The tech industry revolutionized computers and the internet upon developing search engines. Tech wizards sought to change the age-old process of ordering food delivery through numerous service apps. According to Tech Crunch, Google remains the top search engine while Postmates, UberEats, GrubHub, and DoorDash all battle for delivery market share. Postmates soon may get a boost over its competitors with the impending arrival of Google’s former finance chief.
Kristin Reinke served as vice president of Finance at Google since 2005. She leaves to join Postmates just as the company plans to launch an IPO. The board of directors at Postmates appears interested in bringing a skilled and esteemed financial executive onboard to ensure before offering stock for sale. Now, Reinke is part of that same board. Her experience could prove valuable.
Technology stocks can be volatile. Both Facebook and Uber experienced rocky IPOs. At present, it is too early to make any determinations about either company’s long-term stock outlook.
The “on-demand delivery sector” comes off as a very atypical stock. Many investors may fear the volatile nature of tech stocks combined with the limited profit potential inherent with delivery apps makes a Postmate buy too risky. And then others might believe the stock could jump in price in the future. At that time, they could sell off their shares. Possibilities exist that Postmates could become like Apple and become involved in other ventures. Likely, that is the board of directors’ eventual plan. Incidentally, Postmates recently lured Apple’s Ken Kocienda to the fold. Perhaps more high-profile hirings will occur over the course of the next few months.
Bringing in the right talent on all levels increases the chance for a company’s success. Postmates realizes this as evidenced its assembling of established executive talent. Whether the hiring decisions translate into a successful IPO remains to be seen.
Dil Bole Oberoi
