DoorDash Finally Releases its Filing to Go Public Despite a Net Loss of $149M

Leading food delivery company DoorDash has filed recently its IPO prospectus with the Securities and Exchange Commission.

The company will list its shares on the New York Stock Exchange under the symbol DASH.

DoorDash will offer three classes of stock with different voting shares. Class A common stock will grant owners one vote per share while Class B shares will come with 20 votes per share and Class C shares will have no voting rights.

In its last private valuation the company was worth $16 billion and had raised $2.5 billion.

For the nine months ended September 30th, DoorDash reported $1.9 billion in revenue and a net loss of $149 million.

Revenue is up from $587 million during the same period last year. In 2019, DoorDash had a net loss of $533 million over the nine-month period.

The company reported that as of September 30th it had over 5 million customers on its DashPass service which costs $9.99 a month. DoorDash also said it has 1 million Dashers (delivery workers) and more than 18 million customers.

According to the company’s prospectus, Chief Executive and founder, Tony Xu and his two co-founders, Andy Fang and Stanley Tang, are expected to enter a voting agreement that would give Xu the authority “to direct the vote and vote the shares” of Class B stock held by his co-founders.

“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.

Other competitors in the public market are GrubHub and Uber. DoorDash has the lead in U.S. market share among them, with 49% of meal delivery sales in September compared with Uber’s 22% and GrubHub’s 20%, says data from analytics firm Second Measure.