u/Artistic_Diver8781 · 33d ago3 prior · awaiting results
I don't understand why DoorDash is valued so highly. IMO food delivery is a bad business
DoorDash trades at 5.2x EV/Sales, far above food-delivery peers globally (Meituan at 0.83x, Swiggy at 2.5x). Food delivery has weak structural moats—customers are price-sensitive, restaurants multi-home easily, and network effects are local. Without sustainable competitive advantages, DoorDash faces disruption risk from well-funded competitors deploying price wars, similar to Meituan's recent market-share collapse in China.