Shares of DoorDash started trading at $182 a share on Wednesday (Dec. 9) in its New York Stock Exchange introduction, providing the food delivery company with a $57.8 billion market cap.
DoorDash, which trades with the “DASH” ticker symbol, had priced its stock at $102 per share on Tuesday night, CNBC reported.
The food delivery firm reported $1.9 billion in revenue for the nine months up to the end of September, CNBC reported, citing the firm’s initial public offering (IPO) filing. The figure was greater than $587 million in the same timeframe in 2019.
With consumers restricting their time beyond their residences as much as they can, food delivery has been a green shoot amid COVID-19.
DoorDash said over 390,000 establishments harness the app, CNBC reported, citing the company’s prospectus.
The company’s IPO begins a busy time for firms to go public, with Airbnb scheduled to make its market introduction on Thursday (Dec. 10).
The news comes as Karl Racine, attorney general of the District of Columbia, has written a letter ordering DoorDash to stop charging dining establishments a 30 percent commission on each order via the delivery company’s DashPass subscription service.
The letter that was reportedly sent to the deliver firm said a commission would go against the district’s code that puts a 15 percent limit on commissions for third-party delivery firms.
“While DashPass is a premium marketing offering and provides benefits to many restaurants, we have decided to not charge DC restaurants their contractual DashPass rate at this time. We look forward to engaging with local policymakers to increase understanding of the impact pricing regulations have, and solutions that better serve customers, Dashers, and restaurants,” a representative for the food delivery company said in a statement, per Reuters.
Commission rates of 30 percent may fall by the wayside where states and cities have been capping what DoorDash can charge on restaurants.
