🦧 dash x meta
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🏍️ i’ve been waiting for this
if you’ve ever used facebook marketplace… you feel the pros and cons. for one, i like that i can buy used products from people with real profiles (unlike craigslist), not to mention how easy it is to filter products by distance from you, shipping/pickup, etc.
but the hardest part is to get people moving
seriously, so many times when i’ve tried selling stuff there, potential buyers would make promises and never show up or just never respond for days “because of work”
enter – doordash. per the wsj, the dash x meta collaborative service "will pick up and deliver items that fit in a car trunk to destinations up to 15 miles away [within 48 hours]”
okay, so i may still have to go pick up that used couch two miles away, but this is great
the two companies have confirmed that they’ve tested the partnership in a few cities, but further details on the partnership structure (and relevant economics of it) are unknown at the time
for the two companies too
this is meta's attempt to get more gen z users to use the facebook app
doordash, with its already-growing infrastructure, can simply expand its service beyond meals and groceries – this could be a way to improve the company's margins if the deal structure allows doordash to be paying relatively less fees to the various parties in the value chain
quick reminder: btw, META is down 47% and DASH is down 49% year-to-date
imo: their share prices could use a little help from the synergy (hopefully), but honestly, unless doordash’s margins improve from this opportunity, even if doordash’s revenue grows, it might not be easy for doordash’s valuation to grow.
there are too many competitors (i.e. uber) that are competing to sell quickness as a service, more than just food
for meta as well - this could give meta more insights into customer behavior and trends data, but how much revenue growth this will bring in for meta relative to meta’s entire suite of products is unclear at the moment
but as always, i could be underestimating…
happy tuesday y’all!!
💡 something im thinking about
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