There have been a number of high-profile public listings this fall: Asana, Palantir, Snowflake, Unity Software.
Delivery app DoorDash is joining the fray and there’s probably a 100% chance you’ve used this service more than all those other companies combined.
In honor of the 5x we ordered The Cheesecake Factory from DoorDash over the weekend, here are 5 things you need to know about the upcoming IPO (via Protocol):
Through the first 9 months of 2020, DoorDash’s 18m customers have spent $16B which translates to revenue of $1.9B, up 226% YoY.
Because of heavy sales and marketing expenses, DoorDash lost $149m on the $1.9B of revenue… this is an improvement over the $534m it lost through the same period in 2019. (It even made a 3% profit in Q2 2020… a first).
DoorDash wants to “grow and empower local economies” by providing a suite of services: marketing and analytics tools, and delivery subscription services.
Critics may balk at this vision, particularly after DoorDash joined Uber and Lyft to help pass Prop 22, which keeps gig workers on contractor status.
Its S1 filing has more than 50 pages covering risk factors; some of the most notable:
Out of the WeWork wreckage, Japanese billionaire Masayoshi Son has made a comeback in 2020. At its present valuation of $16B, DoorDash would be a ~5x return for Son ($680m investment → $3.5B stake).
The co-founders’ combined stake — Stanford classmates Tony Xu (CEO), Andy Fang (CTO), and Stanley Tang (CPO) — is worth $2.3B. 🤯