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DoorDash, Uber Eats Have Duopoly And Are Here To Stay, Cramer Says

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DoorDash, Uber Eats Have Duopoly And Are Here To Stay, Cramer Says

CNBC's Jim Cramer shared his thoughts Wednesday morning on the DoorDash (NYSE: DASH) IPO.

Cramer on DoorDash: “There is an interesting duopoly developing between DoorDash and Uber Eats,” Cramer said.

He referred to DoorDash having around 50% market share and Uber Technologies (NYSE: UBER) following closely behind.

Related Link: DoorDash IPO: 5 Key Takeaways Investors Need To Know

After Pandemic: Cramer was asked what happens to DoorDash and competitors after the pandemic is over.

Cramer thinks a lot of people will still choose to have food delivered. He also said more restaurants and businesses will be open, which could increase the number of partners and customers for DoorDash.

“It’s here to stay,” Cramer said, referring to food delivery.

The only worry Cramer has is restaurants' ability to pit food delivery companies against each other, which could hurt margins and lead to more consolidation: “I don’t think these companies have a decline in earnings.”

Cramer on IPO: The thing Cramer is watching for after the IPO is to see whether insiders cash out. He doesn’t want to see investors get hurt chasing shares of DoorDash in its highly anticipated IPO.

DoorDash shares priced at $102 Tuesday.

 

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Posted-In: CNBC DoorDash Jim Cramer Uber EatsNews IPOs Media

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