Is Doordash Valuation Really Worth of $7.1 Billion

Like many other people in the investment industry have keen knowledge regarding the updates. Many of them are right about the graph (DoorDash valuation), and acknowledge the upcoming ups and down.

Yesterday when I had dinner with my family suddenly topic pop up about the food industry and the online food delivery platform. I always want a chance to write an article about Doordash.

Though there are many such companies currently running, I decided to go for DoorDash valuation profile.

DoorDash valuation

Why DoorDash Valuation only?

The way DoorDash is raising funding from all over the world, and that couldn’t resist me to write an article about it, and it took me at least a week to find out the secrets and strategy of DoorDash. Another reason is the blog about food, cab, and rooms.

I can also write about other online food delivery but I wonder how CEO Tony Xu has done this for Doordash. What kind of promade does Tony put in his hair?

I started learning about investing, and after digging deeper I have come across many aspect, secrets and what point should we analyse before taking a final decision. I considered myself to write an article on such a topic.

Investigating the revenue growth of Doordash from 2015 to 2019,

Doordash has drastically raised the funds from all the top investor.

In an era of competition and the top internet companies are on the track, Doordash still manages to overtake Uber eats and become the second most successful food delivery startup after GrubHub. Collecting the revenue and funding history, Doordash growing faster rate than GrubHub under the same scale.

GrubHub and Doordash

Now among the world-renowned internet companies, Doordash is often compared to the food platform delivery companies such as GrubHub and uber eats many more.

DoorDash valuation
Souce: csimarket

Things haven’t been good for the GrubHub over the past few months. Even the market analogy couldn’t help the GrubHub to rise above in the economy stock.

As per the source, GrubHub can attract more restaurant and enhance the chains of delivering food. On the other hand, the rumor of bulls keep on the news and no one could predict when the market can get a turn from below to above and vice-versa.

GrubHub being rank as the most popular food delivery platform in the USA and attempting to add more service and opportunities to the driver and partner and implement fast and quality service.

“Analyst Peter Saleh says GrubHub is well positioned for more restaurant partnerships and predicts “meaningful” earnings-per-order growth in the second half of the year.”

However, the revenue of GrubHub is increasing slowly, it does gain rise 40.5% year on year, and 0.82 growth in Professional Service industry. In short, GrubHub has shown average growth in the year 2018. GrubHub grew less than the market.

Doordash market share and revenue

  • In August 2018, a company at 4 Billion Dollar valued. In Feb 2019, astonishingly in series round, Doordash funding has raised whooping $400 million led by Temasek Holding and Dragoneer Investment Group, and since then Doordash has raised market valuation becomes 7.1 billion
  • Doordash has given the brutal competition to uber eats and GrubHub
  • CEO Tony Xu says company only want to focus on the service not profit at the moment.DoorDash valuation,DoorDash valuation,DoorDash valuation,DoorDash valuation,
DoorDash valuation
DoorDash funding history from 2015-2019

Temasek Holding and Dragoneer Investment Group, Singapore investment firm make the double in Doordash within six months. The existing investor of Diordash are Softbank Vision Fund, DST Global and Sequoia Capital also participated in the round.

Doordash also extended in groceries delivery sector partnering Walmart last year. Tony Xu says he changed his vision of competition.

Food delivery service market share across the USA

In July 2018, popular food delivery services across the USA. GrubHub was top revenue share at that time with 34.4% followed by the Uber Eats 27.9%. A competitor like Doordash was 17.9% and other food deliveries also in the race to gain more share and attempt to raise funds from the various sector.

DoorDash valuation
Revenue shares between food delivery services across USA

Which is the fastest growing food delivery service in USA?

In a short time, Doordash has raised 5% of points from 12.63% to nearly 17.94% points between January and July 2018. Apparently, Doordash is highest among the competitor, and uber eats and GrubHub lost their percentage while Doordash keeps maintaining the revenue and growing.

DoorDash valuation
DoorDash performance from Jan 2018-july 2018

DoorDash is the on-demand food platform across the USA of Total Consumer Spending, Feb 2019[Updated]

DoorDash is the on-demand food platform across the USA.

Previously, GrubHub recorded most market share in food delivery platform about 40%. As it today, Doordash overtook the global competitor uber eats. Doordash process of raising funds and improvise the service efficient towards its customer.

From the previous record, Doordash almost doubled the value of 15% to 28%. On a competitor side Caviar, Postmates, and uber eats services roughly continue the same in total market share of consumer spending.

Doordash increased from 15% to 28% followed by the uber eats. Unfortunately, GrubHub failed in keeping the market share and fall in margin from 40% to 27%.

DoorDash valuation
Total Market Share of consumer spending, Feb 2019

DoorDash does deserve the $7.1 valuation, the way it’s growing and converge on the company growth rather than making a profit. Definitely, more investor will show the interest in investing, and a consumer will confer towards service.

Co-founder and CEO Tony Xu “a reflection of superior performance over the past year.” “I think the numbers speak for themselves,” Xu said. “If you just run the math on DoorDash’s course and speed, we’re on track to be number one.”


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