- DoorDash has grown because of Covid. When that ends, people will go back to work (and order less), go to grocery stores more (and order less) and importantly, go out to eat (and order less). DoorDash is a growth company, and when growth slows, that hurts the perception.
- DoorDash has gotten to some semblance of reduced losses due to its ability to pool order deliveries. That goes out the window pretty quickly if volumes, especially suburbs go down. - DoorDash’s DashPass deals with Chase are coming to an end in the next few months. Am I really going to be buying DashPass, I doubt it.
- DoorDash has 1 business line - food delivery. Uber has Rides (highly profitable), Eats (not shabby but not great), micro mobility (ok ok) etc. DoorDash is a worthy competitor, but it is not worth anywhere close to Uber. Don’t let the market tell you otherwise
- DoorDash has been charging merchants 30%, mostly because restaurants don’t have much of a choice. That changes quickly when traffic returns to dine-ins. And if there’s one thing that DoorDash has always won on, it's their wide range of selection.
My prediction: DoorDash will be roughly at $80/share within the next 6 months based on comparable business value at Uber (obviously DoorDash has a much larger share than Eats).
Submitted December 09, 2020 at 06:24PM by singhalpriyank https://ift.tt/2VVZMxg
