- DoorDash released its filing to go public on Friday morning.
- The delivery company said in the filing that, in the first nine months of 2020, it generated a $149 million loss on revenue of $1.9 billion, compared to a $667 million loss on $587 million in revenue the year before.
- “Helping brick-and-mortar businesses compete, succeed, and flourish in these rapidly changing times is the core problem we are trying to solve,” CEO Tony Xu wrote in a letter.
- Visit Business Insider’s homepage for more stories.
DoorDash is going public.
The San Francisco-based delivery company filed a form S-1 for IPO with the Securities and Exchange Commission on Friday. DoorDash will trade under the symbol “DASH.”
DoorDash said in the filing that it saw an explosion of business in 2020 with shrinking losses amid the pandemic. In the first nine months of 2020, it generated a $149 million loss on revenue of $1.9 billion, compared to a $667 million loss on $587 million in revenue the year before. In the third quarter of 2020, it saw 236 million total orders, compared to 70 million the year before.
The start of the pandemic and subsequent surge in food-delivery orders led DoorDash to post a surprise $23 million profit in the second quarter of 2020. Still, the company expects costs to increase and “may not be able to maintain or increase profitability in the future,” it said.
The company connects “over 390,000 merchants, over 18 million consumers, and over 1 million Dashers,” according to its prospectus summary. DoorDash is the largest player in the delivery market, with 50% of the US category based on total sales as of October, according to Edison Trends.
The IPO follows DoorDash raising $400 million in equity capital in June, scoring a valuation of $16 billion.
The recent passage of Proposition 22 puts DoorDash in an optimal position. The company lobbied to support the ballot measure, which keeps rideshare and food-delivery drivers classified as “independent contractors,” meaning they do not qualify for benefits such as minimum wage, healthcare, or paid time off.
Cofounder and CEO Tony Xu portrayed DoorDash as a crucial partner for small businesses and independent restaurants in the COVID era in a letter on Friday.
“Helping brick-and-mortar businesses compete, succeed, and flourish in these rapidly changing times is the core problem we are trying to solve,” Xu wrote.
Goldman Sachs and JP Morgan are leading DoorDash’s IPO, along with Barclays, Deutsche Bank Securities, RBC Capital Markets, and UBS Investment Bank, with Mizuho Securities, JMP Securities, Needham & Company, Oppenheimer & Co. Inc., Piper Sandler, and William Blair acting as co-managers.
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