Don’t Dash to DoorDash

The economy and the stock market have been see sawing their way to 2020, yet somehow we’re in the midst of an IPO mania. As more and more people take interest in day trading, companies have realized they can obtain cash swiftly by going public. It seems like a repeated topic, but now we’ve got DoorDash hitting the market and it’s important to talk about.

With so many people trapped at home, the need for food delivery is greater than ever. DoorDash sounds like a golden opportunity until you realize it isn’t. The food delivery space is SO crowded. Not only is there UberEats and GrubHub, the clients of these companies don’t even want to work with them. Why? They charge massive service fees which eat up a ton of profits for restaurants as they struggle to stay afloat. Not only is there that obstacle, already established restaurants can accomplish delivery themselves! Despite UberEats, GrubHub and DoorDash’s pleas, people aren’t really scrolling through one of their sites over the other like Netflix compared to Hulu and Apple TV. People can either Google what they’re in the mood for or have their comfort options.

There isn’t one leading company for delivery and people can get delivery from their favorite restaurants without using any of these delivery services. Not only do restaurants prefer it this way, customers do since they are ALSO being charged a fee for using the service.

DoorDash seems like an intriguing option given these wild times, but when it’s easier and more inexpensive to go around them in addition to its competitors, why bother?