Regulators Are Fed Up With Food-Delivery Fees

American consumers have been forced to eat food-delivery costs sometimes nearly as big as the meals themselves. Regulators are fed up. In addition to new laws boosting compensation and benefits for delivery drivers, restaurant protections such as pandemic-related commission caps have been proliferating at the city and state levels. Consumer protections could be next. New laws have been costly for delivery players that have been struggling to generate consistent profits lately. On its third-quarter conference call, Uber , which owns and operates Uber Eats, suggested it wouldn’t absorb all of the added costs related to the passage of Proposition 22 in […]

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Poshmark Set to Join the IPO Boom

Poshmark Inc., the online marketplace for secondhand goods, is set to go public as early as Thursday, the latest e-commerce site to tap the buoyant initial public offering market, while brick-and-mortar stores have been hard hit by the coronavirus pandemic. A number of digital marketplaces, including Poshmark, reported an increase in people selling goods in spring of 2020, as a way to drum up extra income and stave off boredom during widespread lockdowns. Poshmark sellers list everything from $17 reusable Starbucks cups to $3,000 Louis Vuitton handbags. While many traditional apparel companies struggled to survive, Poshmark was profitable for the first […]

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New California Law Could Spoil Some Growth for Food-Delivery Platforms

Just how valuable has restaurant selection been to delivery platforms’ growth over the past year? We could soon find out. A California bill is set to require third-party delivery platforms to have stated agreements in place with merchants to deliver food orders starting Jan. 1. The bill will effectively end the growth-strategy platforms including DoorDash and Postmates have historically employed to rapidly augment their delivery footprints. Delivery platforms will have to remove so-called unpartnered food merchants, or those with which they don’t have a stated agreement, from their apps in California. Without an agreement, a delivery platform can list a restaurant’s […]

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DoorDash, Grubhub, Others Could Face a Pared-Down Menu

Investors bidding up newly public shares of DoorDash DASH -0.53% and its competitors shouldn’t take for granted the historically fragile relationship between food-delivery platforms and the restaurants they serve. While it is unclear just how sticky eaters’ business will be on delivery apps once the coronavirus pandemic ends, their loyalty could in many cases depend upon whether their favorite restaurants stay around. That is hardly a guarantee. Delivery platforms have been essential to the survival of many restaurants this year, bringing them business even while their dining rooms have remained closed down. In addition to offering grants and relaxed delivery fees […]

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Wish Parent ContextLogic Starts Trading Below IPO Price

Shares of the parent company of e-commerce site Wish started trading 5% below their initial-public-offering price in their Wednesday debut, in contrast to sharp gains recorded last week when Airbnb Inc. and DoorDash Inc. came to market. The stock of ContextLogic Inc. WISH -11.08% opened at $22.75 on Nasdaq, below its IPO price of $24 and placing the company’s value at about $16.2 billion. Under the ticker “WISH,” shares recently traded at $23.28. The IPO generated about $1.1 billion in gross proceeds for the company. Founded in 2010, the San Francisco-based company focuses on providing mass-produced, low-price items. Products sold on […]

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WSJ News Exclusive | Roblox Delays IPO Until Next Year

Roblox Corp. delayed its planned IPO after company officials decided that the gravity-defying performance this week of Airbnb Inc. and DoorDash Inc. made it too difficult to determine the right price for the videogame company’s shares. Roblox had been set to go public in December, part of a year-end rush of companies seeking to tap the red-hot market for initial public offerings. Just like with other recent issues, the San Mateo, Calif., company, valued at around $4 billion earlier this year, was expected to draw strong investor demand. But it announced to employees in a memo late Friday that the listing […]

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DoorDash, Facebook, Walt Disney: Stocks That Defined the Week

DoorDash Inc. DASH -5.91% The initial public offering market is still on fire even as the weather cools. Food-delivery company DoorDash shares surged 86% in their first day of trading Wednesday, kicking off an uncharacteristically busy month as the IPO market shatters records. The next day, shares of the home-rental startup Airbnb ABNB -3.77% more than doubled in their market debut, reflecting a soaring market for new stock listings and the company’s ability to navigate the coronavirus-induced downturn in travel this year. Exxon Mobil Corp. XOM -0.48% A new activist investor with a sustainability bent wants Exxon Mobil to act faster […]

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For DoorDash and Airbnb, More Isn’t Necessarily Merrier

If DoorDash DASH -5.78% and Airbnb ABNB 2.36% underdeliver, it will be because its investors expected too much. There is no question retail interest in public offerings has soared this year. In their first day of trading, shares of Airbnb closed more than double where they were priced just one day earlier. DoorDash closed Thursday 82% higher than its own initial-public-offering price. Airbnb is now worth more than five times the implied post-money valuation of its debt raise back in April, according to PitchBook, and more than the combined market values of several of its largest hotel competitors. Day traders aren’t […]

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Disney, Tesla, MetLife: What to Watch When the Stock Market Opens Today

Here’s what we are watching as markets kick into gear Friday. U.S. stock futures and European indexes slipped Friday as politicians signaled an increased likelihood of a disruptive break between the U.K. and European Union. Futures tied to the S&P 500, Dow Jones Industrial Average and Nasdaq-100 futures fell just under 1%. All three indexes are on track to end the week lower. Read our full market wrap here. What’s Coming Up It’s been a wild week for IPOs with DoorDash and Airbnb both bolting out of the gate. Some smaller names debut Friday. Shares in gene therapy company 4D Molecular […]

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Airbnb Shares More Than Double in Market Debut

Airbnb Inc.’s ABNB 121.34% shares more than doubled in their debut on Thursday, reflecting a soaring market for new stock listings and the home-sharing company’s ability to navigate the coronavirus-induced downturn in travel this year. The stock began trading at $146 on the Nasdaq Stock Market, higher than its initial-public-offering price of $68 a share. The opening trade valued Airbnb at $101.6 billion, higher than its IPO valuation of roughly $47 billion, based on a fully diluted share count and proceeds from the offering. Based on the stock’s debut, the company is worth more than Marriott International Inc., Hilton Worldwide Holdings […]

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