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Congrats to the team! I respect what you've done so far, but I can't help wondering how investors can base their analysis on an experiment restricted to Palo A
by ar7hur 12y ago
Congrats to the team!
I respect what you've done so far, but I can't help wondering how investors can base their analysis on an experiment restricted to Palo Alto, Mountain View and San Jose. From what I see, the bulk of orders (in $) are from fellow startups ordering lunch and dinners. Where else is the world (except SF and maybe NYC) do so many companies, in such a small geography, order so much food from restaurants?
I'm not saying it's not a good business. I'm wondering if there is really room for growth (a growth big enough to justify the huge series A valuation) outside of very specific geographies.
- jconley 12y agoWell, you are talking about over a million people in that area. I'd say that's a reasonable sample size. Also, not sure we know who their clientele are. We use doordash for the office, but I also use it at home. Because of their level of service it has also become a destination site, where I go to see what they offer first rather than choosing the restaurant I want first. I imagine I am not alone.
- untog 12y agoWell, look at Seamless. It's quite possible to just have a business that focuses on these major metro areas. That said, I'd still be dubious of a company that only operates in California. Markets like Chicago and NYC are quite different.
- jvrossb 12y agoSome college towns will have a high density of students ordering food from restaurants.
- trounce 12y agoBased on the heatmaps, it looks like the customer base is highly concentrated amongst apartment dwellers and students. Having said that, we live in a house in Palo Alto and my wife is a big fan, to avoid cooking or eating out with small children :-)