Delivery app Instacart raises $200 million in new funding and McDonald's reported that its global sales have improved since the global spread of Covid-19. Yahoo Finance's On The Move panel discusses.
JULIE HYMAN: Melody, you are watching Instacart's valuation, which we just learned today has gone up a lot.
MELODY HAHM: Yeah, Instacart just raised $200 million in new funding. Basically, Julie, it's post money evaluation has more than doubled from the beginning of 2020. So for those who have been trying to figure out this K-shaped recovery, let's recall Instacart, Airbnb, a lot of this kind of Silicon Valley juggernauts have seen their valuations only increase during this period of economic distress for a lot of the country. The round was actually led by investors Valiant Capital and D1 Capital Partners.
Of course, looking at the food delivery and grocery delivery space, it has been quite saturated, but we have seen some consolidation during the coronavirus pandemic. Of course, DoorDash partnered with PetSmart, Macy's, Walgreens, and its own virtual store openings. Uber is in the process of acquiring Postmates for $2.65 billion.
Uber, of course, was originally buying for Grubhub, which ended up getting sucked up by the UK brand Just Eat Takeaway, and a lot of hopes are on Instacart to really have an IPO successfully. We don't know what the timeline looks like just yet, but based off of the numbers about Airbnb burning through cash as it is prepping for its own IPO, we can anticipate that it won't necessarily be a smooth journey to the public market, right?
All of this with the backdrop of Instacart employees being contractors and there being a lot of pushback as they have been the front line employees, those essential employees delivering groceries to elderly folks, being able to be kind of on the frontlines and being exposed to the virus perhaps in ways that many of us are privileged enough not to. So this is constantly a contentious conversation.
We know that Prop 22, that third classification that Postmates, Uber and Lyft and Instacart have really been pouring money into to make sure that they can actually classify their contractors in a third way rather than following the California Law 85, is on the ballot this November. So Julie, fascinating time to see this continue divergence, right, when you think about the success of a brand and perhaps even the employees that are suffering perhaps a different fate.
JULIE HYMAN: Yeah, definitely, let's also quickly talk about McDonald's, because that company came out with same store sales and is raising its dividend.
MELODY HAHM: Yeah, McDonald's said today that its US same store sales in the third quarter did rise about 5% as people are eating more Big Macs. They're really excited about a lot of the collaborations, whether it's with J Balvin, whether it's with Travis Scott, even though many of those menu items, it's just a marketing scheme, right? There is nothing particularly new.
I also do want to mention that they announced that they are launching three new bakery items to really kind of buoy the breakfast market, which has been the hardest hit meal for a lot of these restaurants as people are not going on commutes, as they're not going through drive-throughs and grabbing their Newman's Own coffee and Egg McMuggins on the way to work.
It's the first time in nearly a decade that they'll be announcing three new bakery items that they're hoping will really boost traffic there, and I do want to point out that Starbucks had a similar sort of occurrence, Dunkin Donuts as well, that breakfast foot traffic is down, which is, of course, one of the main selling points for these brands.
JULIE HYMAN: Right. Melody, thanks so much. Dan, thanks so much. Keep it right here on Yahoo Finance.