Food delivery platform DoorDash is looking to raise up to $3.14 billion in its hotly anticipated initial public offering (IPO) and has increased its target price to as much as $95 a share, according to a U.S. Securities and Exchange filing Friday (Dec. 4).
DoorDash shares will trade on Nasdaq under the symbol “DASH.” Lead underwriters for the IPO are Goldman Sachs and J.P. Morgan.
The popular restaurant delivery service has yet to turn a sustained profit and warned in its S-1A filing with the SEC that it might not be able to do so in the near future due to an expected increase in expenses.
San Francisco-based DoorDash is backed by SoftBank Group’s Vision Fund, Sequoia Group and Singapore’s sovereign wealth fund, the Government of Singapore Investment Group. The company was founded in 2013, according to Reuters.
A competitor to Uber Eats and Grubhub, DoorDash offers food delivery in nearly 80 cities in the U.S., Canada, and Australia, according to its website. The company has enjoyed a surge of interest since the imposition of social distancing restrictions with the ongoing global pandemic.
Door Dash noted in a separate recent filing that it’s currently capturing just a tiny piece of the total U.S. market for food delivery.
“Our [gross order volume] in 2019 represented less than 3 percent of this off-premise spend, highlighting the large addressable opportunity ahead of us in the food vertical alone,” DoorDash wrote in its S-1 filing in November. “We are also beginning to expand into other verticals beyond food and our ambition is to empower all types of local businesses.”