This week, Didi launched its IPO and is valued at $62 billion – what does it mean for competitors? Also in recent news, DoorDash sent out a survey to their customers and determined people would rather order directly from a restaurant’s website than order through the DoorDash app or other third party apps. Senior RSG contributor Paula Gibbins goes over all this and more below.
Didi closes up 1% on first day of trading (CNBC)
Summary: Shares of Didi Chuxing closed up a modest 1% Wednesday afternoon after spiking as much as 28.6% in the Chinese ride-hailing giant’s market debut.
The company’s stock began trading at $16.65 per share, up about 19% from the company’s offering price of $14 per share, bringing its market cap to nearly $80 billion. It closed at $14.14 apiece, with a market cap of about $67.8 billion.
Didi was most recently valued at $62 billion following an August fundraising round, according to PitchBook data. The valuation as of Wednesday’s first trade is more muted than the $100 billion that some had predicted. Still, it ranks among the largest U.S. IPOs over the past decade….
My Take: As a reminder, Didi is a rival of rideshare giant Uber. Didi reports as being profitable (unlike Uber or Lyft) and claims to take less money from the drivers on their platform than Uber or Lyft.
When both Uber and Lyft went public, they closed the day below their first trade price, but Didi closed 1% above. Obviously, something is appealing about the Didi stock when compared with Uber and Lyft. I can’t wait to see what this company does for the rideshare industry as a whole.
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It’s a meme now (Reddit)
My Take: Ok, I know this isn’t a news story, but I came across it this week and it kinda made me upset. I realize not all customers will tip and some people believe that tipping anything at all is something the delivery driver has to earn. But, I believe that someone taking the time to pick up my food and deliver it to my home deserves some kind of tip…every time.
This meme is heartbreaking. Mostly because it’s insinuating that there are people out there who know that drivers deserve a tip, but they are too cheap to give them one and will purposely—and very gladly—leave no tip.
I posted this to Facebook to get your reactions. Here are a few responses:
One delivery driver pointed out, “You can tell who is not leaving a tip on deliveries. I always decline and wait for one with a tip.”
Fellow contributor Tyler responded, “I just don’t take deliveries not worth it. The tips are the only thing that makes it worth my time. Less than $6 for 20 minutes, I decline every time now.”
Another implied it’s inappropriate to brag about not tipping. One person simply replied, “Classless.”
I agree. To brag or boast about not tipping is rude and uncalled for. I feel like those people have never worked in a similar industry. We should have each other’s backs.
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Diners would rather order from your website than DoorDash, DoorDash says (Restaurant Business)
Summary: A new report from the delivery giant found that many customers favor first-party channels such as websites and even the telephone over third-party ordering.
Attention restaurants: Customers really like ordering from your website or app.
Many of them like it better than ordering from a third party like DoorDash, Grubhub or Uber Eats.
In fact, a lot of people would even rather call you on the phone than do that.
That is according to a new report from the most prominent of those third parties—DoorDash—based on surveys of 1,525 U.S. consumers in April about their restaurant ordering habits.
And it should come as welcome news for restaurants that have been frustrated with the high fees and other issues associated with third-party services. Many have worked to push customers to order direct, which is less costly and allows restaurants to capture more data. The report suggests that diners are on the same page….
My Take: I couldn’t agree more. I would much rather order directly from a restaurant than through DoorDash or any other third party app. And not just for the reasons listed as part of the survey—including ease of use, familiarity and convenience—but also because I have rewards points through the restaurants that are easier to accumulate directly on their apps.
Plus, it seems like DoorDash and other apps don’t always have the full menu available. And, at least in my experience, it’s more expensive to order through DoorDash. I’d rather save a couple bucks and order directly from Jersey Mike’s than to pay more to order through DoorDash.
How do you prefer to order your meals for delivery? What makes one way better than the other in your opinion?
-Paula @ RSG
