DoorDash scam found to be fraudulently charging people who didn’t even have the app
Becky Robertson, 27 January 2021
An exposé from the CBC found multiple citizens across six provinces including Ontario had been charged, even those who live in remote areas where DoorDash isn’t even offered.
It also seems that many of the targets weren’t even existing DoorDash customers, making the methodology of how the fraudsters got their banking info all the more sketchy.
The origins of the scam and who is behind it have yet to come to light, but DoorDash has said that it is taking the situation very seriously and has worked with TD to resolve the issue through reimbursements.
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Contract Violations, Fraudulent Activity Deactivations, Doordash, Grubhub and Uber Eats Cracking Down
ronald.l.walter, 25 January 2021
What’s going on with all this activation talk lately? What’s up with all this cracking down on contractors lately by Grubhub, Doordash, Uber Eats and maybe others? And how can you avoid being deactivated?
Spend much time lately in Reddit or Facebook groups for drivers and you see people left and right who are being deactivated or threatened with deactivation.
Referral policy fraud. Extreme lateness. Fraudulent activity. What’s going on here? We’ll get into why this may be happening. Then we’ll talk about whether these companies are crossing the line. Then we’ll get into what we can do to avoid being deactivated. Finally, what do you do when you do get deactivated?
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3 Reasons to Avoid the DoorDash IPO and Other Food Delivery Stocks
Jeremy Bowman, 11 December 2020
It’s a great time to be a DoorDash (NYSE: DASH) insider. Shares of the hot food delivery start-up jumped 86% on its IPO day, rising off of an already elevated listing price. The eye-popping surge comes as restaurant delivery apps have been among the big winners during the pandemic and amid speculation of a broader bubble in tech stocks.
Still, at a valuation around $72 billion now, double that of well-established restaurant chains like Chipotle, for example, it seems too hard to justify DoorDash’s market cap. The company is still unprofitable, even as it’s experienced significant tailwinds from the pandemic. Beyond valuation concerns, there are a number of other reasons to avoid DoorDash and its food delivery peers.
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If you bought DoorDash at $180…
SirGasleak, 10 December 2020
No moat at all. Sure they have 50% market share but there are competitors. They’re a delivery service – anyone can do what they do. Not only does this pose a risk to market share, but it poses a huge risk to the already thin profit margins. At some point (because of 2-4 below) they will have to lower their fees and take rate, which will hurt margins even more.
No brand value or brand loyalty. People couldn’t care less who delivers their food, as long as it shows up on time and hot. Early in COVID I was using Skipthedishes until I got frustrated with poor service so I left. There is nothing to keep customers loyal to DoorDash if someone else offers better service, or the same service at a better price.
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DoorDash Soars in First Day of Trading
Erin Griffith, 09 December 2020
Shares of DoorDash soared in their first day of trading on Wednesday, capping a year of outsize growth for the country’s largest food delivery company. DoorDash stock rose 86 percent above its initial public offering price of $102 to close the day at $189.51.
That valued the company at $72 billion, including employee-owned shares — more than the market capitalization of Domino’s Pizza and Chipotle Mexican Grill combined. DoorDash raised $3.4 billion, making it the one of the largest I.P.O.s of the year.
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DoorDash valued at $71 billion in blockbuster market debut
Noor Zainab Hussain, Joshua Franklin, 09 December 2020
(Reuters) -DoorDash Inc shares popped more than 80% in their debut on Wednesday, valuing the food delivery company at $71.3 billion or more than four times its worth at a private fundraising round six months ago, underscoring investor appetite for technology companies boosted by the COVID-19 pandemic.
Shares opened at $182 on the New York Stock Exchange, significantly above the initial public offering (IPO) price of $102 apiece and closed at $189.51. The company had raised $3.37 billion in its IPO on Tuesday.
Such a large first-day trading gain is likely to fuel criticism from some venture capital investors, including Benchmark’s Bill Gurley, who argue investment banks underprice IPOs so their investor clients can score large gains when the stock starts trading.
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DoorDash Soars in IPO to $60 Billion Market Cap
Christiana Sciaudone, 09 December 2020
Investing.com — Doordash Inc (NYSE:DASH) is a smash hit. The food-delivery company opened trading at $182, a whopping 78% jump over the $102 at which it priced on Tuesday.
The company sold 33 million shares — originally marketed between $90 and $95 — on Tuesday to raise $3.37 billion in its initial public offering and now has a market value of about $60 billion.
DoorDash’s IPO is the third-largest in the U.S. this year, topped only by Bill Ackman’s $4 billion blank-check company and Snowflake Inc’s (NYSE:SNOW) $3.86 billion offering.
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DoorDash IPO delivers billions to its Stanford founders
Tom Maloney, 09 December 2020
Stanford University students Tony Xu, Andy Fang and Stanley Tang had a revelation seven years ago in a Palo Alto macaroon store.
The shop’s owner showed them pages and pages of delivery orders she hadn’t been able to fulfill. Demand wasn’t high enough to hire a full-time delivery person, but there was no way she could drop off all the orders herself. It was a story the three heard again and again as they worked to understand how they could leverage technology to help small businesses.
They decided to build a basic web page with menus from local restaurants to see if there was demand for a delivery business. “It was super simple, ugly, and honestly we weren’t really expecting anything,” Tang said at a Stanford lecture years later. “All of a sudden we got a phone call – someone called! They wanted to order Thai food.”
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DoorDash takes a hefty cut from restaurants, and risks losing them to cheaper options
Ari Levy, 08 December 2020
Salvatore Reina owns three Francesca pizzerias in New Jersey that have been closed for indoor dining during the pandemic. While much of his industry turned to DoorDash, Reina resisted.
“Third parties take a big cut,” said Reina, who opened his first pizzeria 12 years ago, about 20 miles outside of New York City. “I’d rather spend those marketing dollars to get people directly.”
As DoorDash prepares for its public market debut, an offering that could value the delivery app service at over $30 billion, the San Francisco-based company has to show that it can make enough money on every order to turn into a profitable business. Meanwhile, investors have to consider how many restaurant owners will eventually turn away from apps like DoorDash because the costs are too high for their low-margin operations.
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