- Coming on WED in NYSE
- Largest food delivery network
- 50% of USA market
- Raising $3.1B via 33m shares/IPO
- 385B outstanding shares including options
- Market Valuation $37B
- 3X LYFT and 5X Grubhub
- Same as Chipotle
- Revenue growing 225% YoY
- Not profitable ($149 this year)
- $534M losses last year
- 543 million orders in last 9 months
- Poised at 15X sales
- Same category as UBER & LYFT
- NY/CA regulatory issues
- Payment of tips – negative publicity
- IPO sexy due to pandemic
- Growth would decline in the future
- Sector is getting tough & competitive
- Uber’s revenue $3.5B for 9 mins (+96%)
- Delivery platforms becoming expensive
- Real test when restaurants operating higher/fuller capacities after vaccines
Shares would be priced close to $100!!
After iteration of price revisions by bankers!
Bottomline: Doordash seems like becoming public at the perfect moment. It can’t get better than this. Jump now and pay premium for this hyper growth phase or wait till pandemic is over as the competition intensifies and growth decelerates. In this industry, the cost to switch between delivery platform is low for all parties consumers, serving chains, merchants and drivers (independent contractors).
Revenue growth projections are 222% this year, 56% next year, and 21% in 2022.
Doordash vs Airbnb IPO?
Airbnb is a reverse play. Due to reopening, it should see a surge in demand when consumer and business travel begins to revive postpandemic. DoorDash, by contrast, has been a Covid winner (just like Zoom).
Additional disclosure: Disclaimer: The information presented in this article is for informational purposes only and in no way should be construed as financial advice or recommendation to buy or sell any stock. The author is not a financial advisor. Please always do further research and do your own due diligence before making any investments. Every effort has been made to present the data/information accurately; however, the author does not claim 100% accuracy. The stock portfolios presented here are model portfolios for demonstration purposes.
