DoorDash Hits the NYSE

  • DoorDash has always been called the Uber of food delivery.
  • Dashers have earned more than $7 billion through the DoorDash platform.
  • Since its establishment, more than 900 million orders have been completed on the DoorDash platform.

Global food delivery distribution platform DoorDash has begun to promote IPO plans. It is learned that the US version of the biggest takeaway delivery platform, DoorDash, is expected in mid-December to “DASH” to the ticker symbol landing at the New York Stock Exchange.

DoorDash Inc. is an American on-demand prepared food delivery service founded by Stanford students Tony Xu, Stanley Tang, Andy Fang and Evan Moore. DoorDash is one of several technology companies that uses logistics services to offer food delivery from restaurants on-demand.

In the first half of the year, the world suffered a fierce epidemic, and many people believe that the catering industry will usher in a huge wave of bankruptcies.

However, with the global digital transformation, mobile Internet technology has broadened the application scenarios of the catering industry, and the epidemic has become a catalyst.

Many catering industries have quickly poured into the takeaway platform, which has brought increased sales to merchants and survived this long, cold winter.

As the share of the food delivery industry in global purchase channels continues to increase, the industry’s mapping in the capital market is also a beautiful scene.

For example, Meituan (03699.HK), which started as a takeaway delivery service, went public in Hong Kong in 2018. In just two years, its stock price has risen three times, with a cumulative increase of more than 200% this year.

Some investment banks believe that in the next 3 to 5 years, the compound annual growth rate of domestic food and beverage delivery revenue will reach 25%.

DoorDash is supported by all kinds of bigwigs. As one of the incubation projects of Silicon Valley’s elite Class, the entrepreneurial incubator YC has made its first investment of $120,000 so far. At the same time, DoorDash has completed more than $2.5 billion in A to H rounds of financing. After completing the H round of financing in June this year, the valuation is $16 billion.

The prospectus learned that the cash, cash equivalents, and securities held by DoorDash were $16.11. billion, the capital reserves are still relatively abundant. According to a Wall Street Journal report, DoorDash’s IPO valuation may reach $25 billion.

In the past few years, the US food delivery platform has developed rapidly. Companies like DoorDash have tens of thousands, but after just 6 years, DoorDash has entered the leading position of the industry from a small platform, successfully defeating the “originator of food delivery,” Grubhub. With a market share of 38%, it has become the most popular food delivery company in the United States.

Dozens of first-tier investment banks, such as Goldman Sachs, Morgan Stanley, Barclays, Deutsche Bank, Royal Bank of Canada Capital Markets, and UBS Investment Bank have participated in DoorDash’s IPO. In the face of DoorDash, which is betting on more than a dozen top-tier investment banks, perhaps investors can understand the true face of DoorDash from the prospectus.

The New York Stock Exchange is an American stock exchange at 11 Wall Street in the Financial District of Lower Manhattan in New York City. It is by far the world’s largest stock exchange by market capitalization of its listed companies at US$30.1 trillion as of February 2018.

DoorDash has always been called the Uber of food delivery (not to be confused with Uber Eats). This is mainly because DoorDash does not have its own distribution team, but uses a crowd-sourcing approach to deliver orders to users.

As long as you have simple delivery tools, such as cars and smartphones, you can easily become a driver, and you can get at least $6 for food delivery per order. You may even get unexpected tip income.

This is the “Become a Driver” feature in the DoorDash app. The crowdsourcing delivery model has largely expanded its takeaway delivery team in a short period of time, with approximately one million takeaway workers. Dashers have earned more than $7 billion through the DoorDash platform.

From the prospectus, investors can learn that its business model is almost exactly the same as the early delivery mechanism in China. Consumers place orders online, and merchants make meals, which are delivered by the nearest driver through an algorithm, forming a stable ecosystem.

Since its establishment, more than 900 million orders have been completed on the DoorDash platform. The company has 390,000 merchants on its local platforms in the United States, Canada, and Australia, and covers all 50 states in the United States, with a total of 18 million Dashers. DoorDash has formed a cooperation with more than 175 of the 200 largest national brands in the United States.

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Doris Mkwaya

I am a journalist, with more than 12 years of experience as a reporter, author, editor, and journalism lecturer." I've worked as a reporter, editor and journalism lecturer, and am very enthusiastic about bringing what I've learned to this site.  

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