

    That "yet" is probably why the market values DD and Uber similarly.

    Let's look at the main market where we compete - US food delivery. We executed for years against much better funded companies, to arrive at market dominance with better retention and margins. Ref: https://secondmeasure.com/datapoints/food-delivery-services-grubhub-uber-eats-doordash-postmates/

    Could we do it again in those untapped markets? Maybe, maybe not. It's a reasonable gamble though. And hey look we are winning US convenience a year after starting 7 years behind the market leader - https://trends.edison.tech/research/convenience-store-delivery-sales.html

    There's a comment about can DD just copy Uber blog, and some comment about design. That glosses over all the hidden stuff which is not visible but critical (assignment algorithms, partnerships, consumer retention, dasher pay calculators, everything). It's like saying just copy the HTML on the google search page, it's largely irrelevant.

    So yeah. I think DD is undervalued. But what do I know, I just have access to info which is not publicly available.
    Nov 24, 2021 2
  • I don’t know how different would the answer be from, “nobody knows”.

    Probably net income of DD is -101M whereas for Uber, it’s -2.5B. That would freak out investors I guess? But that’s not the only reason.
    Nov 23, 2021 3
  • That's like comparing Google with Yahoo back in the day. Google was just a small search page but Yahoo had everything.
    Google focused on one thing and executed while Yahoo was too bloated and leaked valuable talent to Google.
    Nov 25, 2021 4
    • DoorDash
      playmaker7

      Go to company page DoorDash

      playmaker7
      I’ve never thought about this analogy before I joined DD. But working with so many ex-ubers at DD changed my mind … a lot of ex-ubers decided to join DD even post IPO
      Nov 25, 2021
    • Uber
      JerryKuo.

      Go to company page Uber

      JerryKuo.
      Probably someone hit pay cliffs and jump to enjoy up leveling. Don’t know what stats looks like there but out of the eng folks I worked with who left Uber for various reasons over the years - only one went to DD
      DD recruiters are working pretty hard that they email us 4, 5 times a year, I personally just declined at first sight, but someone may join 🤷‍♂️
      Nov 25, 2021
  • Uber
    Badabing3

    Go to company page Uber

    Badabing3
    It's beyond stupid, and DD is getting desperate with overpriced acquisition of Wolt
    Nov 23, 2021 2
    • Google
      fsS3v

      Go to company page Google

      fsS3v
      OP
      How do Uber Eng view doordash’s Eng? I thought they just need to copy Uber’s Eng blog to deliver
      Nov 23, 2021
    • Uber
      unXD11

      Go to company page Uber

      unXD11
      yeah easiest way is to fast follow on design, so the apps feel kind of samey.

      There’s some questionable stuff like dipping into dashers’ tips to boost the bottom line, adding restaurants without approval that is unique to DD, but those are more execution issues than design decisions.

      Valuation doesn’t really make sense comparatively (see Rivian), but then again that’s true all over tech. Things will tend to even once people realize that Uber is undervalued relative to competitors.
      Nov 23, 2021