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Summary
- DoorDash has launched the roadshow for its initial public offering (IPO).
- Stocks of the unicorn are expected to be listed on the New York Stock Exchange (NYSE) under the ticker of ‘DASH’.
- The food delivery company had confidentially applied for a public listing in February this year.
- DoorDash Inc was founded by Stanford students Tony Xu, Evan Moore, Stanley Tang and Andy Fang in July 2013.
- In the SEC financial report that it filed earlier in November, DoorDash said that its customer base exceeds 18 million.
Food delivery app DoorDash Inc grabbed the headlines on Monday, November 30, after it launched the roadshow for its initial public offering (IPO). The unicorn is offering 33 million shares at the IPO at an estimated offering price of about US$ 75 to US$ 85 per share.
DoorDash stocks are expected to be listed on the New York Stock Exchange (NYSE) under the ticker of ‘DASH’.
The California-based company filed for its IPO with the US Securities and Exchange Commission on November 13, listing a preliminary offering of US$ 100 million.
What is DoorDash Inc?
Founded by Stanford students Tony Xu, Evan Moore, Stanley Tang and Andy Fang in July 2013, DoorDash Inc provides doorstep food delivery service. It markets itself as an on-demand platform where customers can find meals offered by local restaurants in their city.
In February 2020, DoorDash had confidentially applied for a public listing. The company then raised a valuation of about US$ 16 billion in June 2020.
DoorDash is mostly famous in the major US cities of New York, Los Angeles, San Francisco, etc. But it is also available in Canada and Australia.
It is reportedly the largest on-demand food delivery app in the US and is supported by major venture capital companies like Sequoia Capital, Khosla Ventures, Charles River Ventures, etc.
DoorDash Inc Financials
DoorDash Inc profited majorly from the pandemic-induced lockdown as that boosted the demand for online food orders. The company posted a total revenue of US$ 1.9 billion in the nine months ending 30 September 2020, a significant improvement from US$ 587 million in the same period last year.
DoorDash’s gross profit amounted to US$ 944 million in the first nine months of 2020, up from that of US$ 219 million in the first nine months of 2019. Its gross margin stood at 49 per cent for the nine months ending September 2020.
The company also reported a net loss of US$ 149 million in the September 2020-ending nine-month period, but it was lowered as against the net loss of US$ 533 million in the same period in 2019.
In the SEC financial report that it filed earlier in November, DoorDash said that its customer base exceeds 18 million, while it has over 390,000 merchants as of September 2020. The report added it has more than a million delivery agents working for the company.
DoorDash published its first-ever economic impact report back in October, which posted that the company collected about US$ 13.2 billion in revenue from restaurants and deliveries in 2019.
DoorDash’s Future Plans
DoorDash Inc said that it has plans of working with self-driving vehicles and drone delivery technologies in the future. The company partnered with GM’s Cruise Automation last year for a test run of delivering food using driverless cars in San Francisco.
