DoorDash Faces Its Latest Challenge: Wooing Wall Street

Combining with rivals to turn into extra worthwhile is “not that insightful of an observation,” Mr. Xu stated, including that he’s centered on DoorDash’s progress technique.

When the corporate reveals its financials, the potential for revenue and progress might be clear, DoorDash traders stated. They pointed to Meituan Dianping, a Chinese meals supply firm that went public in 2018 and turned a revenue for the primary time final summer season.

One investor, Ali Rowghani, stated that the corporate misplaced cash when it entered a brand new metropolis, however that prospects who tried the service tended to keep it up and use it extra.

“As the market matures, they start making money,” he stated.

Other traders stated that the marketplace for meals supply was greater than taxis and that DoorDash could possibly be greater than simply meals, ultimately delivering every kind of products and companies.

For now, DoorDash is targeted on making the meals half work. The firm is experimenting with autonomous automobile deliveries, a partnership with Chase to supply free deliveries to bank card prospects and a red-brick commissary in Redwood City, Calif., that homes kitchens for a number of eating places, together with Chick-fil-A. Its subscription service, DashPass, supplies limitless deliveries for $9.99 a month and has 1.5 million prospects.

Even so, DoorDash is battling authorized and regulatory points — from a brand new California regulation that will drive it to categorise its drivers as staff to a class-action lawsuit over its tipping and one other one over a knowledge breach.

Ala Mohammed, 37, of Daly City, Calif., stated he drove for DoorDash throughout peak dinnertime hours, when he could make as a lot as $20 an hour. Off hours, the pay is decrease, so he additionally drives for Grubhub, Lyft, Caviar, Deliv and Instacart. Mr. Mohammed stated he would proceed driving till he discovered a extra steady job.

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