How would u value it vis a vis Uber. I know its not a pureplay delivery company but Uber does seem to be cheaper valuation wise n offers a more comprehensive package with mobility on top as well
Nice read on Doordash, but some things I'll flag out here:
Firstly your bull case argues simultaneously that:
(A) delivery is too complex for AI to handle for decades which supports the moat,
and (B) AI will allow DoorDash to run on a fraction of its current workforce, driving margins to 35%+.
These can't both be true. DoorDash's major cost drivers are dasher payments, insurance, and logistics ops and not software engineers. If the complexity argument is right, the margin expansion thesis is significantly weaker, and vice versa.
Also, the Booking.com margin analog has a structural problem I want to point out: Booking.com has zero operational logistics. Its margins are high precisely because hotels manage their own inventory and guests self-serve.
But DoorDash coordinates physical last-mile delivery at every order. This is a permanent structural cost that doesn't scale away the way software unit economics do.
I don't disagree with you, and not trying to push a bear thesis, but just pointing out things important for readers to note.
How would u value it vis a vis Uber. I know its not a pureplay delivery company but Uber does seem to be cheaper valuation wise n offers a more comprehensive package with mobility on top as well
I believe DoorDash is cheaper given the growth rate, and dominance in the delivery market.
Uber’s mobility business is valued conservatively due to autonomy while its delivery business doesn’t get much premium as it trails DoorDash.
Uber is cheap, I don’t object that but Doordash is a no brainer.
Nice read on Doordash, but some things I'll flag out here:
Firstly your bull case argues simultaneously that:
(A) delivery is too complex for AI to handle for decades which supports the moat,
and (B) AI will allow DoorDash to run on a fraction of its current workforce, driving margins to 35%+.
These can't both be true. DoorDash's major cost drivers are dasher payments, insurance, and logistics ops and not software engineers. If the complexity argument is right, the margin expansion thesis is significantly weaker, and vice versa.
Also, the Booking.com margin analog has a structural problem I want to point out: Booking.com has zero operational logistics. Its margins are high precisely because hotels manage their own inventory and guests self-serve.
But DoorDash coordinates physical last-mile delivery at every order. This is a permanent structural cost that doesn't scale away the way software unit economics do.
I don't disagree with you, and not trying to push a bear thesis, but just pointing out things important for readers to note.
😂