FOOD DELIVERY

How Far Can Pad Thai Take a Company?

Yesterday, we wrote about the upcoming wave of IPOs and, unsurprisingly, DoorDash was the first one to deliver. 

The food delivery startup released its IPO prospectus, giving the public a comprehensive view of its business before heading to the public markets in the next few weeks. 

High-level overview

The pandemic, which forced so many restaurants to go takeout-only, has been kind to DoorDash.

• Revenue in Q3 more than tripled what DoorDash did in the same quarter in 2019.
• It even turned a profit in its second quarter, which is as close to a magic trick as a food delivery company can perform.

Quick backstory: DoorDash was founded in 2013 by Stanford students, and it’s raised $2.5 billion since, from the likes of SoftBank and other heavy-hitter VCs. 

DoorDash divides people more than cilantro 

While most business writers agree the economics of running a food delivery company are challenging, some are more confident than others in DoorDash’s sustainability.

First, the bull case: 

• DoorDash’s financials revealed a company that was “bigger, growing more quickly, and losing less money” than TechCrunch’s Alex Wilhelm expected. 
• PitchBook mobility sector analyst Asad Hussain agrees: “We think there’s a long runway of growth ahead of them. We think these shifts in consumer behavior are going to be consistent,” he told the Financial Times.

Now, the bears: 

• When Shira Ovide, a tech writer for the NYT, looked at DoorDash’s filing, she saw a document that was “mostly not pretty” and “laced with magical thinking.” She doesn’t fault DoorDash in particular, but instead a broken food delivery system that links restaurants, diners, and couriers together in an inefficient way. 
• These inefficiencies are crystallized in Ranjan Roy’s famous blog about “Pizza Arbitrage.”

Looking ahead...if DoorDash succeeds, it won’t remain a pure-play food delivery company. According to the WSJ’s Eliot Brown, DoorDash has surged to the lead in use of the word “platform” in an IPO prospectus, pummeling WeWork by a count of 646 to 157. 

COVID

Checking in on the "Third Wave"

The death toll from the coronavirus is accelerating along with hospitalizations and cases. State and local governments are implementing new curbs on businesses and social life to once again “flatten the curve.”

• Oregon Gov. Kate Brown announced a two-week "freeze" in the state, which requires bars/restaurants to go takeout-only, gyms to close, and grocery stores to limit capacity. 
• In NYC, Mayor Bill de Blasio suggested the city may have to shut down in-person learning at public schools as early as Monday.

ELECTION

The CEOs of Walmart, Marriott, and JPMorgan Agree on One Thing

We need an orderly transfer of power following the election. 

Concerned execs at more than two dozen major U.S. companies held a videoconference last week to hash out a plan should President Trump refuse to leave office, the AP reported yesterday. While they agreed Trump could pursue legal avenues to challenge the vote count, the CEOs didn’t see any evidence of voter fraud that would change the outcome. 

• On Thursday night, the Cybersecurity and Infrastructure Security Agency declared the election “the most secure in American history.”
• All 50 states were called as of yesterday, with Biden securing 306 electoral votes to Trump’s 232. 

CEOs are ready to wrap this one up. The Business Roundtable—a powerful group of executives from the biggest U.S. companies—released a statement last Saturday congratulating President-elect Biden and Vice President-elect Kamala Harris. 

Looking ahead…business leaders are reportedly prepared to make public statements and talk to GOP legislators in their home states if Trump doesn’t make way for Biden.

SPONSORED BY THE ASCENT

Attention Holiday Shoppers

You won’t find a cash back card better than this one. So cozy up with a cup of hot chocolate and get snowed over by this blizzard worth of perks.

You can avoid interest charges into 2022. You can secure up to $1,148 in value in your pocket. There’s no annual fee. You can apply and get a decision in under two minutes.

Simply put, don’t go on a holiday shopping spree without this card.

Not sure what happened to you when you were reading that, but we were hearing Jingle Bells as we were writing it. 

So remember, if you’re looking to have a holly jolly holiday, stick to the card that allows you to avoid interest until 2022. 

Apply here.

SPORTS

We’d Like to Speak to the Manager

Kim Ng, already the highest-ranking Asian American female baseball executive, just got a promotion. She is the newest general manager of MLB’s Miami Marlins, and the first female GM in any of the major North American men’s sports leagues.  

She’s got a lengthy résumé: Ng got into baseball as an intern for the Chicago White Sox in 1990. After 30 years in the MLB, a couple of assistant GM roles, and at least four interviews for GM positions, she finally broke through with the Marlins. 

Who hired her?

None other than The Other Guys actor and Mariah Carey’s ex-boyfriend, Derek Jeter. This year, Jeter’s Marlins returned to the postseason for the first time since 2003, and hope Ng can guide the team to its first back-to-back playoff appearances in team history. 

Looking ahead: Ng won’t have a lot of cash to build a roster with. The Marlins currently have the lowest projected payroll in the league at $46.5 million, chump change compared to the $175.4 million the defending champion LA Dodgers are working with. 

SPACE

Drogon, Rhaegal, Viserion, and Resilience

A SpaceX Dragon spacecraft, nicknamed “Resilience” by its crew, is scheduled to fire off into the friendly skies tomorrow night. The mission marks the beginning of a new era in space travel where as soon as next year anyone—not just trained astronauts and Targareyans—could ride a Dragon.

Didn’t SpaceX launch a manned mission six months ago? 

Yes, it did...but that was just the Dragon’s beta test. Sunday’s lift-off is the U.S.’ first Federal Aviation Administration-approved, manned space mission since the Space Shuttle was sent to the island of misfit rockets in 2011. It’s also the first ever from a private company. 

Big picture: SpaceX is sending a lot of metal into the sky these days. A version of the Dragon has been hauling cargo to the International Space Station for a decade, and nearly 900 Starlink internet satellites are currently floating in Earth’s orbit. 

How to watch: After being delayed by a day due to winds, the launch will be livestreamed with a scheduled blast-off of 7:27pm ET Sunday night.

+ While we’re here...SpaceX CEO Elon Musk, who may or may not have Covid-19, questioned coronavirus testing accuracy on Twitter.

WHAT ELSE IS BREWING

• Wells Fargo’s former CEO and a top exec were charged by the SEC with misleading investors about the performance of the bank’s core business. 
• Scientists on President-elect Joe Biden’s coronavirus task force said they don’t support a nationwide lockdown to combat rising cases.
• The saga continues: TikTok was granted a 15-day extension by the Trump administration to solidify an agreement with an American buyer.
• DraftKings said it benefited from the return of pro sports last quarter.
• General Motors recalled nearly 69,000 Chevy Bolts over battery fire concerns.

BREW'S BETS

It’s rich. Athletic Greens makes building a healthy habit incredibly easy with its single scoop, nutrient-rich formula of 75 vitamins, minerals, and superfood ingredients. And when you order now, you get a year’s supply of Vitamin D and five travel packs for free—perfect for winter months. Click for health.*

Game until your glutes are sore. Omni takes VR gaming to the next level. It’s the first omni-directional treadmill that lets players walk and run in 360 degrees. Now you can join major investors like Mark Cuban and reserve shares in Omni today.*

Two wild things: 1) Check out the top 100 close-up photography winners of the year or 2) spend some time with zoo animals around the world by scrolling through this interactive compilation of livestreamed exhibits.

Weekend Conversation Starters:

• What’s your favorite Thanksgiving side, and why is it mashed potatoes? 
• Are bespoke smoothies worth $10+ when you include the hassle of cleaning a blender?
• What would you tell your Jan. 1, 2020-self? 
• Hard pivot: Here are some tips for telling your family you don’t plan to come home for the holidays this year.

^{*This is sponsored advertising content}

GAMES

Brew Crossword

Today’s crossword was written with love by Brew Managing Editor Neal Freyman. The puzzle’s theme ties into a certain event happening right now in Georgia—and no, it’s not the Senate runoff races.

Play the crossword here. 

+ Think you have what it takes to write your own? Spoiler: You do. Check out our tutorial then be sure to submit one to crosswords@morningbrew.com. If we select yours, we'll also send you the iconic Brewneck sweatshirt.