DoorDash IPO: Insights into Online Performance

Food delivery giant DoorDash plans to list on the NYSE under the ticker ‘DASH’ on December 8, 2020. The company is hoping to raise up to $3.14B from the event, up from $2.8B previously. That would give it a value of $35B on a fully diluted basis.

Ahead of this hotly-anticipated date, we took a deep dive into DoorDash’s digital trends to get a better grasp of how the company is performing.

So what do the digital trends have to say?

As part of the DoorDash IPO alternative data analysis we looked at:

• Trends in the number of monthly visits to the site globally
• Competition in the US
• How its mobile app is performing

Strong Growth In Website Traffic

DoorDash is indeed the market leader when it comes to visitor numbers. From January 2018- October 2020, the food delivery company racked up an impressive 817.7M website visits – easily beating rival ubereats.com (with 713.6M).

Also, note doordash.com’s traffic trajectory from February to April. DoorDash website traffic more than doubled from 20.5M to 47.2M. And despite a small stumble, growth has continued to rise.

For rival grubhub.com, the growth has been much more muted. And while ubereats.com has also seen a steep increase in traffic over the last few months, it continues to lag DoorDash.

• Pro Tip:Going forward, investors will want to keep a close eye on ubereats’ trajectory to ensure that DoorDash continues to stay one step ahead. 

While DoorDash demonstrates clear US dominance, in Canada, it’s a different picture. There, UbereEats takes the number 1 spot, with 3.5M visitors in October vs Dash’s 2.8M.

Website Performance Trends vs Rivals

Compared with other similar websites, DoorDash has a strong conversion rate of 30.68% (on a US basis from the beginning of the year to the end of October). That compares very favorably against ubereats’ 24.71% and postmates’ 17.97%.

This means that DoorDash is effectively converting its traffic into transactions – which is crucial to increase revenue per visitor, and reduce the cost of customer acquisition.

What’s more, we can see this positive outlook reflected across other key website data points.

For instance, DoorDash’s website has a significantly lower bounce rate (for desktop data) than UberEats and Postmates- although Grubhub snatches gold here with a bounce rate of just 17.97% in October vs 18.52% for DoorDash.

Similarly, visitors spend longer on the DoorDash website than they do on Grubhub and Postmates, although slightly less than the average 10 minutes spent on UberEats’ platform.

In general, this is a bullish indicator, as the longer the visit, the more likely the purchase.

DoorDash IPO: #1 On Mobile to Date

On mobile DoorDash boasts the #1 mobile app in the food and drink category with over 3M monthly average downloads. That’s despite a 3% drop in mobile downloads in October vs September.

Across all categories, DoorDash comes out as the #23 top app in the US at the end of October.

So What Does All This Mean?

In its SEC filing, DoorDash calls itself the market leader, but notes that “US consumers on our platform in September 2020 represented less than 6% of the U.S. population as of September 30, 2020.” It adds, “we believe we are in the early phases of broad market adoption.”

This widespread adoption is critical if DoorDash wants to turn a profit. In the first three quarters of 2020, DoorDash revenue more than tripled, to $1.92B, year-over-year, yet the ultimate result was still a net loss of $149M.

Luckily the traffic trends and engagement stats, alongside the mobile app data, paint a bullish picture of DoorDash’s outlook post IPO.

This isn’t the only public offering you need to look out for right now. Travel giant Airbnb and US e-commerce company Wish are also hoping to make their market debuts before the year-end. Learn how to generate unique insights into market-moving events by booking a free Similarweb demo now.

You can also download the full DoorDash IPO backing data here…