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Super odd to see the company slashing jobs when they had block buster IPO last year. Puts into question what did DoorDash do after generating huge amount of fun

Super odd to see the company slashing jobs when they had block buster IPO last year. Puts into question what did DoorDash do after generating huge amount of funds during the IPO. They should have stored the funds to weather through the storm right now instead of slashing jobs and hindering company's growth! https://www.cnbc.com/2020/12/09/doordash-ipo-dash-trading-nyse.html https://www.cnbc.com/2020/12/09/doordash-ipo-dash-trading-ny... https://www.nytimes.com/2020/12/09/technology/doordash-ipo-stock.html https://www.nytimes.com/2020/12/09/technology/doordash-ipo-s...

nine_zeros 4y ago
But of course, the decision makers who made bad choices after the IPO are not the ones to get laid off.
- barelysapient 4y ago
  They never are.
- monero-xmr 4y ago
  This isn't feudal Japan and you don't have to commit seppuku for a mistake. The executives report to the CEO and the CEO to the board, and the board to shareholders. There is a process to hold management to account.
  - erehweb 4y ago
    Sort of. DoorDash has dual class shares, though, so (at least as of a year ago) the founders control the company although they don't have the majority of the shares. https://www.freightwaves.com/news/activist-investor-group-takes-aim-at-doordash-ceo-tony-xu https://www.freightwaves.com/news/activist-investor-group-ta...
laweijfmvo 4y ago
> They should have stored the funds to weather through the storm right now instead of slashing jobs and hindering company's growth! Maybe they're doing both, storing the funds and slashing jobs; what's left to "grow"? They followed the stereotypical model thus far 1. Operate at a massive loss on VC funds under the guise of user growth and acquisition 2. IPO at the peak 3. Figure out how to become profitable with a realistic business model or watch your valuation plummet They're at Step 3 right now and they haven't figured out how to make a profit yet
- jeffbee 4y ago
  Most of their funding has been shadow funding in the form of the residual value of their drivers' cars. It's a gigantic invisible input, an aspect of the business shared with Uber and Lyft.
hn_throwaway_99 4y ago
> They should have stored the funds to weather through the storm right now instead of slashing jobs and hindering company's growth! This makes no sense. The whole reason DoorDash is cutting jobs is because, like pretty much everyone else cutting, they originally hired a lot to maximize growth potential during the environment that existed last year. That environment turned out to be temporary, so now they are laying people off because they fundamentally can't support a workforce that size in today's environment. No company wants to be overstaffed (and, honestly, working at an overstaffed company sucks) if they don't think there will be a quick ramp up in business to give those people something to do.
- yrgulation 4y ago
  Who knew that remote work benefits tech companies, as their own end users get to spend more on their own apps. Yet there are tech companies advocating against remote work.

nine_zeros 4y ago

But of course, the decision makers who made bad choices after the IPO are not the ones to get laid off.

barelysapient 4y ago
They never are.
monero-xmr 4y ago
This isn't feudal Japan and you don't have to commit seppuku for a mistake. The executives report to the CEO and the CEO to the board, and the board to shareholders. There is a process to hold management to account.
- erehweb 4y ago
  Sort of. DoorDash has dual class shares, though, so (at least as of a year ago) the founders control the company although they don't have the majority of the shares. https://www.freightwaves.com/news/activist-investor-group-takes-aim-at-doordash-ceo-tony-xu https://www.freightwaves.com/news/activist-investor-group-ta...

laweijfmvo 4y ago

> They should have stored the funds to weather through the storm right now instead of slashing jobs and hindering company's growth! Maybe they're doing both, storing the funds and slashing jobs; what's left to "grow"? They followed the stereotypical model thus far 1. Operate at a massive loss on VC funds under the guise of user growth and acquisition 2. IPO at the peak 3. Figure out how to become profitable with a realistic business model or watch your valuation plummet They're at Step 3 right now and they haven't figured out how to make a profit yet

jeffbee 4y ago
Most of their funding has been shadow funding in the form of the residual value of their drivers' cars. It's a gigantic invisible input, an aspect of the business shared with Uber and Lyft.

hn_throwaway_99 4y ago

> They should have stored the funds to weather through the storm right now instead of slashing jobs and hindering company's growth! This makes no sense. The whole reason DoorDash is cutting jobs is because, like pretty much everyone else cutting, they originally hired a lot to maximize growth potential during the environment that existed last year. That environment turned out to be temporary, so now they are laying people off because they fundamentally can't support a workforce that size in today's environment. No company wants to be overstaffed (and, honestly, working at an overstaffed company sucks) if they don't think there will be a quick ramp up in business to give those people something to do.

yrgulation 4y ago
Who knew that remote work benefits tech companies, as their own end users get to spend more on their own apps. Yet there are tech companies advocating against remote work.