4 ms·
Haven't read the S-1, and won't be investing, but I can give you another way of looking at it. You do an IPO to scale. Once you scale, the relative costs of sy
by ArnoVW 6y ago
Haven't read the S-1, and won't be investing, but I can give you another way of looking at it.
You do an IPO to scale. Once you scale, the relative costs of systems and engineering 'disappears'.
In terms of profitability. Everyone is used to success stories of 50% margin. That's not the norm though. In retail 8% is not bad. Especially since you're hoping to get 8% of a huge market.
- NationalPark 6y agoIf they had an 8% margin, or expected to have one soon, it would be a great business. But you only get to those numbers using their non-GAAP metrics. None of that really matters/is surprising though, obviously investors know this but speculate that future growth and the changing market will one day result in real margins. Food delivery has been profitable on a small scale since forever, it definitely seems plausible that you could do it on a large scale and makes loads of money.