Wednesday, March 3, 2021
Home Technology DoorDash Reveals I.P.O. Filing

DoorDash Reveals I.P.O. Filing


DoorDash, however, is no longer burning through cash. In the first nine months of the year, its business generated $315 million of cash; in the same period of 2019, it consumed $308 million of cash.

DoorDash faces labor questions because of its use of contractors. This month, the company notched a political win with the passage of Proposition 22, a California ballot measure that exempted it, Uber, Lyft and others from a law that would have required them to treat their drivers as employees.

The company is also dealing with steep competition and consolidation in food delivery, where customers, restaurants and drivers are not particularly loyal to one competing service over another. DoorDash’s prospectus named four major competitors and said its “fragmented and intensely competitive” market was a risk for investors.

In June, rival Grubhub agreed to sell itself to Just Eat Takeaway, a European service, for $7.3 billion. A month later, Uber acquired Postmates, a smaller competitor, for $2.65 billion. DoorDash had entertained deal talks with Postmates, Uber and Grubhub over the last year, but has remained independent.

As social distancing rules have continued, restaurants have struggled to make ends meet on delivery apps. In April, DoorDash temporarily cut its primary fees for independent restaurants, which it said cost it around $120 million. On Thursday, it announced a $200 million pledge for programs to help restaurants and delivery drivers.

DoorDash was created by Mr. Xu, its chief executive, along with Stanley Tang, Andy Fang and Evan Moore in a business school class project at Stanford University in 2013. The company, attracting critics and struggling to raise funding in its early days, has not followed a smooth trajectory.



Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -

Most Popular

Oppo F19 Pro+, F19 Pro India Launch Set for March 8, Specifications Leak

Oppo F19 Pro+ and Oppo F19 Pro launch in India is set for March 8, the company has announced. Meanwhile, specifications and renders...

Crude oil prices could come under short-term pressure

There are unmistakable indications that the relentless rise in crude oil prices — especially seen in February — may be ending at least...

TikTok calls in outside help with content moderation in Europe – TechCrunch

TikTok is bringing in external experts in Europe in fields such as child safety, young people’s mental health and extremism to form a...

Volvo plan to go fully electric by 2030 and only sell cars online | Engadget

Volvo will only sell electric cars by 2030, ending gas- and diesel-engine sales sooner than other major automakers, the company announced. It also...

Recent Comments

Close Bitnami banner
Bitnami