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How does it make any sense that DoorDash has a valuation of $13b when Grubhub is only worth $4b with a similar market share? DD has been discounting so heavily
by sct202 7y ago
How does it make any sense that DoorDash has a valuation of $13b when Grubhub is only worth $4b with a similar market share? DD has been discounting so heavily that they can't obviously sustain that after the VC money turns off.
- kevinyun 7y agoThat is incredibly alarming. Very reminiscent of WeWork and Regus. Only time will tell if it's a bubble that will burst. That said, I'd really love to know what I'm missing or overlooking here, as GrubHub/Seamless being 30% the value of DoorDash feels waaay off here.
- realdlee 7y agogrowth is the difference. Grubhub's market share has been shrinking for many quarters, while Doordash's has been rapidly increasing.
- d0gbread 7y agoIt's worth noting that Chase, which I believe is helping with the IPO, gave all Sapphire Reserve card holders a perk that effectively gave you 2-3 free DoorDash orders, bumping up their unique users just in time for an IPO. Feels unethical to me.