$DASH Don't Sleep on Doordash!
I can't say this enough. Best business model ever. Gross profit going UP and order volume going through the roof.
Watch this company it will be huge.
I think it's worth considering how much revenue DoorDash is able to create per booking than Uber Eats. From my analysis, Uber Eats has a better time creating more revenue per booking than DoorDash.
I see Uber Eats becoming more profitable than DoorDash. With that, I see Uber Eats gaining a more dominate position in the market.
Gross profit is rising but slower than revenue. Revenue was up 30% YoY in Q2 but CoGS was up 59%. That's bad. CoGS has risen faster YoY than revenue in each of the last 4 Qs. That's terrible. On a TTM basis, CoGS is up 49% while revenue is up 36%. Woof. At least total operating expenses has improved on a TTM basis but not by much. Even TTM FCF is in the tank now compared to the previous TTM. Net losses increasing, although not as fast as revenue is growing, so yay?
I see a business that is racing to the bottom to gain market share with no path to profitability and will continue to dilute shareholders (already 11% dilution in just 6 Qs since coming public).
Their business model is actually one of the few I wouldn't touch.