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’s Stock Price More Than Doubles in Market Debut

Poshmark Inc.’s stock more than doubled in its trading debut Thursday, reflecting a soaring market for public offerings and expectations that demand for secondhand goods sold online will grow after the economy returns to more normal conditions. Shares of the online marketplace focused on used merchandise opened at $97.50, according to FactSet, above the company’s initial public offering price of $42. That better-than-targeted IPO price valued the company at more than $3 billion, up from a $1.25 billion valuation in 2019. Private companies have been looking to cash in on robust demand from investors for new listings. Companies raised more than […]

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Affirm Shares Skyrocket in Trading Debut

Shares of Affirm Holdings Inc. surged in the company’s trading debut Wednesday. The buy-now, pay-later fintech firm, trading on the Nasdaq under the symbol AFRM, jumped as high as $103 shortly after it began trading around midday, far above its initial offering price of $49. The enthusiastic reception for Affirm shares could indicate that 2021 will be similar to 2020. That was the most lucrative year on record for public offerings in terms of money raised, driven in part by the success of companies like DoorDash Inc. that have benefited during the pandemic from the stay-at-home economy. Still, extreme first-day pops […]

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Forget Uber, Zoom Might Be the Long-Term Threat to Car Sales

So far, the car industry has emerged from the pandemic with just a few dents. The longer-term impact could be uglier. A total of 14.5 million passenger vehicles—a category spanning cars, sport-utility vehicles and pickup trucks—were sold in the U.S. last year, according to Wards Intelligence. That is roughly 15% lower than in 2019, but much better than seemed possible when the first bout of Covid-19 cases prompted widespread dealership closures in the spring. Fourth-quarter sales were only 2% below their level in the same period of 2019. While the fear of catching Covid-19 kept some people away from lots, much […]

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Brexit Forces Bankers to Shift Trading of European Stocks Out of London

The fallout from Britain’s split from the European Union showed itself on the first trading day of the year as a big chunk of dealing volume in EU stocks moved from London to venues located in Amsterdam, Paris and the Continent’s other financial centers. Britain’s membership of the EU had meant the region’s banks and investors could bypass the home exchanges of stocks such as Paris-listed luxury-goods giant LVMH Moët Hennessy Louis Vuitton SE and Amsterdam-listed Just Eat Takeaway.com NV, the big food-delivery company, and trade them in London over alternative venues. Those venues included Turquoise, a trading facility majority-owned by […]

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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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