Independent Research, Food Delivery Space, Newmoon Capital

Newmoon Capital

Independent Research, Food Delivery Space

We look for owner-operators in what we believe are either highly defensible assets or soon to be highly defensible assets, trading at a fraction of their future potential.

Private Capital Markets

Judging from the twitter DMs, several of my points from my previous post have gone over the head of some investors, particularly the one around Signature (white label delivery). Deliveroo is at risk of getting disrupted because a large proportion of its orders/sales are from a small selection of chain restaurants — 10 chains represent 35% of ALL UK orders. Some of such chains include Nando’s, Wagamama, and McDonalds. The top 100 chains could easily be more than 50% of the UK business, if not much more. This is the case (if not moreso) for Uber Eats, and less the case for $TKWY.

Judging from the twitter DMs, several of my points from my previous post have gone over the head of some investors, particularly the one around Signature (white label delivery). Deliveroo is at risk of getting disrupted because a large proportion of its orders/sales are from a small selection of chain restaurants — 10 chains represent 35% of ALL UK orders. Some of such chains include Nando’s, Wagamama, and McDonalds. The top 100 chains could easily be more than 50% of the UK business, if not much more. This is the case (if not moreso) for Uber Eats, and less the case for $TKWY.

Deliveroo Part 6 - White Label Killed the Delivery Star

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Capital Markets

Established in 2013, Deliveroo is getting ready to complete its IPO on the London Stock Exchange in the next several weeks. Backed by <a href="https://www.smartkarma.com/entities/amazon-com-inc" target="_blank" data-smartkarma-citation="entities:409:1" rel="noopener">Amazon.com Inc (AMZN US)</a>, Deliveroo is one of the largest food delivery service companies in the U.K. Amazon owns a 16% stake in Deliveroo. The Deliveroo IPO is expected to be one of the biggest IPOs in the U.K. this year. It has been reported that the market that the company's market cap post IPO could be nearly <a href="https://edition.cnn.com/2021/03/08/investing/deliveroo-ipo-london/index.html" target="_blank" rel="noopener">$7 billion to $10 billion. </a>Deliveroo processed £4.1 billion ($5.7 billion) in total transactions on its platform in 2020, up 64% YoY. Adjusted EBITDA/GTV ratio improved significantly from -122.7% in 2019 to -2.7% in 2020. <div class="content-highlight">Comparison With DoorDash's Market Cap/GOV and Deliveroo's Implied Market Cap - DoorDash currently has a market cap of $43.7 billion. DoorDash had total marketplace GOV (gross order value) of $24.7 billion. If we divide market cap/GOV, this results in a ratio of 1.8x. If we use this multiple (1.8x) and apply it to Deliveroo's total gross transactional value of £4.1 billion ($5.7 billion), this results in an implied market cap of $10 billion for Deliveroo. </div>

Established in 2013, Deliveroo is getting ready to complete its IPO on the London Stock Exchange in the next several weeks. Backed by Amazon.com Inc (AMZN US), Deliveroo is one of the largest food delivery service companies in the U.K. Amazon owns a 16% stake in Deliveroo. The Deliveroo IPO is expected to be one of the biggest IPOs in the U.K. this year. It has been reported that the market that the company's market cap post IPO could be nearly $7 billion to $10 billion. Deliveroo processed £4.1 billion ($5.7 billion) in total transactions on its platform in 2020, up 64% YoY. Adjusted EBITDA/GTV ratio improved significantly from -122.7% in 2019 to -2.7% in 2020. Comparison With DoorDash's Market Cap/GOV and Deliveroo's Implied Market Cap - DoorDash currently has a market cap of $43.7 billion. DoorDash had total marketplace GOV (gross order value) of $24.7 billion. If we divide market cap/GOV, this results in a ratio of 1.8x. If we use this multiple (1.8x) and apply it to Deliveroo's total gross transactional value of £4.1 billion ($5.7 billion), this results in an implied market cap of $10 billion for Deliveroo. 

United Kingdom

Deliveroo PLC provides software solutions. The Company offers an online food delivery platform which allows users to order meals from partner restaurants, grocery stores, and other food suppliers. Deliveroo serves customers worldwide.

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Deliveroo (ROO LN)

Deliveroo Part 6 - White Label Killed the Delivery Star

Deliveroo is at risk of getting disrupted because a large proportion of its orders/sales are from a small selection of chain restaurants — 10...

Newmoon Capital

Initial Thoughts on the Deliveroo IPO

Deliveroo IPO is expected to be one of the biggest IPOs in the U.K. this year. The company's market cap post IPO could be nearly $7 billion to $10...

Douglas Kim

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