We have seen an explosion in new Covid cases over recent weeks across the developed world. In the US, the 7-day average for new cases has grown from approximately 70k per day to nearly 160k per day in the past two months. That doesn’t even really count the hyper-contagious new Omicron variant, which promises to further bolster that data.
That has put Covid back on the front page for investors, which should drive interest toward groups that saw strong performance last year.
One such group was the food delivery stocks, as people stopped going out for dinner and to the grocery store, and ordered their food online instead to reduce risk of exposure.
With that in mind, we take a closer look at some of the more interesting names in a group containing stocks like Delivery Hero SE ADR (OTC US:DELHY), Two Hands Corp. (OTC US:TWOH), Uber Technologies Inc. (NYSE:UBER), Just Eat Takeaway.com N.V. ADR (Nasdaq:GRUB), Lyft Inc. (Nasdaq:LYFT), DoorDash Inc. (NYSE:DASH), and Amazon.com, Inc. (NASDAQ:AMZN).
Uber Technologies Inc. (NYSE:UBER) frames itself as a company that operates a technology platform for the mobility of both people and things.
The firm offers multi-modal people transportation, restaurant food delivery, and connecting freight carriers and shippers. It operates through its Rides, Eats, Freight, Other Bets and ATG and Other Technology Programs segments.
Uber Technologies Inc. (NYSE:UBER) recently announced, along with Motional, a global driverless technology leader, a new partnership to launch autonomous deliveries for Uber customers, starting in Santa Monica in early 2022. Motional’s all-electric vehicles will conduct deliveries of a curated set of meal kits from select restaurants on Uber Eats. The partnership represents industry-shaping firsts for both companies; Motional’s expansion into driverless delivery and Uber’s first on-road delivery partnership with an autonomous vehicle (AV) technology provider.
“Today, Motional enters the autonomous delivery market,” said Karl Iagnemma, Motional’s President and CEO. “We’re proud that our first delivery partner is Uber and are eager to begin using our trusted driverless technology to offer efficient and convenient deliveries to customers in California. We’re confident this will be a successful collaboration with Uber and see many long-term opportunities for further deploying Motional’s technology across the Uber platform.”
And the stock has been acting well over recent days, up something like 13% in that time.
Uber Technologies Inc. (NYSE:UBER) managed to rope in revenues totaling $4.8B in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 54.8%, as compared to year-ago data in comparable terms. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($6.9B against $8.1B, respectively).
Two Hands Corp. (OTC US:TWOH) is interesting because it’s like having access to investing in a startup in the delivery space, but on the public market.
The company recently pivoted to a delivery model featuring its Gocart.city, which bills itself as an online grocery delivery market that services the Greater Toronto Area and beyond. It curates and delivers the freshest produce and specialty foods in Southern Ontario, with plans on expanding to other major markets. It also recently put out a corporate update highlighting some stunning early-stage growth.
Two Hands Corp. (OTC US:TWOH), in its update, noted that it has grown its grocery category to over 2,700 items, its customer base to over 1,000, its delivery schedule to 6 days a week, its delivery area to a wider radius. The growth is yielding significant month over month results in orders, with October online orders exceeding all Q2 orders, and November orders up another 39% growth from October.
The company also noted that it is now able to service the growing student grocery programs for two major universities in the Toronto area – a unique program that will be expanded in 2022 and offered to more universities and colleges in Ontario with over 100,000 students.
At $0.001 per share, you can see why we are pointing it out.
To make the picture even more interesting, the company completed CAD$1 million dollars in series D funding this year and reduced its overall debt by more than $950,000. The company also noted that it is in the process of listing on the Canadian Stock Exchange.
Two Hands Corporation, (OTC US: TWOH), in short, is a rapidly growing startup in the delivery space with a very cheap price tag for new investors. The company appears to be on a trajectory that could put a lot of strong catalysts on display to attract new investors in 2022, including strong growth, expansion, and a major exchange listing.
DoorDash Inc. (NYSE:DASH) engages in the design, development, and operation of a food delivery and logistics platform for consumers in the United States, Canada, and Australia.
The company connects consumers with their favorite local and national businesses in more than 7,000 cities across the United States, Canada, Australia, Japan, and Germany. Founded in 2013, DoorDash enables local businesses to address consumers’ expectations of ease and immediacy and thrive in today’s convenience economy. By building the last-mile logistics infrastructure for local commerce, DoorDash is bringing communities closer, one doorstep at a time.
DoorDash Inc. (NYSE:DASH) recently announced that it is introducing ultra-fast grocery deliveries in 10-15 minutes beginning with DashMart in New York City.
According to its release, DashMart offers more than 2,000 items, including a wide assortment of fresh and frozen grocery staples, snacks, household goods, and local products to fulfill any last minute shopping needs – whether you forgot an ingredient for tonight’s dinner, or don’t have time to get more eggs and milk midweek. To start, ultra-fast deliveries will be offered from a new DashMart location in Chelsea, with more locations and partners coming over the next few months.
While this is a clear factor, it has been incorporated into a trading tape characterized by a pretty dominant offer, which hasn’t been the type of action DASH shareholders really want to see. In total, over the past five days, shares of the stock have dropped by roughly -3% on above average trading volume. All in all, not a particularly friendly tape, but one that may ultimately present some new opportunities.
DoorDash Inc. (NYSE:DASH) managed to pull in revenues of $1.3B during its most recently reported quarterly financial data, hitting top line growth of 45%. In addition, the company has a strong balance sheet, with cash levels exceeding current liabilities ($4.2B against $1.3B).
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