DOORDASH

Analysis of Doordash share price

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All serious investors in the stock markets should be capable of completing comprehensive and pertinent analyses of an asset before investing in it. In this article dedicated to the American DoorDash Company we have gathered all the information you may need to be able to complete effective analyses of its share price. We will examine the factors you need to take into account for completing a fundamental analysis that could impact the growth and opportunities for this company and we will examine the DoorDash Company with explanations on its activities, its major competitors in this market, as well as strategic partnerships. We will conclude by examining certain stock market information that it is important for you to know.

Elements that can influence the price of this asset:

Analysis N°1

Firstly we would of course pay particular attention to technological developments completed by DoorDash on its application that would enable increased satisfaction and client loyalty.

Analysis N°2

In the same way it is also important to monitor the diversification of this company’s activities. Up to now it has been highly active in the food delivery sector but DoorDash may decide to strategically expand its activities to include other sectors in the delivery on demand market thereby increasing its sources of income.

Analysis N°3

We would also closely follow the competition in this activity sector that has experienced a strong boost in growth over the last few years. Apart from the large groups it has to face we would also monitor the start-ups in this sector that are starting to lay claim to market parts.

Analysis N°4

Still relating to the fundamental analysis of the DoorDash share price you should remain attentive to any purchase, acquisition, merger and strategic partnership operations that may be implemented by this group in the future that could impact its share price on the stock markets.

Analysis N°5

Finally we would also carefully examine the publication of the annual and regular financial updates results of this group and compare these to forecasts and objectives.

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General presentation of Doordash

The Doordash Company is an American group that is specialised in software on demand. It acts as an intermediary between merchants and potential buyers that wish to purchase items from local companies through a delivery service. At present the company is specialised in the delivery of food and meals.

The business model implemented by DoorDash was created for users and restaurant owners. Users of this service can find a restaurant and order their meal online and the restaurants can access a new online client market. DoorDash has rapidly become one of the leaders in its activity sector in the United States, notably as it has successfully raised significant funds from investors and also in the way it has successfully implemented strategic partnerships with numerous chains of popular restaurants in the large American towns and cities.

The three main targets of the DoorDash economic model are as follows:

  • The final users, or the end clients, are of course the main targets of the DoorDash Company. These could be individuals or companies.
  • The restaurants are also a major target, notably those that do not offer their own home delivery service or wish to widen their range of clientele.
  • Finally, the company also targets ‘dashers’, these are the people that want to work as food and meal delivery drivers working flexible hours.
Analysis of Doordash share price
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The major competitors of Doordash

Takeaway

This Dutch group is also specialised in the online ordering home delivery fast food sector. This service is offered to final clients through a website that lists various restaurants and their menus and enables users to order their meal or food online or through an application to be delivered directly to their homes. This company is present in various European towns and cities as well as the United States. It in fact proceeded with the acquisition of a number of international competitors including Just Eat and GrubHub. It is also quoted on the Euronext Amsterdam stock market, in section A to be precise and is also included in the composition of the AEX stock market index and the Next 150. It should be remembered that this company acts as an intermediary between users and restaurants and offers, like DoorDash, an online portal accessible through the internet or an application for users to order their meals and food. The delivery drivers of Takeway are called ‘Scoobers’. Over recent years this company has been operating at a loss.

Uber Eats

Another major competitor of DoorDash is of course the giant Uber Eats, a subsidiary of the Uber Group which launched this fast food home delivery service in 2015. This group is based in California in the United States. Here again, users’ orders are passed to the restaurant partners through a mobile application or the company’s website and the orders are then delivered by independent delivery drivers. From a geographical point of view Uber Eats actually operates worldwide with markets including North America, South America, Europe, Australia, Asia and some cities in Africa. Its operation is based on the use of a digital e-commerce platform that offers the delivery of meals and food ordered from partner restaurants. These restaurants are chosen via a platform that is operated by Uber Eats. The delivery cost is paid by the final client depending on the delivery distance and the platform is paid a commission of 30% on the invoice generated by the partner restaurant. Regarding the independent delivery drivers that deliver the meals and food to the final clients, they are paid according to the route and distance covered.


The major partners of Doordash

Meijer and Freshtime

In 2020 the DoorDash Group established strategic partnerships with the Meijer and Freshtime companies. This partnership contract thereby enabled the group to deliver grocery products to its clients in Chicago, Cincinnati, Milwaukee, Detroit and Indianapolis. Also, the group had previously implemented other partnerships of this type such as with the Smart & Final Company in California in the same year with the aim of delivering grocery products to clients in Sacramento, in the San Francisco Bay area, the central coast area and Los Angeles, Orange County and San Diego. In total, with this new partnership, these account for over 10,000 products available for delivery to clients from participating grocery shops in less than an hour without pre-ordering or lengthy waits.

Tim Hortons

Still in 2020, the DoorDash Group implemented a strategic partnership with the Tim Hortons Company. More precisely, this is the second partnership initiated with this company and it concerns nearly 500 establishments. The DoorDash platform enabled its clients to order doughnuts, sandwiches and other food products from Tim Hortons cafes which are then delivered directly to their homes. This partnership was in fact the launching pad for a large advertising campaign that also offered the clients the opportunity to receive TimbitsMD products free of charge until the expiry of stocks. For several weeks clients ordering at least $12 of food from Tim Hortons through the DoorDash platform or application would also receive an assortment of 10 mini TimBitsMD free of charge with no delivery fee using a promotional code provided for this event. This partnership that was uniquely implemented in Canada enabled its clients in this country to take part in this free delivery promotion for several months.

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Frequently Asked Questions

When was the partial introduction of DoorDash onto the stock markets?

It was only very recently, in December 2020 to be more precise, that the DoorDash Group was partially introduced onto the stock markets. This operation enabled the generation of 3.4 billion dollars. It should be noted that the introductory share price was originally fixed at 102 dollars per share. The asset began the trading session at 182 dollars per share on the New York Stock Exchange, or NYSE, which represents a rise of over 78% of its value.

Can you trade in DoorDash Company shares from Europe?

Although the DoorDash share price is quoted on the American stock market it is of course available from Europe using certain tools or services. This is notably the case with CFDs or ‘Contracts for the Difference’ that are available from reputable brokers online that offer the opportunity to speculate on the assets of certain American companies such as DoorDash which was recently introduced onto the stock markets. You can of course also access other American, European and international assets.

Is it necessary to complete a technical analysis of the DoorDash share price?

Although a fundamental analysis of the DoorDash share price is clearly necessary before taking position on this asset the same is also true for a technical analysis. It should be remembered here that this share price was only recently introduced so it could be seen as particularly volatile and speculative. Therefore, a technical analysis, completed parallel to a fundamental analysis, will enable you to evaluate the market feeling towards this asset by studying the volatility and trading signals displayed on the stock market charts. This could therefore be seen as a supplementary protection.

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