Equity Analyst, LightStream Research

Aqila Ali

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Capital Markets

<a href="https://www.smartkarma.com/entities/doordash-inc" target="_blank" data-smartkarma-citation="entities:28881:1" rel="noopener">DoorDash Inc (0881510D US)</a>, currently the leading online food delivery app in the U.S., announced that it has filed confidentially to go public. Details regarding the number of shares, share price, or exact timing of the IPO have not yet been released.
<div class="content-highlight">
Our thoughts summarised:
The players in the industry follow similar strategies to accumulate customers, and have their own pros and cons, with no unique value proposition. This also explains the lack of customer loyalty in the industry, where switching between apps to order food is very common. This creates an intensely competitive industry.
Thus, although, DoorDash’s current competitive position seems attractive, it is unclear how the future will unfold against the backdrop of a highly competitive industry. However, an IPO seems to be a good strategy that the company could adopt to gain access to capital that can be deployed to strengthen its position.
</div>
We go through the details below.

DoorDash Inc (0881510D US), currently the leading online food delivery app in the U.S., announced that it has filed confidentially to go public. Details regarding the number of shares, share price, or exact timing of the IPO have not yet been released.

Our thoughts summarised:
The players in the industry follow similar strategies to accumulate customers, and have their own pros and cons, with no unique value proposition. This also explains the lack of customer loyalty in the industry, where switching between apps to order food is very common. This creates an intensely competitive industry.
Thus, although, DoorDash’s current competitive position seems attractive, it is unclear how the future will unfold against the backdrop of a highly competitive industry. However, an IPO seems to be a good strategy that the company could adopt to gain access to capital that can be deployed to strengthen its position.

We go through the details below.

DoorDash IPO: Another Loss-Making Start-Up in a Highly Competitive Industry