What Does DoorDash's IPO Mean for Grubhub?
DoorDash surpassed Grubhub (NYSE: GRUB) as the top food delivery platform in the U.S. last year. It controlled 38% of the market in January, according to Second Measure, while Grubhub and Uber (NYSE: UBER) Eats held 31% and 20% shares, respectively.
DoorDash hit a valuation of nearly $13 billion after its last funding round, and it recently filed confidential paperwork for its long-awaited IPO. DoorDash's financials won't be fully revealed until they're made public prior to its IPO, but The Information previously predicted that it could post a net income loss of $450 million on revenue of $900 million to $1 billion in 2019.
Those massive losses could dampen investor enthusiasm for DoorDash's IPO, especially after Grubhub's stock was cut in half over the past two years. Moreover, DoorDash's transition from a private to a public company could shift its competitive dynamic with Grubhub. Let's see if this upcoming IPO will help or harm Grubhub.
Source Fool.com
