The parent company of Caviar, DoorDash Inc., has reportedly been in talks with both Postmates and Uber in the past year about mergers in various combinations between the three companies — pointing to the fact that the food delivery app industry may be feeling some growing pains.
The news comes from a Wall Street Journal piece that also reports that SF-based Postmates appears to be back on track to have an IPO, after quietly filing for one last year. And a source tells the Journal that Postmates decided not to pursue the public offering after the "lackluster" IPOs of both Uber and Lyft, and the disaster of WeWork's botched offering.
SF-based DoorDash is also said to be pursuing an IPO, after acquiring New York-based Caviar last August — purchasing the smaller company from Square for $410 million.
Meanwhile Chicago-based GrubHub has reportedly seen sinking profits after it went public, and its shares have gone down 39 percent in the last year. Is it any wonder that they're partnering with ghost kitchens and putting up fake websites for restaurants without their consent?
As Eater writes today, all this could likely spell doom for one or another of these companies — and here in SF we'll all seen our share of Sprigs and Muncherys go the way of the dodo. And/or one will be subsumed by another and another until there's only one delivery app that can charge whatever they like.
Also, Eater points to this story from last week, about the federal judge (the same one that is presiding over PG&E's bankruptcy), who is having none of DoorDash when it comes to their workers being classified as contractors. That doesn't bode so well for the company either...