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(MSN)   DoorDash looking for as much as $2.8bil in IPO. But you still have to tip the guy   (msn.com) divider line
    More: Followup, Initial public offering, Venture capital, Stock market, Corporate finance, Stock, DoorDash Inc., biggest U.S. food delivery company, Bloomberg Doordash Inc. signage  
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97 clicks; posted to Business » on 30 Nov 2020 at 3:00 PM (7 weeks ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook



14 Comments     (+0 »)
 
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2020-11-30 3:09:00 PM  
I fail to see the added value that Door Dash brings to the restaurant.  I mean, yeah, I know they deliver food which during these troubling times can increase a restaurant's customer base.  That said, why does the owner keep one or two people from the wait staff on the payroll for deliveries?  That's what we did at the pizza place I worked.  They're tipped employees so they only cost a couple bucks an hour.
 
2020-11-30 3:24:58 PM  
Let's see, you're screwing your drivers, restaurants hate your guts but use you begrudgingly, and your customer base is ridiculously fickle and will drop you in a hot second.

Are you sure 2.8 is enough?
 
2020-11-30 3:42:41 PM  

Muta: I fail to see the added value that Door Dash brings to the restaurant.  I mean, yeah, I know they deliver food which during these troubling times can increase a restaurant's customer base.  That said, why does the owner keep one or two people from the wait staff on the payroll for deliveries?  That's what we did at the pizza place I worked.  They're tipped employees so they only cost a couple bucks an hour.


I guess volume and management is the difference. With Doordash, the restaurant owner doesn't have to manage the multiple delivery workers. The order comes in they just make the order and someone comes in and picks it up. No need to figure out addresses, manage multiple workers, figure out payment, etc. The restaurant owner can just treat it like a regular take-out order and not worry about the delivery logistics.
 
2020-11-30 3:47:45 PM  

TotallyHeadless: Muta: I fail to see the added value that Door Dash brings to the restaurant.  I mean, yeah, I know they deliver food which during these troubling times can increase a restaurant's customer base.  That said, why does the owner keep one or two people from the wait staff on the payroll for deliveries?  That's what we did at the pizza place I worked.  They're tipped employees so they only cost a couple bucks an hour.

I guess volume and management is the difference. With Doordash, the restaurant owner doesn't have to manage the multiple delivery workers. The order comes in they just make the order and someone comes in and picks it up. No need to figure out addresses, manage multiple workers, figure out payment, etc. The restaurant owner can just treat it like a regular take-out order and not worry about the delivery logistics.


From what I'm told, it's like a regular take out order minus any actual profit.
 
2020-11-30 3:48:00 PM  
I can understand several circumstances in which a service like DoorDash has value to its users, but I have been ordering take out more often over the past few months trying to support local restaurants and recently at least, I haven't needed them. With just a smidge of foresight and planning, I'll call the restaurant directly and then pick up the damn order myself. Since I've been working from home since March, the excuse to run out for a 15 minute food errand is actually welcome.
 
2020-11-30 5:28:14 PM  
That'll easily be 5.2B after ghe service fee.
 
2020-11-30 5:28:38 PM  
The only reason I can see DoorDash being useful to a restaurant is if they don't have enough delivery orders to have their own delivery guy, although even then you could probably just pull a guy out of the kitchen to do orders when needed.  Maybe also if delivery orders came in unpredictable demand levels, like nothing for long stretches than a whole bunch at once.  But something that typically does delivery (pizza or chinese, say), all it does is eat into your thin profit.
 
2020-11-30 5:31:18 PM  

Killer Cars: I can understand several circumstances in which a service like DoorDash has value to its users, but I have been ordering take out more often over the past few months trying to support local restaurants and recently at least, I haven't needed them. With just a smidge of foresight and planning, I'll call the restaurant directly and then pick up the damn order myself. Since I've been working from home since March, the excuse to run out for a 15 minute food errand is actually welcome.


Getting it yourself eliminates the delivery guy not being able to find your house (or just taking forever) and also allows you to correct any obvious errors in the order right there.
 
2020-11-30 5:48:04 PM  
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2020-11-30 9:07:01 PM  
Yep. IPO while their valuation's high, before demand crashes post COVID-19. Then, watch as everyone cashes out & runs like hell before the regulations & lawsuits hit. Can't quite call it a "pump & dump" - more like a "rev & run."
 
2020-11-30 9:08:30 PM  

TotallyHeadless: Muta: I fail to see the added value that Door Dash brings to the restaurant.  I mean, yeah, I know they deliver food which during these troubling times can increase a restaurant's customer base.  That said, why does the owner keep one or two people from the wait staff on the payroll for deliveries?  That's what we did at the pizza place I worked.  They're tipped employees so they only cost a couple bucks an hour.

I guess volume and management is the difference. With Doordash, the restaurant owner doesn't have to manage the multiple delivery workers. The order comes in they just make the order and someone comes in and picks it up. No need to figure out addresses, manage multiple workers, figure out payment, etc. The restaurant owner can just treat it like a regular take-out order and not worry about the delivery logistics.


That's the sales pitch.
 
2020-12-01 12:56:28 AM  

Muta: I fail to see the added value that Door Dash brings to the restaurant.


It doesn't exist to bring value to the restaurant.

It exists to bring value to the investors in the venture capital funds that invested inplaced bets on it.

The IPO is the $2.8B exit for the VCs that got it this far.

By those measures, it has delivered the value that it was engineered to deliver.

Killer Cars: I have been ordering take out more often over the past few months trying to support local restaurants and recently at least, I haven't needed them. With just a smidge of foresight and planning


Fark user imageView Full Size


vs

Cajnik: [ubereats: [but we know how most consumers farkin behave in the real world] 425x425]


Fark user imageView Full Size


And that's why restauranteurs get farked, deliverators get farked, but some VCs get a $2.8B payout.
 
2020-12-01 8:24:21 AM  
I've seen a number of "ghost kitchens" pop up lately on DoorDash (a good example being "It's Just Wings" and "It's Just Pasta") where no actual location is available to dine in, but delivery only.

With many locked inside, I would say this is a smart business move on DoorDash's part. However, (fingers crossed!!), this pandemic will eventually be over, people will emerge from their basements and caves, and deliveries/sales will plummet.
 
2020-12-02 1:50:59 AM  

Muta: I fail to see the added value that Door Dash brings to the restaurant.  I mean, yeah, I know they deliver food which during these troubling times can increase a restaurant's customer base.  That said, why does the owner keep one or two people from the wait staff on the payroll for deliveries?  That's what we did at the pizza place I worked.  They're tipped employees so they only cost a couple bucks an hour.


I worked for a Point of Sale company (which is essentially what DD is) and I can give you a few insights.

1. You get your menu uploaded and maintained online. This is actually a pretty significant task, with constantly shifting coupons, promos etc. When I worked for a similar company we used to have 2 full-time employees to do this for customers, and we only supported a couple thousand stores at the time.

2. You get equipment in the store to receive, print and manage your income from DD. This is part of the sign-up cost.

3. You essentially get employees that you do not have to pay. Instead DD takes a cut. What is intriguing is that cut is a sliding scale. So the higher amount the restaurant pays, the smaller the delivery fee and higher listing on the page. This is like google adsense in a way.

4. You gain an entirely new customer base with no marketing costs. You suddenly show as available to the delivery/pickup area. 

A few additional notes:
Stores tend to like DoorDash, as traffic increases. To fight the 'cut cost' they can have higher prices online vs. in store. There are a couple local pizza joints that do this. I have no problem with that. Restaurants that are not prepared for the extra load, are the ones that have the troubles at first. But there are huge numbers of stories from restauranteurs that sing the praises of the web order systems online. 

You can actually sort of see this locally if you pay attention, all of a sudden you'll notice the 'successful' stores listing on multiple services at the same time.
 
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