[ad_1]
- DoorDash on Friday released its filing to make it public.
- The delivery company said in the statement that in the first nine months of this year it generated a loss of $ 149 million on revenues of $ 1.9 billion, compared to a loss of $ 667 million on $ 587 million. of revenue from the previous year.
- “Helping brick and mortar companies compete, succeed and thrive in these rapidly changing times is the main problem we are trying to solve,” CEO Tony Xu wrote in a letter.
- Visit the Business Insider home page for more stories.
DoorDash is going public.
The San Francisco-based delivery company on Friday filed an S-1 form for an initial public offering with the Securities and Exchange Commission. DoorDash will be exchanged for the DASH symbol.
DoorDash said it saw an explosion in business in 2020 and a reduction in losses during the pandemic. In the first nine months of this year, it generated a $ 149 million loss on revenues of $ 1.9 billion, compared with a loss of $ 667 million on $ 587 million in revenue a year earlier.
In the third quarter of this year, it recorded 236 million total orders, up from 70 million the previous year.
The surge in food delivery orders led DoorDash to record a surprise profit of $ 23 million in the second quarter of 2020. However, the company said it expects costs to rise and it “may not be able to maintain. or increase profitability in the future. “
The company’s prospectus summary states that it connects “over 390,000 merchants, over 18 million consumers, and over 1 million Dasher”. According to Edison Trends, DoorDash is the largest player in the delivery market, with 50% of the US category based on total sales in October.
DoorDash raised $ 400 million of equity in June, marking a valuation of $ 16 billion.
The recent passage of Proposition 22 in California puts DoorDash in a prime position. The company has lobbied to support the voting measure, which keeps taxi and food delivery drivers classified as “independent contractors,” meaning they are not eligible for benefits such as minimum wage, health care or paid leave.
Read more: California voters passed Proposition 22, keeping travel-sharing and food delivery drivers as contractors – here’s what it means for companies like Uber, Lyft, Instacart, DoorDash, and their workers
In a letter on Friday, DoorDash cofounder and CEO Tony Xu described DoorDash as a crucial partner for small businesses and independent restaurants in the COVID-19 era.
“Helping brick and mortar companies to compete, succeed and thrive in these rapidly changing times is the main problem we are trying to solve,” Xu wrote.
DoorDash’s IPO is among the most anticipated of 2020 and adds to a record year for public listings. Special-purpose acquisition companies have so far raised about $ 65 billion through 178 IPOs, according to SPACInsider.com. According to Bloomberg data, debuts by tech companies like Snowflake and Palantir added to the record $ 141 billion raised in deals this year.
This sum is set to rise in the final months of 2020. Airbnb, Wish and Roblox are still expected to be made public before the end of the year, CNBC reported Thursday. Those documents are expected to be released by the end of next week, although timing is subject to market conditions, the report said.
Goldman Sachs and JPMorgan lead 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., Piper Sandler and William Blair acting of co-managers.
Source link
