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.
What we know about the DoorDash IPO
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.
How to buy shares in DoorDash when it goes public
Once DoorDash goes public, you'll need a brokerage account to invest. Consider opening a brokerage account today so you're ready as soon as the stock hits the market.
Compare share trading platforms. If you're a beginner, look for a platform with low commissions, expert ratings and investment tools to track your portfolio. Narrow down top brands with our comparison table.
Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and bank information. Fund your account with a bank transfer, credit card or debit card.
Search for DoorDash. Find the stock by name or ticker symbol: DASH.US. Research its history to confirm it's a solid investment against your financial goals.
Purchase now or later. Buy immediately with a market order or use a limit order to delay your purchase until DoorDash reaches your desired price. To spread out your purchase, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
Decide on how many to buy. Weigh your budget against a diversified portfolio that can minimise risk through the market's ups and downs. You may be able to buy a fractional share of DoorDash, depending on your broker.
Check in on your investment. Congratulations, you own a part of DoorDash. Optimise your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.
To choose the best app for different categories, we evaluated the share-trading platforms on our site against a range of metrics to select platforms offering stand-out features for specific needs. Keep in mind that our best picks may not always be the best for you, and it's important to compare for yourself to find one that works for you. Read our full methodology here to find out more.
What we know about DoorDash's balance sheet
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.
DoorDash investment risks
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.
How do similar companies perform?
It's impossible to predict how any stock will perform — and IPOs can be particularly volatile. But evaluating the performance of companies like DoorDash can be useful in determining how the market is performing and whether now is a good time to invest in this industry.
Select a company to learn more about what they do and how their stock performs, including market capitalization, the price-to-earnings (P/E) ratio, price/earnings-to-growth (PEG) ratio and dividend yield. While this list includes a selection of the most well-known and popular stocks, it doesn't include every stock available.
Grubhub Inc., together with its subsidiaries, provides an online and mobile platform for restaurant pick-up and delivery orders in the United States. The company connects approximately 300,000 local restaurants with diners in various cities. It offers mobile applications and mobile Websites; and operates Websites through grubhub.com, seamless.com, and menupages.com. The company also provides corporate program that offers employees with various food and ordering options, including options for individual meals, group ordering, and catering, as well as proprietary tools that consolidate various food ordering into a single online account. In addition, it offers Grubhub for Restaurants, a responsive web application that can be accessed from computers and mobile devices, as well as Grubhub-provided tablets; GH+ subscription program to diners; delivery services to restaurants; point of sale (POS) integration, which allows restaurants to manage Grubhub orders and update their menus directly from their existing POS system; and Website and mobile application design and hosting services for restaurants, as well as technology and fulfillment services, including order transmission and customer relationship management tools. The company was formerly known as GrubHub Seamless Inc. and changed its name to Grubhub Inc. in February 2014. Grubhub Inc. was founded in 1999 and is headquartered in Chicago, Illinois.
Market capitalization: $6675264512
P/E ratio: 851.5
PEG ratio: 7.0599
Dividend yield: 0%
Lyft, Inc. operates a peer-to-peer marketplace for on-demand ridesharing in the United States and Canada. The company operates multimodal transportation networks that offer riders personalized and on-demand access to various mobility options. It provides Ridesharing Marketplace, which connects drivers with riders; Express Drive, a flexible car rentals program for drivers; Lyft Rentals that provides vehicles for long-distance trips; and a network of shared bikes and scooters in various cities to address the needs of riders for short trips. The company also integrates third-party public transit data into the Lyft app to offer riders various transportation options. In addition, it offers autonomous vehicles; concierge for organizations; Lyft Pass that allows organizations to create custom transportation programs; enterprise programs, including monthly ride credits for daily commutes, supplementing public transit by providing rides for the first and last leg of commute trips, late-night rides home, and shuttle replacement rides; and transportation solutions that can be customized for events, such as recruiting events, conferences, celebrations, meetings, and company retreats. The company was formerly known as Zimride, Inc. and changed its name to Lyft, Inc. in April 2013. Lyft, Inc. was incorporated in 2007 and is headquartered in San Francisco, California.
Uber Technologies, Inc. develops and operates proprietary technology applications in the United States, Canada, Latin America, Europe, the Middle East, Africa, and the Asia Pacific. It connects consumers with independent providers of ride services for ridesharing services and other forms of transportation services, including public transit, as well as connect riders and other consumers with restaurants, grocers, other stores, and delivery service providers for meal preparation, grocery, and other delivery services. The company operates through four segments: Mobility, Delivery, Freight, and Advanced Technologies Group (ATG) and Other Technology Programs. The Mobility segment provides products that connect consumers with mobility drivers who provide rides in a range of vehicles, such as cars, auto rickshaws, motorbikes, minibuses, or taxis. It also offers Uber for Business, financial partnerships, transit, and vehicle solutions offerings. The Delivery segment allows consumers to search for and discover local restaurants, order a meal, and either pick-up at the restaurant or have the meal delivered, as well as offers grocery and convenience store delivery, and select other goods. The Freight segment connects carriers with shippers on the company's platform and enable carriers upfront, transparent pricing, and the ability to book a shipment. The ATG and Other Technology Programs segment engages in the development and commercialization of autonomous vehicle and ridesharing technologies, as well as Uber Elevate. The company was formerly known as Ubercab, Inc. and changed its name to Uber Technologies, Inc. in February 2011. Uber Technologies, Inc. was founded in 2009 and is headquartered in San Francisco, California.
Fees for buying 5x DoorDash shares with popular platforms
Both exchange rates and share prices fluctuate in real time, so the costs presented here should be considered as a guide only. They do not incorporate stamp duty. Always refer to the platform itself for availability and pricing – which may differ from our information.
All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.
Dawn Daniels is a publisher with Finder, based out of Oregon. Her background includes editing more than 40 published books, including Financial Fitness: 21 Easy Exercises to Get Your Personal Finances in Shape Fast by Dr. Vi Scott. In her spare time, Dawn enjoys hiking ridiculous distances and collapsing in exhaustion.
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