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Last week, DoorDash warned customers that no-tip orders might result in slower food deliveries. Some Dashers, or drivers, said the new prompt was another example of DoorDash asking customers to subsidize driver pay. AdvertisementAdvertisementDoorDash is warning customers who don't tip with a prompt that tells them orders might be slower. Many people said DoorDash, not customers, should pay drivers better wages. In June, DoorDash started sending tip "nudges" to customers, reminding them that they could increase tips for 30 days after a delivery.
Persons: DoorDash, Sergio Avedian, Guy, , Zach Snider, Snider, Dashers, he's, Meredith Sandland, Sandland, Carl Orsbourn, Kim'ssidemoneyplans Organizations: Service, YouTube Locations: Los Angeles, Washington, Jersey, Orange County , California
DoorDash shares jump 16% on guidance, narrowing net loss
  + stars: | 2023-11-02 | by ( Jake Piazza | In | ) www.cnbc.com   time to read: +2 min
DoorDash shares jumped over 16% Thursday, a day after the company beat Wall Street's top- and bottom-line expectations. The company reported $2.2 billion in revenue, ahead of the $2.1 billion analysts were expecting, according to LSEG, formerly known as Refinitiv. It posted a loss per share of 19 cents, beating the consensus expectation of a loss per share of 40 cents. DoorDash reported a net loss of $73 million, an improvement from the $295 million net loss, or a loss of 77 cents per share, it reported in the year-ago quarter. DoorDash also reported 543 million total orders, up 24% year over year from 439 million orders, though that's down from the 27% growth in the year-ago quarter.
Persons: Tony Xu, DoorDash, Wall, Xu, haven't Organizations: DoorDash Inc, Street, Tech, JPMorgan, U.S ., CNBC PRO Locations: Laguna Beach , California, U.S
Gig workers for Instacart, DoorDash, and other apps tend to have their favorite YouTubers. Two gig workers with followings on YouTube told Insider about how they decide what to talk about. Like many gig workers, Sabo started doing gig work full-time in 2020 as demand for delivery shot up. He also sells tools for new gig workers, such as a spreadsheet to help them calculate their earnings. Some gig workers are quitting the industry, citing falling earning potential on many of the apps and slowing demand for delivery.
Persons: , hadn't, DashingTrader, DashingTrade, Mike Sabo, Mike, Sabo, he's, it's, I've Organizations: Instacart, YouTube, Service, DoorDash, Uber Locations: DoorDash, California
Uber announced on Wednesday that its Uber Eats app now allows customers to order from two stores at the same time. Uber said it's part of an effort by Uber to be more green and to help save customers money. It may help the company keep customers from using competitors like DoorDash, which has had a similar feature since 2021. Unlike DoorDash's option, Uber Eats allows you to add from a secondary location before checkout. Once you finish choosing food from your first location, you'll see a notification bar that says "Bundle another store" which lets you add goods from somewhere else.
Persons: Uber Organizations: CNBC
Instacart shares rose 12% in their Nasdaq debut on Tuesday after the grocery delivery company's long-awaited IPO. The stock initially popped 40% to open at $42, but closed at $33.70 as investors locked in their initial gains. At $11.2 billion, Instacart is valued at about 3.9 times annual revenue. Food delivery provider DoorDash , which Instacart named as a competitor in its prospectus, trades at 4.1 times revenue. Uber's stock trades for less than three times revenue.
Persons: Instacart, Andreessen Horowitz, Rowe Price, company's Uber, Fidji Simo, CNBC's Deirdre Bosa, It's, Brandon Leonardo, Maxwell Mullen, Apoorva Mehta Organizations: Nasdaq, Software, Kroger, Costco, Sequoia, Fidelity, Target, Walmart Locations: Tuesday's, U.S, Amazon
DoorDash stock could surge thanks to moderating food inflation and market share gains, according to Mizuho Securities. The firm upgraded the food delivery stock to buy from neutral in a Sunday note, with a new $105 per share price target up from $90 per share. DoorDash stock has surged nearly 66% from the start of the year. DASH YTD mountain DoorDash stock has added more than 65% from the start of the year. "In conjunction, moderated food inflation and resilient consumer spending provide incremental support to our view."
Persons: James Lee, DoorDash, Lee, — CNBC's Michael Bloom Organizations: Mizuho Securities Locations: Europe
At the top of the latest IPO price range, the enterprise value would be 16x EBITDA. The right valuation for Instacart depends on where the ultimate rate of sales growth falls, Einhorn said. Including the cash on the company's balance sheet, that values Instacart at about three times EBITDA – way below DoorDash's valuation. Even that would value the company at only seven times 2025 EBITDA, and about 14 times EBITDA from the last four quarters, still a sharp discount to DoorDash. So in a twist few would have predicted in 2020 or 2021, Instacart is trying to go public as a value stock, carefully managed to wring the best results from potentially modest growth.
Persons: Instacart, , Einhorn, Matt Einhorn, Mark Mahaney, DoorDash, Nicholas Cauley, Cauley, Covid, Nick Giovanni, Giovanni, EBITDA Organizations: Renaissance Capital, San Francisco, ISI, Walmart, Kroger, Aldi, Omicron, Gross Locations: DoorDash, EBITDA, York
Instacart, the grocery-delivery company that saw its business boom during the pandemic, priced its long-awaited IPO at $30 a share on Monday, and will become the first notable venture-backed tech company to hit the U.S. public market since December 2021. There were 22 million shares sold in the initial public offering, with 14.1 million coming from the company and 7.9 million from existing shareholders. Instacart co-founder Apoorva Mehta owns shares worth over $800 million, and is selling a small portion of them in the IPO. The company said co-founders Brandon Leonardo and Maxwell Mullen are each selling 1.5 million, while Mehta is selling 700,000. Former employees, including those who were in executive roles as well as in product and engineering, are selling a combined 3.2 million shares.
Persons: Instacart, Andreessen Horowitz, Rowe Price, Apoorva Mehta, Mehta, Fidji Simo, Simo, Goldman Sachs, JPMorgan Chase, Brandon Leonardo, Maxwell Mullen Organizations: Nasdaq, Kroger, Costco, Sequoia, Fidelity, Target, Walmart, Facebook, JPMorgan Locations: Amazon
DoorDash said on Thursday that it will transfer its listing from the New York Stock Exchange to the Nasdaq, a potential blow to the NYSE. "We are delighted to join a community of leading technology companies with our transfer to Nasdaq," DoorDash Chief Financial Officer Ravi Inukonda said in a statement. The NYSE has been attempting for years to secure more tech company listings and gain share against the Nasdaq. DoorDash initially began trading on the NYSE in December 2020, with a price of $182 per share. Its debut came at a popular time for tech IPOs, within months of the IPOs of Airbnb , Roblox and Wish , the discount marketplace.
Persons: Tony Xu, DoorDash, Ravi Inukonda, University of Florida's Jay Ritter, DoorDash's, Instacart Organizations: DoorDash Inc, Street, Tech, New York Stock Exchange, Nasdaq, NYSE, University of Florida's, Cloud, Big Board Locations: Laguna Beach , California
With retail investors holding individual stocks for less than a year on average, recent history suggests they could lose money, a Reuters analysis shows. Even institutional investors invited to buy into those 10 IPOs before trading would be down an average of 18%. "For almost all retail investors, buying and holding a low-cost index fund is the best strategy." Arm's debut and an upcoming listing from grocery delivery service Instacart are expected to rejuvenate a lackluster IPO market which has slowed over the past two years due to volatility and economic uncertainty. Instacart will be offering some retail investors a chance to buy into its IPO via underwriter fintech company SoFi, its prospectus said.
Persons: Dado Ruvic, Japan's SoftBank Group's, Jay Ritter, Marco Iachini, it's, Ritter, Lance Tupper, Anirban Sen, Echo Wang, Michelle Price, Richard Chang Organizations: REUTERS, Retail, Holdings, Reuters, U.S, Investors, University of Florida, Nvidia, GameStop, Vanda Research, Instacart, IPOs, Thomson Locations: British, New York
Instacart's recent IPO filing delivered Wall Street some surprising insight into the grocery delivery business, and how competitors Uber and DoorDash 's could better harness advertising opportunities to unlock profit. Last week, the grocery delivery company brought an end to the tech IPO drought when it filed to go public on the Nasdaq Stock Market . And according to some Wall Street analysts, the filing revealed a better positioned company than expected, and one further along on the road to profitability than Uber and DoorDash at the time of their respective IPOs. Filings also revealed insight into customer behavior that both DoorDash and Uber can apply to their budding grocery segments. 'Cautious read-throughs' Despite widespread optimism about the long-term outlook for the grocery delivery business, the filing also revealed some near-term growth concerns for grocery delivery orders.
Persons: Uber, Bernstein, Nikhil Devnani, bode, Bernstein's Devnani, Lloyd Walmsley, Walmsley, — CNBC's Michael Bloom Organizations: Nasdaq, UBS, DASH
Instacart’s mixed bag has valuation opportunities
  + stars: | 2023-08-28 | by ( Anita Ramaswamy | ) www.reuters.com   time to read: +4 min
If it doesn’t push valuation too hard, a public listing could be seamless. Instacart booked net income in 2022, a rarity for a growth company hitting the public market. That brings Instacart’s enterprise value to roughly $17 billion, less than half of what it was worth in 2021 but still higher than the internal valuation it inked last year. Follow @AnitaRamaswamy on XCONTEXT NEWSGrocery-delivery business Instacart filed paperwork to go public on Aug. 25 under the formal name Maplebear. The company, which did not share its target price range in the filing, grew revenue by 39% in 2022 to $2.6 billion.
Persons: Eric Cohn, Cheney Orr, Fidji Simo, Instacart, Simo, Apoorva Mehta, Domino's, Lauren Silva Laughlin, Sharon Lam Organizations: Safeway, REUTERS, Reuters, Nasdaq, Kroger, Aldi, Costco Wholesale, Companies, Thomson Locations: Tucson , Arizona, U.S, Cava
The company outlined its business as well as a plan to sell $175 million in shares to PepsiCo. The grocery delivery service filed a prospectus, a detailed document that outlines Instacart's business and IPO ambitions, on Friday afternoon. Instacart will also sell $175 million in Series A preferred stock to beverage giant PepsiCo as part of a private placement, according to the document. Instacart said its average order value was $110 in 2022In total, Instacart works with 80,000 stores. As of June 30, 2023, it has 5.1 million Instacart + members.
Persons: Instacart Organizations: SEC, PepsiCo, Service, NASDAQ Global, Publix, Costco, Aldi, CVS, Walgreens, Walmart, DoorDash Locations: Wall, Silicon
Delivery orders are typically more expensive, thanks to added fees and tips for delivery drivers. But delivery orders have also become an important contributor to restaurants' revenue because customers' receipt totals are higher. Cava's second-quarter sales growth wasn't hurt by softening delivery sales, but the Mediterranean chain's full-year forecast was cautious. After same-store sales growth of 28.4% for the first quarter and 18.2% for the second quarter, Cava is anticipating same-store sales growth of just 13% to 15% for the full year. Uber said its second-quarter delivery sales rose 14%, while DoorDash's total orders climbed 25%.
Persons: Sweetgreen, Mitch Reback, Cava, Tricia Tolivar, didn't, Uber Locations: Cava, North America
Some delivery workers have tried to increase their gratuity by asking DoorDash customers for higher tips mid-delivery. As a result, the average food delivery tip has increased by 20% from 2020 to 2022, Uber Eats told Insider. With tips and base pay, DoorDash said on average, Dashers make $25 per hour on active deliveries. Many gig delivery workers make below minimum wage and say their earnings have fallen since the height of the pandemicA 2020 study found many gig delivery workers are struggling to make minimum wage. The survey of gig workers from the Economic Policy Institute found that about 14% of gig workers made less than the federal minimum wage, and 29% earned less than their state's minimum wage.
Persons: DoorDash, Austin Haugen, Shroff, Heather Taylor, Dashers, DoorDash's, Instacart, Uber, Carsten Koall, Sergio Avedian, Guy Organizations: Service, Starbucks, Consumers, Base, Economic Policy Institute Locations: Wall, Silicon, Corpus Christi , Texas, Los Angeles
DoorDash is seeing a surge in non-restaurant orders from new customers, including grocery and flower deliveries. The delivery company has 100,000 retail stores on its app, surpassing Instacart's 80,000 merchants. The company said more new customers are turning to the app for non-restaurant orders as DoorDash has grown its retail selection to more than 100,000 stores. In July, online grocery sales dropped 7% to $7.2 billion compared to July 2022 , according to the latest monthly Brick Meets Click/Mercatus Grocery Shopping Survey. Driving the downturn was delivery sales, which decreased 13.3% to $2.6 billion , according to the July survey released August 9.
Persons: Tony Xu, DoorDash, Xu, Grubhub, Uber, It's, Petco, Staples, Brittain Ladd, Instacart, confidentially Organizations: Service, Albertsons, Aldi, Target, Walgreens, Dollar Locations: Wall, Silicon, Stanford, PetSmart, North America
They were cut open pretty bad," Chloe told Insider in an interview. An attorney for Young didn't respond to requests for comment, but court records show he pleaded not guilty to the new set of charges. Chloe is accusing Doordash of negligence, alleging the delivery company failed to conduct an adequate background check on Young. According to Kendall Shortway, a lawyer representing Chloe, Doordash outsources many background checks to another tech company, Checkr. "Between the two of them, somebody dropped the ball," Shortway, an attorney at the law firm Morgan & Morgan, told Insider.
Persons: Doordash, it's, Chloe, McDonald's, Larenzo Young, Young, — Young, Chloe's, Young didn't, Kendall Shortway, Shortway, Morgan, Checkr, Uber, Lyft, Neighbors, weren't Organizations: Police, Morning, Doordash, Companies Locations: Doordash, Coffee County , Georgia, She's
An ex-Google recruiter told CNBC most job-seekers are skipping an important step. Nolan Church, a former recruiter, said applicants should send a follow-up message after applying. Nolan Church, a former Google and DoorDash recruiter, told CNBC that almost "everyone fails" when it comes to sending a post-interview follow-up. The former Google recruiter said on LinkedIn the trick would help get résumés "to the top of the stack." The former recruiter previously told CNBC applicants have "zero chance" of moving forward if their résumé is full of "text bricks."
Persons: Nolan Church, Church, it's, Jobs Organizations: CNBC, Service, Google, LinkedIn, Continuum Locations: Wall, Silicon
A DoorDash delivery person is pictured on the day they hold their IPO in the Manhattan borough of New York City, New York, U.S., December 9, 2020. REUTERS/Carlo AllegriAug 2(Reuters) - DoorDash (DASH.N) raised its annual core profit forecast for a second time and beat quarterly revenue expectations on Wednesday as orders for groceries and food surged despite higher prices, sending its shares up nearly 6% in extended trading. DoorDash expects a key measure of profitability, adjusted EBITDA, between $750 million and $1.05 billion, compared to the prior outlook of $600 million to $900 million. DoorDash's revenue rose 33% to $2.13 billion, beating expectations of $2.06 billion, according to Refinitiv data. Net loss narrowed to $170 million, or 44 cents per share, in the quarter, compared to $263 million, or 72 cents, a year ago.
Persons: Carlo Allegri, Ravi Inukonda, DoorDash, Granth, Arun Koyyur Organizations: REUTERS, DoorDash, Uber Technologies, Thomson Locations: Manhattan, New York City , New York, U.S, DoorDash, Bengaluru
The company is calling for revenue ranging between $610 million and $645 million, while analysts called for $632 million, per Refinitiv. Qualcomm posted $8.44 billion in adjusted revenue, while analysts polled by Refinitiv forecast $8.5 billion. Zillow forecasts revenue of $458 million to $486 million, while analysts polled by FactSet are calling for revenue of $488.1 million. The company reported revenue of $494 million in the second quarter, while analysts polled by Refinitiv anticipated $473 million. The company posted $533 million in revenue, while analysts polled by Refinitiv sought $518 million.
Persons: Vlad Tenev, Baiju Bhatt, Etsy, DoorDash, FactSet, Qorvo, Refinitiv, Tripadvisor, Darla Mercado Organizations: Refinitiv, Qualcomm —, Qualcomm, MGM Resorts, MGM, PayPal, Refinitiv . Revenue, Unity Locations: New York City
Ten years ago, DoorDash launched a local delivery service from a Stanford dorm room. 1 food delivery operator in the US. Here are 10 big milestones for the on-demand delivery provider of groceries and restaurant meals. "Ultimately, our vision is to build the local, on-demand Fedex," DoorDash wrote in an October 2013 Medium post. The company started with food delivery but has since expanded to offer on-demand delivery of groceries, beauty supplies, and convenience store goods.
Persons: DoorDash, Tony Xu, Evan Moore, Stanley Tang, Andy Fang, Grubhub, Uber Organizations: Stanford, Service, Fedex Locations: Wall, Silicon, Stanford
In 2021, Gorillas, Buyk, and Gopuff opened dozens of rapid-delivery warehouses in Manhattan. Amid a collapse in the sector, DoorDash has ceased its ultrafast delivery operation in Chelsea. DoorDash's exit comes as the ultrafast grocery delivery space has collapsed over the past year after growing wildly in spring 2021. Many had spread throughout New York City, Chicago, Boston, and San Francisco. Neighborhoods in New York City also balked at the dark store operations, accusing them of ruining retail enclaves and taking away business from local bodegas.
Persons: Gopuff, DoorDash, , York DashMart, Fuad Hannon, they're, Hannon, Robert Mollins, Gordon, Getir Organizations: Investors, Service, The Locations: Manhattan, Chelsea, New York City, Chicago, Boston, San Francisco, York
DoorDash Chief Technology Officer and co-founder Andy Fang got lost while making deliveries. DoorDash's app gave Fang the wrong address for a restaurant, a problem he said he'll look into. Andy Fang, DoorDash's chief technology officer and co-founder, is one of the executives featured in an AP story published on Tuesday about C-suiters who work shifts as regular workers at their companies. The culprit: DoorDash's app, which Fang figured out was directing him to the wrong address to pick up an order from a restaurant, per the AP. As chief technology officer, Fang made $2.8 million in 2022, according to the AP.
Persons: Andy Fang, Fang, , DoorDash's, Dara Khosrowshahi, Uber, Khosrowshahi, Laxman Narasimhan, Narasimhan Organizations: Technology, Service, AP, Forbes, Starbucks Locations: San Francisco
New features include giving customers the ability to edit tips after the delivery is complete. The company is also giving its gig workers the choice to earn their pay per hour, instead of by delivery order. Customers can add or increase a tip for drivers on the app up to 30 days after delivery. At DoorDash, consumers won't be able to reduce tips after delivery, the company said. DoorDash is also launching SNAP benefits for online payments for grocery delivery with brands such as Safeway, Albertsons, Meijer, Aldi, and 7-Eleven.
Persons: , Rajat Shroff, DoorDash's, Shroff, Austin Haugen, Uber, Sergio Avedian, DoorDash, Cody Aughney, Aughney Organizations: Service, Consumers, Logistics, Dasher & Logistics, Safeway, Albertsons Locations: DoorDash, Los Angeles, Canada, Australia, Meijer, Aldi
Logitech — Shares tumbled 12.3% after the company announced president and CEO Bracken Darrell is departing. Toyota — The Japan-based automaker's shares gained 4.5% Wednesday. Lumen Technologies — The telecommunications stock gained 6% during midday trading Wednesday, adding to the 16% advance that was made Tuesday. Earlier in the week, the company announced a new partnership with electric vehicle software charging company ev.energy. Advanced Micro Devices — The chip stock gained nearly 2% in midday trading, a day after the company announced its latest artificial intelligence chips.
Persons: Bracken Darrell, UnitedHealth — UnitedHealth, John Franklin Rex, Akio Toyoda, Lumen, Roth MKM, Goldman Sachs, Bernstein, Bud, Raymond James, Buster's, Cinemark, Riley, Li Auto, Morgan Stanley, Wolfe, it's bullish, Gordon Haskett, SVB, — SoFi, Estée Lauder —, — CNBC's Michelle Fox, Yun Li, Sarah Min, Hakyung Kim Organizations: Logitech, Swiss Federal Institute of Technology of, Citi, Goldman, Global Healthcare, Toyota, Lumen Technologies, Google, Microsoft, Maxeon, Technologies, Reuters, Services, AMD, Anheuser, Busch InBev —, Netflix, Wolfe Research, Barclays, SVB Securities, Berenberg Locations: Swiss Federal Institute of Technology of Lausanne, Lausanne, Switzerland, Japan, Latin America
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