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DoorDash is now available to purchase on the New York Stock Exchange. Here’s how you can buy in.
Wednesday, December 9: DoorDash starts trading at $182 per share and closes at $187, 83% above the offering price.
Tuesday, December 8: DoorDash prices its IPO at $102 per share.
Friday, December 4: DoorDash updates its S-1 filing to propose a new projected share price of $90 to $95.
Thursday, December 3: DoorDash is expected to close its initial public offering on December 8 and trade on the New York Stock Exchange on December 9.
Monday, November 30: DoorDash updates its filing to state a projected share price of $75 to $85.
Friday, November 13: DoorDash releases its IPO filing and announces plans to launch on the New York Stock Exchange under the ticker symbol DASH.
Before you can invest in DoorDash, you'll need to open a brokerage account.
DoorDash privately submitted an IPO proposal to the US Securities and Exchange Commission (SEC) in February but delayed its listing in response to the global pandemic.
On November 13, DoorDash made its IPO regulatory filing public. Its filing outlined its plans to go live on the New York Stock Exchange under the ticker symbol DASH.
DoorDash announced it will offer 33 million shares in the IPO: three classes of stock with different voting shares. Its Class A stock will grant one vote per share, Class B stock will receive 20 votes per share and Class C stock will not carry voting rights.
The projected price per share sat at $90 to $95 prior to its market debut.
DoorDash launched to the public on Wednesday, December 9.
After it privately raised $400 million in June, investors valued DoorDash at $16 billion. But despite a 110% increase in sales between January and May, Bloomberg reported that DoorDash remained unprofitable. To be fair, Grubhub and Uber Eats — two of DoorDash’s largest competitors — were also unprofitable in the second quarter.
With the release of DoorDash’s public listing, we got a better look at its financials. In 2019, DoorDash reported $885 million in revenue. For the nine months ended September 30, 2020, its revenue rose to $1.9 billion — a respectable uptick. In addition to revenue gains, the company also appears to be narrowing its losses, reporting a net loss of $667 million in 2019 followed by a net loss of $149 million in the nine months ended September 30, 2020.
Revenue gains and diminishing losses are a promising pattern and may present a lucrative investment opportunity — if DoorDash can maintain its momentum.
Check out our short video in which we break down what we know so far about DoorDash’s upcoming IPO and how you can buy shares.
Amid the stay-at-home orders that blanketed much of North America during the early months of the pandemic, food delivery sales skyrocketed. According to a report from Second Measure, meal delivery services are up 150%. And as of October 2020, DoorDash dominates the market with a 50% slice of available sales, edging out Uber Eats, Grubhub and Postmates, among others. Just two years prior, DoorDash held 17% of the market, marking impressive growth for this gig economy delivery service.
But there are risks to investing in DoorDash — and the industry as a whole.
For a start, DoorDash isn’t turning a steady profit. And like other companies in the industry, it seems to prize growth over profits. Another concern is the frequency with which companies in the sharing economy merge. Just last year, DoorDash acquired Caviar for $410 million. DoorDash has also discussed a potential merger with Uber. With the high degree of competition that punctuates the industry, some companies must merge to stay viable.
DoorDash is a food delivery platform that serves over 4,000 cities in the US and Canada. It was founded in 2013 and is headquartered in San Fransisco.
The DoorDash database stands over 300,000 restaurants strong and orders can be made, tracked and paid for through the platform’s mobile app. Like other gig economy companies, DoorDash relies on independent contractors it calls “Dashers” to pick up and deliver customer orders.
DoorDash is not an accredited business with the Better Business Bureau (BBB) and receives an F rating for accumulating 2,617 customer complaints and failing to respond to 1,878 of them. Many complaints cite order errors, delays and unpleasant interactions with the DoorDash customer service team.
There are only a couple of publicly-traded food delivery companies on the market to compare, but here’s how a few of DoorDash’s gig economy competitors are performing:
Grubhub (GRUB) is an online food ordering and delivery platform headquartered in Chicago. It launched its stock on the NYSE in 2014 trading at $34. The stock performed moderately well until early 2017, when it began to climb. It hit an all-time high of $146.11 in September 2018 before falling back to $87.95 just one month later. It closed out the trading day yesterday at $69.25.
Lyft (LYFT) is a ridesharing company headquartered in San Francisco. Its stock went live on the NASDAQ in March 2019 trading at $78.29. To be blunt, Lyft’s stock performance has been disappointing. It tumbled downhill from its launch before hitting an all-time low of $21.27 in March 2020. It closed out the trading day yesterday at $48.11.
Uber (UBER), while well known for its ridesharing service, is also responsible for Uber Eats — a food delivery program that operates as one of DoorDash’s primary competitors. Uber’s stock launched on the NYSE in May 2019 at $41.57. The stock has had a tumultuous year, peaking at $46.38 one month after its launch and falling to an all-time low of $21.33 in March 2020. The stock has recovered somewhat but still trades below its initial value. It closed out the trading day yesterday at $54.35.
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