Delivery platform DoorDash filed its prospectus for an initial public offering (IPO) for a New York Stock Exchange listing on Friday (Nov. 13) after posting a strong profit, according to a CNBC report.
The Silicon Valley startup posted $1.9 billion in revenue for the end of September, up $587 million compared to the same nine month period in 2019. Net loss is also down over last year, $149 million in 2020 versus $533 million in 2019 for the nine-month period through Sept. 30. The company has raised $2.5 billion and was last valued at $16 billion.
DoorDash will offer three classes of stock, which is not unusual for a San Francisco tech company with CEO founders. Founded by Tony Xu, Andy Fang and Stanley Tang in 2013, the company said it has over 1 million workers servicing more than 18 million customers.
According to the prospectus, the three co-founders are anticipated to enter a voting agreement that authorizes Xu “to direct the vote and vote the shares” of co-founders’ Class B stock.
“As a result, Mr. Xu will be able to determine or significantly influence any action requiring the approval of our stockholders, including the election of our board of directors, the adoption of amendments to our certificate of incorporation and bylaws, and the approval of any merger, consolidation, sale of all or substantially all of our assets, or other major corporate transaction,” the filing says.
Rivals GrubHub and Uber already went public, but DoorDash tops U.S. market share. It had 49 percent of the meal delivery market in September, Uber had 22 percent, and GrubHub had 20 percent, according to Second Measure, per CNBC.
DoorDash announced plans to move forward with an IPO in August after filing confidentially in February, joining the many other tech startups rushing to file in 2020, including Airbnb, Asana, and others.
In August, DoorDash announced plans to open digital convenience stores called DashMart in select markets so it could better compete in the crowded food delivery space. In October, the tech delivery unicorn invested in its first restaurant, Burma Bites, a spinoff of the California-based eatery Burma Superstar.