![]() Oftentimes, fluctuations in price are due to the expiration of something called a l ockup period-this is when company insiders, such as employees, sign an agreement that prohibits them from selling shares for a specified period of time. If you’re in this stock for the long haul though, it could be an opportunity for dollar cost averaging. Stock volatility can be particularly high in the first few months following an IPO and as a result, so can the potential for short-term losses. More About IPOsįollowing an IPO, a new stock can be subject to significant increases or decreases in market price. You can find more information on the DoorDash IPO here. Remember that all investing involves risk and that past performance doesn’t guarantee future growth. However, DoorDash faces stiff competition from competitors like Uber Eats, GrubHub, Resy, and more. Seventy-four percent of people Goodwater surveyed said that they would not stop ordering delivery if dining out returned to pre-pandemic levels. And in a survey conducted by the venture capital company, 52% of respondents said that they had ordered food delivery since the pandemic began.Īnd even as dining out returns, consumers are likely to continue ordering delivery with services like DoorDash. ![]() Since the beginning of the pandemic, DoorDash’s Gross Order Value (GOV) has increased two to three times. The decline in restaurant dining has potentially helped DoorDash, according to Goodwater. Doordash also accesses many smaller locations-such as the suburbs and smaller cities-that other services have overlooked, according to venture capital firm Goodwater Capital*. Unlike some food delivery services such as Uber Eats or GrubHub, Doordash provides restaurants with the software to fulfill orders from customers, as well as access to local customer marketplaces. DoorDash leads the industry with a market share of 37%, followed by GrubHub at 31%, Uber Eats at 21%, and Postmates at 10%. Online food delivery reportedly services generated $26.5 million in revenue in 2020, a more than 20% increase from 2019. The company had its initial public offering (IPO) on December 9, 2020, raising $3.4 billion in one of the biggest capital raises from a public offering of the year, and valuing the company at $72 billion. Both restaurants and consumers are increasingly relying on food delivery apps and websites as Covid-19 continues to limit options for dining out.ĭoorDash in particular has seen success during the pandemic.
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