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Grubhub’s warning for the on-demand food delivery space

Taken from: After that it was time to leave the auspices of the early-stage market and move to, of all things, a public company. GrubHub reported earnings this week. It went poorly. Alex wanted to riff over the company’s earnings report and what it could mean for startups that are competing with GrubHub, a leader…

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After that it was time to leave the auspices of the early-stage market and move to, of all things, a public company. GrubHub reported earnings this week. It went poorly. Alex wanted to riff over the company’s earnings report and what it could mean for startups that are competing with GrubHub, a leader in the food delivery space that DoorDash and Postmates would prefer to lead themselves.

What impact GrubHub may have on the highly-valued on-demand companies isn’t clear yet, but will be pretty damn interesting to see when it does land.

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7 Comments

7 Comments

  1. Pipidoo Experiments

    November 7, 2019 at 5:52 pm

    great!

    Reply

  2. Brian Throm

    November 7, 2019 at 7:35 pm

    If doordash or postmates have growth rates significantly higher than grub hub, it likely indicates that their unit economics are not very healthy.

    Buying market share is easy if you’re investors are willing to subsidize the customers

    Reply

  3. Luke r

    November 7, 2019 at 8:24 pm

    Basically saying nothing.

    Reply

  4. iamdmc

    November 7, 2019 at 11:19 pm

    there’s nothing special about what they do

    anyone can, and so any and all of these companies will go DOWN FAST

    Sell now

    Reply

  5. Ace Hardy

    November 8, 2019 at 1:25 pm

    👨‍🍳

    Reply

  6. Sean Sweeney

    November 9, 2019 at 12:57 am

    PSA: grubhub is actually a buy

    Reply

  7. James Carroll

    November 10, 2019 at 6:23 pm

    GrubHub is in a far better position than smaller (dying) companies like Waitr. GH is still in profit territory. We really don’t know what DD and the others will look like until their planned IPO. Slim to moderate growth for GH would be desirable rather than insane growth. Stabilization.

    Reply

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