| A company that has never made a profit valued at £7bn on 11:32 - Mar 8 with 1565 views | Bluefish |
No different to the crazy tesla share prices despite the fact they make losses on cars or air bnb or uber previously having crazy share prices compared to their markets |  |
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| A company that has never made a profit valued at £7bn on 11:38 - Mar 8 with 1545 views | StokieBlue |
| A company that has never made a profit valued at £7bn on 11:32 - Mar 8 by Bluefish |
No different to the crazy tesla share prices despite the fact they make losses on cars or air bnb or uber previously having crazy share prices compared to their markets |
I think it's quite different to Tesla.
Tesla is very clearly overvalued but they have the scope to have large margins in the future and with their battery tech they have possibly offshoots (Powerwall etc).
With deliveroo it's hard to see how they can increase their margin, there is a finite amount people are willing to pay to get food delivered to their door. It's good they are giving shares to riders but they could also be affected by the Uber ruling on staff.
It's also hard to see how they will ever have a better year than this one, once restrictions are limited I don't see why people will be ordering as many takeaways as this year which makes this statements pretty bad:
"However, the business remains loss-making, although its underlying loss for 2020 reduced to £223.7m from £317.3m in 2019."
Probably will be the standard dramatic rise on IPO opening then all the investors get out of their positions and it falls quite dramatically. Might rise again in the future but that depends on actual metrics rather than sentiment.
SB [Post edited 8 Mar 2021 11:39]
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| A company that has never made a profit valued at £7bn on 11:44 - Mar 8 with 1482 views | WD19 |
| A company that has never made a profit valued at £7bn on 11:38 - Mar 8 by StokieBlue |
I think it's quite different to Tesla.
Tesla is very clearly overvalued but they have the scope to have large margins in the future and with their battery tech they have possibly offshoots (Powerwall etc).
With deliveroo it's hard to see how they can increase their margin, there is a finite amount people are willing to pay to get food delivered to their door. It's good they are giving shares to riders but they could also be affected by the Uber ruling on staff.
It's also hard to see how they will ever have a better year than this one, once restrictions are limited I don't see why people will be ordering as many takeaways as this year which makes this statements pretty bad:
"However, the business remains loss-making, although its underlying loss for 2020 reduced to £223.7m from £317.3m in 2019."
Probably will be the standard dramatic rise on IPO opening then all the investors get out of their positions and it falls quite dramatically. Might rise again in the future but that depends on actual metrics rather than sentiment.
SB [Post edited 8 Mar 2021 11:39]
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Once firmly established presumably they will get bought by Amazon.....
......or by someone else keen to prevent Amazon getting them and totally sewing up the personal delivery market. |  | | |
| A company that has never made a profit valued at £7bn on 11:45 - Mar 8 with 1478 views | RegencyBlue |
| A company that has never made a profit valued at £7bn on 11:38 - Mar 8 by StokieBlue |
I think it's quite different to Tesla.
Tesla is very clearly overvalued but they have the scope to have large margins in the future and with their battery tech they have possibly offshoots (Powerwall etc).
With deliveroo it's hard to see how they can increase their margin, there is a finite amount people are willing to pay to get food delivered to their door. It's good they are giving shares to riders but they could also be affected by the Uber ruling on staff.
It's also hard to see how they will ever have a better year than this one, once restrictions are limited I don't see why people will be ordering as many takeaways as this year which makes this statements pretty bad:
"However, the business remains loss-making, although its underlying loss for 2020 reduced to £223.7m from £317.3m in 2019."
Probably will be the standard dramatic rise on IPO opening then all the investors get out of their positions and it falls quite dramatically. Might rise again in the future but that depends on actual metrics rather than sentiment.
SB [Post edited 8 Mar 2021 11:39]
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Smoke and mirrors! |  | | |
| A company that has never made a profit valued at £7bn on 11:45 - Mar 8 with 1479 views | Darth_Koont |
Was re-watching Silicon Valley and there was a discussion that touched on this area.
In summary, the guy who created the company said they should start selling their product and earn some money. The financial backer said no. The founder asked “Isn’t the idea of a company to make money?” And the backer replied that the idea of a company is in getting the highest valuation of its worth – and that’s easier to do when they’re making a loss as that can be classed as pre-revenue rather than any real idea of their revenue if they actually try and fail to make a profit.
Obviously a satire but that seemed startlingly accurate with regard to tech start-ups and those companies promising some paradigm shift like Tesla. Despite using technology that is available to all.
In reality, the only thing these excessive valuations are betting on is that the massive over-the-top assessment of their potential will give them the financial and emotional/brand clout to monopolise a market. That’s pretty much what happened with Amazon. |  |
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| A company that has never made a profit valued at £7bn on 11:49 - Mar 8 with 1443 views | Steve_M |
Still, doing better than Greensill at the moment!
For those not aware, a very dubious financing model has come unstuck. Greensil are advised by David Cameron, funded by Softbank and regulated by BaFin. A trinity of success.
https://www.ft.com/content/68ea9df2-aa69-4a0b-9462-d3ed6491cee6 |  |
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| A company that has never made a profit valued at £7bn on 12:58 - Mar 8 with 1342 views | C_HealyIsAPleasure |
| A company that has never made a profit valued at £7bn on 11:38 - Mar 8 by StokieBlue |
I think it's quite different to Tesla.
Tesla is very clearly overvalued but they have the scope to have large margins in the future and with their battery tech they have possibly offshoots (Powerwall etc).
With deliveroo it's hard to see how they can increase their margin, there is a finite amount people are willing to pay to get food delivered to their door. It's good they are giving shares to riders but they could also be affected by the Uber ruling on staff.
It's also hard to see how they will ever have a better year than this one, once restrictions are limited I don't see why people will be ordering as many takeaways as this year which makes this statements pretty bad:
"However, the business remains loss-making, although its underlying loss for 2020 reduced to £223.7m from £317.3m in 2019."
Probably will be the standard dramatic rise on IPO opening then all the investors get out of their positions and it falls quite dramatically. Might rise again in the future but that depends on actual metrics rather than sentiment.
SB [Post edited 8 Mar 2021 11:39]
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Just to pickup on one point, I believe it’s widely reported that Deliveroo lose money on every delivery they make still. So whilst 2020 was undoubtedly a boon for income that loss was also increased as a result - meaning the improvement from 2019 would have been much bigger in a ‘normal’ year
I do also think there’s some pretty obvious avenues for more natural growth, eg. new markets, more restaurants diversifying into dine at home options, ghost kitchens etc. I certainly wouldn’t be investing but if I was to bet on someone in that space I’d probably rather back a Deliveroo than, say, JustEat
But yes it never ceases to amaze me how some companies seem to go from strength to strength whilst burning through hundreds of millions. On which note, Netflix anyone...? |  |
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| A company that has never made a profit valued at £7bn on 13:31 - Mar 8 with 1259 views | clive_baker |
| A company that has never made a profit valued at £7bn on 11:38 - Mar 8 by StokieBlue |
I think it's quite different to Tesla.
Tesla is very clearly overvalued but they have the scope to have large margins in the future and with their battery tech they have possibly offshoots (Powerwall etc).
With deliveroo it's hard to see how they can increase their margin, there is a finite amount people are willing to pay to get food delivered to their door. It's good they are giving shares to riders but they could also be affected by the Uber ruling on staff.
It's also hard to see how they will ever have a better year than this one, once restrictions are limited I don't see why people will be ordering as many takeaways as this year which makes this statements pretty bad:
"However, the business remains loss-making, although its underlying loss for 2020 reduced to £223.7m from £317.3m in 2019."
Probably will be the standard dramatic rise on IPO opening then all the investors get out of their positions and it falls quite dramatically. Might rise again in the future but that depends on actual metrics rather than sentiment.
SB [Post edited 8 Mar 2021 11:39]
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This.
I question the path to profitability for Deliveroo as the unit economics don't really stack up, and the issue with that is they will struggle to grow themselves into profit. They're already pushing the limits of what they can charge restaurants as a % of the delivery fee, and there's a finite amount of deliveries that can be made per hour. They're working to optimise all of the bits in between, incentivising restaurants to have the collections ready for the driver etc to reduce down time, but even then they're working to such skinny margins after direct costs.
Tesla is a different proposition altogether. It too does look overvalue based on just about any metric. [Post edited 8 Mar 2021 13:33]
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| A company that has never made a profit valued at £7bn on 13:33 - Mar 8 with 1246 views | PrideOfTheEast |
| A company that has never made a profit valued at £7bn on 11:38 - Mar 8 by StokieBlue |
I think it's quite different to Tesla.
Tesla is very clearly overvalued but they have the scope to have large margins in the future and with their battery tech they have possibly offshoots (Powerwall etc).
With deliveroo it's hard to see how they can increase their margin, there is a finite amount people are willing to pay to get food delivered to their door. It's good they are giving shares to riders but they could also be affected by the Uber ruling on staff.
It's also hard to see how they will ever have a better year than this one, once restrictions are limited I don't see why people will be ordering as many takeaways as this year which makes this statements pretty bad:
"However, the business remains loss-making, although its underlying loss for 2020 reduced to £223.7m from £317.3m in 2019."
Probably will be the standard dramatic rise on IPO opening then all the investors get out of their positions and it falls quite dramatically. Might rise again in the future but that depends on actual metrics rather than sentiment.
SB [Post edited 8 Mar 2021 11:39]
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Was thinking the same last night. I’m kicking myself slightly as I had an opportunity to work there a couple of years ago and the stock options were sizeable - would have been laughing at a valuation at the level they’re at today.
Classic pathway to leveraged go private from public at some point I expect followed by a consolidation with something else. Can’t see it operating as a standalone listed company for a long time but it’s a clear pay day for the initial investors, execs and advisors. |  | | |
| A company that has never made a profit valued at £7bn on 13:37 - Mar 8 with 1220 views | Ewan_Oozami |
| A company that has never made a profit valued at £7bn on 13:31 - Mar 8 by clive_baker |
This.
I question the path to profitability for Deliveroo as the unit economics don't really stack up, and the issue with that is they will struggle to grow themselves into profit. They're already pushing the limits of what they can charge restaurants as a % of the delivery fee, and there's a finite amount of deliveries that can be made per hour. They're working to optimise all of the bits in between, incentivising restaurants to have the collections ready for the driver etc to reduce down time, but even then they're working to such skinny margins after direct costs.
Tesla is a different proposition altogether. It too does look overvalue based on just about any metric. [Post edited 8 Mar 2021 13:33]
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Don't forget for companies like Deliveroo with low margins but big customer bases, their real value is in the data they possess rather than what they actually do... |  |
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| A company that has never made a profit valued at £7bn on 13:46 - Mar 8 with 1177 views | itfcjoe |
| A company that has never made a profit valued at £7bn on 13:33 - Mar 8 by PrideOfTheEast |
Was thinking the same last night. I’m kicking myself slightly as I had an opportunity to work there a couple of years ago and the stock options were sizeable - would have been laughing at a valuation at the level they’re at today.
Classic pathway to leveraged go private from public at some point I expect followed by a consolidation with something else. Can’t see it operating as a standalone listed company for a long time but it’s a clear pay day for the initial investors, execs and advisors. |
One of my friends was a Project Director there working closely with UK MD, but resigned over the way they treat their riders and gig economy stuff......
https://www.ft.com/content/a52c64be-6580-11e7-9a66-93fb352ba1fe
Did a big piece with Channel 4 News and on the day it was going to air he had to let all the management team know which was obviously difficult.......and then an hour before it went out Trump did something ridiculous and it got pulled, and then exactly the same thing happened when it was next due to go out.....! |  |
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