[I own DoorDash stocks. This is not investment advice. Do your own due diligence.]

DoorDash announced its 2022 Q2 earnings last week.  My assessment is that DoorDash’s results are mostly positive.

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Update on Grubhub/Amazon Deal:  Starting Jul 6, 2022,  Amazon Prime members in the U.S. are given a free, one-year Grubhub+ membership with unlimited free food deliveries.  This arrangement effectively brought the e-commerce behemoth back into the U.S. food delivery arena.  To me, it served as a “stress test” on incumbent players such as DoorDash and Uber Eats.  And three days later, on Jul 9, 2022, I made the public prediction that the Grubhub/Amazon deal would NOT matter (see my blog here).  

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[I own both stocks. This is not investment advice. Do your own due diligence.]

I will write a piece later. Just to share the joy first.

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[I own DoorDash stocks. This is not investment advice. Do your own due diligence.]

The Deal

Mainstreet news media report the deal as such: “Amazon Bringing Grubhub To Prime Users After Buying 2% Stake”, “Amazon buys 2% stake in Grubhub, offering new perk for Prime members.”

Astute investors study source materials. According to Grubhub’s official newsroom release:

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[I own DoorDash stocks.  This is not investment advice.  Do your own due diligence.]

Studying DoorDash’s 2022 Q1 earnings, released on May 5, 2022, I am convinced that DoorDash is in great shape. 

Many of DoorDash’s metrics are hitting all-time high. Tony Xu, CEO of DoorDash, said on CNBC the day after company earnings: “what we see internally and in the fundamentals is all-time highs in our user base, all-time highs in our DashPass subscriber program, as well as order frequency across all cohorts, as well as increasing profitability in an already profitable business which is our U.S. restaurant business.”

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[This is not investment advice. Do your own due diligence.]

The delivery space has produced a lot of headlines lately. This time, it is about Gopuff.

Gopuff is an Instant Delivery company founded in 2013. It promises delivery in 30 minutes or less and its delivery fee is $1.95 per order.

On March 31, 2022, Bloomberg reported that Gopuff is close to raising $1B and is laying off 3% of its workforce (source link). Combined with information from other news sources, we know the following data points about Gopuff:

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[This is not investment advice. Do your own due diligence.]

I want to write this piece to provide an update to my February 11 post, titled Instant Delivery: Challenges That Cannot Be Overcome. Since that post, several events have transpired, very much in the direction that I predicted.

First, at least two Instant Delivery companies have since folded or near-folded. On March 4, Buyk, an Instant Delivery company operating in New York and Chicago, furloughed ~98% of its employees (source link). Its CEO was quoted saying: “we find funds, we find a buyer or we have to liquidate” (source link).

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[I own DoorDash stocks. This is not investment advice. Do your own due diligence.]

DoorDash is my largest position. In early November 2021, I completely liquidated my DoorDash holdings (see my earlier post). Since then, I have been accumulating DoorDash stocks, buying aggressively in very recent weeks. My cost basis is less than half of the price that I sold DoorDash last November. As I wrote in my year end summary for 2021 (link), “A low cost basis is the mathematical foundation for achieving a high IRR.” In my investing, I intend to achieve a high IRR. Therefore, a low cost basis matters.

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