Indian food-delivery firm Zomato, backed by billionaire Jack Ma’s Ant Group and Uber, plans to raise up to 82.5 billion rupees ($1.1 billion) via an initial public offering in what would be the country’s largest stock-market listing this year.
The startup’s initial prospectus filed with the Securities and Exchange Board of India this week showed it plans to issue new shares to raise 75 billion rupees ($1.01 billion), while its top shareholder Info Edge India will offer shares worth 7.5 billion rupees ($101.2 million).
The company’s listing plans come as India combats a crippling coronavirus wave, with at least 300,000 new infections being recorded every day in the past week. Official fatalities have topped 200,000 as of Thursday, but the real number is thought to be far higher as the country’s health infrastructure appears to be collapsing under the volume of new cases.
Re-enforced lockdowns across the country have driven many Indian consumers to shift their spending online. Zomato, which serves around 70 million customers each month, saw its revenue grow 5.5 times between 2018 and 2020, after recording its highest-ever order value in history during the pandemic.
“The accelerated growth of our business stemming from the effects of the COVID-19 pandemic may not continue in the future,” the company said in its prospectus.
Zomato was founded as “Foodiebay” in 2008 by Deepinder Goyal and Pankaj Chaddah, the entrepreneurial alumni of the prestigious technical university IIT. What began as a weekend project for them grew into a well-known unicorn now present in 24 countries. At its last fundraising round in February, the company was valued at $5.4 billion.
Both the US and the UK have also seen food-delivery companies capitalizing on the stay-at-home environment during the pandemic with Deliveroo, DoorDash, and Grab all launching IPOs in the past six months.
Whether it’s getting food from your favorite local restaurant or getting groceries from the store, mobile applications like Uber Eats have been in high demand recently. And for the times you’re not eating alone, splitting the check can be relatively easy with Uber Eats’ group ordering tool.
The feature lets you send a link to everyone in your party, allowing them to add their order using their own devices. The order can then be paid for by one person, and sent to a single address.
It’s great if you don’t want to pass your phone around to everyone in the room. Just note that everyone involved will need to have their own Uber Eats account.
Here’s how to place a group order on the Uber Eats mobile app and online.
How to place an Uber Eats group order on the mobile app
1. Open the Uber Eats app.
2. Select a restaurant using the app’s Home dashboard or the search tool.
3. Once you’ve decided on a restaurant, click the group order button in the top-right hand corner.
4. Determine your delivery address and order spending limit. Then tap “Share group order.”
5. A window will appear with mobile sharing options. Share the group order link via text, social media, or email with each member of your group.
6. After all orders have been submitted, tap “View cart.”
7. Next, select “Go to checkout.”
8. Uber Eats will then ask you to confirm everyone has submitted their order. Choose “Continue” when you’re ready.
9. After verifying the items and price, hit “Next.”
10. You’ll be asked to select a tip amount, and how you want to pay. Once you’re ready, tap “Place order.”
How to place an Uber Eats group order through the website
1. Go to Uber Eats on your favorite browser and log in.
2. Select a restaurant using the app’s Home dashboard or the search tool.
3. Choose the restaurant you want to order from.
4. In the restaurant’s banner image, click the “Start group order” icon.
5. Use the “Edit” buttons to adjust your spending limit or delivery address.
6. Click “Create order.”
7. A box will appear with a link. Share it via text, social media, or email with each member of your group. Share the link to allow others to add to the Group Order.
8. After all orders have been submitted, you can begin checkout and place your order. Just remember that once you head to checkout, you can’t edit the group order without starting from scratch.
Food delivery apps like Uber Eats and DoorDash seem nearly ubiquitous in the restaurant industry – if you’re running a restaurant and you want people in the area to know about you, getting on at least one of these apps is essential for your exposure.
These apps, however, take a cut of what restaurants earn – even if you order pickup and not delivery. Most of them take 20% to 40% of each order, which is, in many cases, nearly the entire profit margin on the food they’re selling.
The people behind ChowNow saw this trend and worried that it would take down the small, local restaurant as we know it, and decided to do something about it. ChowNow is a service that sets up food delivery for restaurants on its own app (available on Android and iOS), like other food delivery service apps. However, the company doesn’t charge a percentage for it.
What to know about ChowNow
Unlike UberEats or DoorDash, ChowNow doesn’t stop after putting a restaurant on its app. It does more – it helps make it easy for a restaurant to have its own ordering app, and an easy-to-use order function on its website.
Instead of taking a percentage of each order, ChowNow structured its service as a paid monthly subscription – the base cost is $149 a month, with a one-time $399 setup fee per location, but these prices go down when a business signs a contract for a longer period. Its annual plan is $119 a month with a $199 initial setup fee, and the two-year annual plan is $99 a month, with the same discounted setup fee.
On top of helping a restaurant set up its own ordering app and website, ChowNow also offers a wide range of other services to customers, including comprehensive training, an iPad for order consolidation, an ongoing marketing strategy, and 24/7 support.
One thing to note about ChowNow is that it is not actually a delivery service. ChowNow does not employ its own delivery drivers – it is, more or less, a marketing team and middle man. Instead, the company gives restaurants the option to hire and use their own delivery drivers for orders that go through the site.
If restaurants don’t want to hire delivery drivers, though, they’re not out of luck – ChowNow has partnerships with some of the delivery services they are competing with, including Postmates, DoorDash, UberEats, in different areas. ChowNow isn’t trying to drive these companies out of business – just reimagine how they function so the process works for everyone.
ChowNow can help customers, too
As a customer, using ChowNow doesn’t have to be that different than using other ordering apps. It works more or less the same, but when you use it instead of one of the other apps, you’re doing your part to help local restaurants keep more of what they earn.
When you download the ChowNow app, it looks a lot like any other ordering app you may be familiar with. You enter your location, and it shows you a list of available restaurants in your area, and you can tap on them to see their menu. From there, you just add items to your cart, check out, and wait.
If that’s all you use ChowNow for, then you’re still helping your local small businesses – plus, you might be helping yourself out, too. Because of the high commissions on apps like GrubHub and Postmates, many restaurants increase their prices on the app in order to compensate for what would otherwise be a net loss. So when you use an app that charges restaurants a fee, you could end up paying more for your food than you need to.
However, customers can also look at the ChowNow app as a map to new restaurants – ideally, they would try a restaurant once, and, if they decide they really like it, simply go and download that restaurant’s app, rather than adding it to a list of favorites. This puts customers in a position to get bonuses and deals that the company may be offering.
DoorDash commenced public trading on Wednesday, opening at $182, which was 78% above its initial public offering price. The stock is listed on the New York Stock Exchange.
The food-delivery company raised roughly $3.4 billion in its initial public offering, selling shares at $102 each. The final pricing exceeded its previously expected range of $90 to $95 per share, and gave DoorDash a valuation of roughly $34.2 billion. That sum handily surpasses the $15 billion valuation it achieved in the private market earlier this year.
DoorDash’s IPO marks one of the year’s biggest offerings and caps a historic year for public debuts. US listings already raised a record $156 billion in 2020, according to Bloomberg data. Airbnb and Wish-parent ContextLogic are still poised to enter the market this month, with the former set to begin trading on Thursday.
Overwhelming investor demand placed shares on track to open as high as $195 before trading began. Its ultimate opening level of $182 is more than double the $75 to $85 range DoorDash expected to price shares as recently as Thursday.
DoorDash’s debut establishes it as the highest-valued food-delivery company. The firm trades under the ticker “DASH.”
While the coronavirus slashed sales across the US economy, stay-at-home orders led DoorDash to thrive through the pandemic. Third-quarter revenue leaped 268% from the year-ago period as a larger portion of Americans turned to food delivery services.
DoorDash priced its shares at $102 each on Tuesday ahead of its highly anticipated initial public offering, CNBC’s Leslie Picker reported. The final pricing comes in well above the expected range.
That pricing will allow the company to raise $3.4 billion when it begins trading on Wednesday, according to a regulatory filing. It also gives the firm a $34.2 billion valuation, based on common stock outstanding, and $38.7 billion on a fully-diluted basis. It will mark one of the year’s largest market debuts.
The pricing brings DoorDash well above the roughly $15 billion private valuation it achieved earlier in 2020, which was already a major increase from the $1.4 billion it was worth in 2018.
DoorDash is poised to become the highest-valued food-delivery company when it debuts on the New York Stock Exchange. The company is set to trade under the ticker “DASH.”
DoorDash lifted its IPO price range on Friday to $90 to $95, from $75 and $85 per share. Its latest target sets it up to be among the year’s five largest offerings.
IPOs from DoorDash, Airbnb, Wish-parent ContextLogic, and others are set to drive the busiest December on record for public offerings. US listings have already raised a record $156 billion in 2020, according to Bloomberg data, partially fueled by the year’s blank-check frenzy.