Delivery giant DoorDash plans IPO

Ride-hailing and delivery companies won an exception, and instead they’ll offer limited benefits such health care subsidies to drivers who clock 25 hours per week.

It’s clear DoorDash waited to start the IPO process until after the vote on California’s Proposition 22., said Wedbush analyst Daniel Ives.

But the food delivery market is “fragmented and intensely competitive,” and its competitors have made acquisitions or strategic agreements to work together, the company warned.

“In addition, certain of our competitors have recently acquired kitchens to enable them to produce and deliver food directly to consumers,” the company said.

With the novel coronavirus surging across most of the U.S. and other parts of the world, Wedbush analyst Daniel Ives sees even more growth for DoorDash and its main competitors next year.

“In a horrific backdrop, a silver lining has been, from an economic perspective, it’s been a huge positive for these workers, drivers and restaurants that could utilize companies like DoorDash in this environment.”

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