(FINANCIAL TIMES) When shares in the US food delivery app DoorDash jumped by 86 per cent on their first day of trading last month, it did not take long for sceptics to start frothing about another tech bubble.
DoorDash has never generated annual net profits. It has warned investors that the losses will only continue as it prioritises growth. Analysts have questioned whether these “on-demand” e-commerce businesses can ever make money. Yet DoorDash is valued at around US$50 billion (S$66 billion); Uber’s market capitalisation is now around US$100 billion.
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