DoorDash IPO – Is it a Buy?

DoorDash IPO
DoorDash IPO. Source: DoorDash

DoorDash will be trying to raise $2.8 billion during IPO seeking the total company valuation of 32 billion USD.

DoorDash Inc. is an American on-demand prepared food delivery service founded by Stanford students Tony Xu, Stanley Tang, Andy Fang, and Evan Moore back in 2013. Recently company representatives have filed for Initial Public Offering.

DoorDash will be a huge IPO, however before investing you should go through the IPO prospectus first. You can find the whole prospectus by clicking on this link.

However, if you don`t have time to go through full prospectus here are so of the key points:

DoorDash market share growth

DoorDash huge growth. In not even 3 years DoorDash managed to grow from having 17% of the market up to grab 50% of the market share, which is larger than the 3 largest competitors (Uber Eats, GrubHub and Postmates) combined.

Here is what they write regarding their revenues: “In 2019 and during the nine months ended September 30, 2020, we generated revenue of $885 million and $1.9 billion, respectively.” This shows an amazing year-to-year revenue growth as well.

Food Delivery Services have benefited from pandemic and lockdown, and it seems like DoorDash wants to cash on this growth trend, seeking $32 billion in IPO, double what it was in June.

DoorDash plans to shares at a price between $75 and $85 under the Ticker: DASH

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