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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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, Starbucks, SoftBank, Tesla: What to Watch When the Stock Market Opens Today

Here’s what we are watching as markets kick into gear Thursday. —U.S. stock futures rose ahead of jobless claims and inflation data, as well as a highly anticipated European Central Bank policy decision. Futures tied to the S&P 500 ticked 0.1% higher, suggesting the index is on track for muted gains after the opening bell. Nasdaq-100 futures slid less than 0.1%, pointing to subdued trading in tech stocks a day after Facebook was hit by a series of antitrust lawsuits. What’s Coming Up —National Beverage Corp., maker of LaCroix sparkling water, will release quarterly earnings at 9:15 a.m. ET. Dave & Buster’s, Lululemon, LULU -2.02% […]

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DoorDash, GameStop, Pfizer: What to Watch When the Stock Market Opens Today

Here’s what we are watching as markets kick into gear Wednesday. —U.S. stock futures edged higher, suggesting the major indexes may grind toward new all-time highs after the opening bell as investors bet on fresh fiscal stimulus spending. Copyright ©2020 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8 Source link

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DoorDash Poised to Tap Torrid IPO Market

DoorDash Inc. is set to cash in on the frenzy in initial public offerings. The San Francisco food-delivery company is expected to price its shares Tuesday ahead of a trading debut Wednesday. It is expected to pick a price at the high end of or above its already-increased target range of $90 to $95 a share, according to people familiar with the offering. At $95 or above, DoorDash would be valued at $36 billion or more on a fully diluted basis and including proceeds from the offering, which is expected to raise $3.1 billion or more. That would mark a stunning […]

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