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DoorDash from Application to IPO

blog.ycombinator.com

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Re: DoorDash from Application to IPO

#11

Post by frakkingcylons »

ravenstine wrote: post #6
JeremyBanks wrote: post #3

I used to use DoorDash, and tipped very well since I knew the workers could really use it. And then I learned that the company has been stealing tips from the workers who need it, so that they can make their finances look better in anticipation of this IPO. https://www.vox.com/recode/2019/8/20/20825937/doordash-tippi... I haven't used the service since.

I don't really know the precise details, but I'm pretty sure their pay model changed after the backlash(and being sued) to the tip-stealing. Still, I wouldn't choose DoorDash unless it was the only option in my area. When I was driving for GrubHub I met a lot of other delivery drivers and everyone considered DoorDash to be the the worst in terms of treatment of drivers. In other words, bad support and tip stealing. W…

They eventually changed it but they defended their behavior repeatedly as if it was fine and not exploitative to their delivery drivers.

Re: DoorDash from Application to IPO

#12

Post by LimaBearz »

kneel wrote: post #4

So many companies cashing in on IPOs this year, good for them. I still cannot support a company that pockets tips intended for their drivers, it's pure greed.

A local pizza place recently decided to start using them for deliveries, whether you order on their platform or not doordash will drive it.

I stopped using doordash years ago over extremely poor quality and was extremely disappointed. I realized.. when you order local they put your pizza in those oven mit things and delivery you a fresh warm pizza.

Doordash makes zero investment in their drivers. That short 10 minute drive to my house, no oven thingy, cold pizza, slid to one side of the box ruining half of it. Thnx doordash

Re: DoorDash from Application to IPO

#14

Post by fluxic »

JeremyBanks wrote: post #3

I used to use DoorDash, and tipped very well since I knew the workers could really use it. And then I learned that the company has been stealing tips from the workers who need it, so that they can make their finances look better in anticipation of this IPO. https://www.vox.com/recode/2019/8/20/20825937/doordash-tippi... I haven't used the service since.

Very much agreed; while I try to avoid food delivery services as much as I can (knowing drivers are generally making sub-minimum wage after vehicle depreciation) this brazenness of DoorDash's tip garnishing is a bit of a black mark on YC. I won't even take DD up on the "free meal" promos they're running in my city.

Re: DoorDash from Application to IPO

#15

Post by sxg »

As a customer, DoorDash is just consistently a terrible experience. I have the DashPass, which was advertised as free delivery for many restaurants. Turns out it only works if you spend $12, and even then sometimes it doesn’t apply. If you check prices between the app and the actual restaurants’ websites, there’s often an extra $2-3 added on for each item on DoorDash (I don’t blame the restaurants). When it’s all said and done, a basic $10 meal ends up being $20+ through DoorDash after the upcharged food items, delivery fee, service fee, and tip.

Edit: I do still order through DoorDash when they offer me the occasional coupon, but I rarely order without a substantial discount. I don’t know how this business model is sustainable. I’ve also noticed that many local restaurants offer their own free delivery with no service fee or up charging if you live nearby. Also, some of the best restaurants in the area seem to not be on DoorDash, Uber Eats, etc.

Re: DoorDash from Application to IPO

#16

Post by giancarlostoro »

sxg wrote: post #15

As a customer, DoorDash is just consistently a terrible experience. I have the DashPass, which was advertised as free delivery for many restaurants. Turns out it only works if you spend $12, and even then sometimes it doesn’t apply. If you check prices between the app and the actual restaurants’ websites, there’s often an extra $2-3 added on for each item on DoorDash (I don’t blame the restaurants). When it’s all sai…

There's a nearby restaurant me and the wife love to order from for breakfast every other month cause its so good, but we stopped ordering from that location and pick a slightly further location because they upcharge on things in a ridiculous way. I'm talking a $20 difference if not more depending on if we're both trying to order the same thing, imagine overpaying by $40 to feed two people.

Re: DoorDash from Application to IPO

#17

Post by stu2b50 »

I am shocked at how much better DD's financials are than every other food delivery service. Was pretty skeptical because of that, but their gross margin improvement is huge and their net loss is relatively controlled.

Re: DoorDash from Application to IPO

#18

Post by chosenbreed37 »

I've never used the service. Probably not available where I live. Judging by the complaints here it looks like they could improve on some aspects of the operation. To add to that I've incredulous responses to their valuation. All I can say that what they have achieved is very impressive. Regardless of how it pans out from here.

Re: DoorDash from Application to IPO

#19

Post by pb »

elpakal wrote: post #9

Love it! It's great to see initial skepticism from YC about how this wasn't working. I feel like you see IPO write-ups like these and it's always implied that everyone around them always knew they were going to make it. That said, I searched the entire article for the words "luck" and "lucky" and see none. No doubt the pandemic and WFH life helped them, and that's something even YC couldn't have predicted.

Yeah, it's so easy to convince yourself that you knew all along that a company would succeed, which is one reason why it's helpful to keep actual notes.

It's also a great example of a company that was not popular on Demo Day. This kind of success is so hard to predict.

Re: DoorDash from Application to IPO

#20

Post by mrbazinga »

lambda_obrien wrote: post #8
ravenstine wrote: post #6

Earlier quoted context omitted.

I don't really know the precise details, but I'm pretty sure their pay model changed after the backlash(and being sued) to the tip-stealing. Still, I wouldn't choose DoorDash unless it was the only option in my area. When I was driving for GrubHub I met a lot of other delivery drivers and everyone considered DoorDash to be the the worst in terms of treatment of drivers. In other words, bad support and tip stealing. W…

A company that would allow that in the first place should not be trusted later on, claiming they "fixed it". It's such a clear violation of ethics and morals. I don't get how a corporation can literally steal money from it's employees, say it's "sorry" and it "fixed the problem" and get off freely.

Well spending millions of dollars on Prop 22 ensured that they're technically not "employees"
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