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As DoorDash gears towards its IPO, the food delivery app is set to join its competitors that are already publicly traded.
The US leading food delivery app DoorDash is hoping to be valued at $32 billion after securing about $2.8 billion in an upcoming initial public offering (IPO). The company plans to list its shares on the New York Stock Exchange (NYSE) with the ticker “DASH.”
DoorDash Seeks $32 Billion Valuation in IPO
According to a filing on the 30th of November, DoorDash plans to offer a total of 33 million shares. As stated in the filing, the company plans to sell each share between the prices of $75 and $85. Upon a successful IPO, the company seeks to be valued at $32 billion on a fully diluted basis.
On the 13th of November, DoorDash filed for an IPO with the US Securities and Exchange Commission (SEC). Before then, DoorDash’s previous private valuation was $16 billion as of June this year.
Per the most recent filing, DoorDash shares would be available in three stock classes with different voting rights. Holders of Class A common stock will have the right to one vote per share. Class B common stockholders will have rights to 20 voters per share. In addition, holders of Class C shares will have no access to voting rights.
Apart from DoorDash, more companies are also looking to go public by the end of 2020. According to a report by The New York Times, Airbnb is seeking a valuation of about $35 billion in IPO before the end of the year. Other companies that are planning to go public before the end of December include Roblox and Wish.
DoorDash Records Increase in Revenue and Net Loss
During its nine months ended on the 30th of September, DoorDash reported an increase in revenue to $1.9 billion. In the previous year, DoorDash recorded $587 million in revenue during the same period.
Despite an increase in revenue, DoorDash also had a lower net loss of $149 million during the nine months. In 2019, DoorDash reported a $533 million loss in the same period.
As DoorDash gears towards its IPO, the food delivery app is set to join its competitors that are already publicly traded. DoorDash’s competitors include GrubHub Inc (NYSE: GRUB) and Uber Technologies Inc (NYSE: UBER). Despite that DoorDash is not yet in the public market, the food delivery app has the largest market share in the meal delivery sector. In September, DoorDash covered 49% market share in food delivery sales. In the same period, GrubHub had 20%, and Uber had 22%.
GrubHub is currently trading at $71.65. The online food ordering company has also gained 68.47% in the last twelve months.
Also, Uber Technologies has climbed 70.78% over the past year. UBER is currently trading at $49.59.
In the filing, DoorDash noted:
“Today we connect over 390,000 merchants, over 18 million consumers, and over 1 million Dashers in the United States, Canada and Australia through our local logistics platform.”
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