DoorDash Takes Step Toward IPO

    The company was valued at $13 billion in 2019.
    Ordering | February 2020 | Ben Coley


    DoorDash’s market share grew from 19 percent in 2018 to 33 percent last year.

    DoorDash announced Thursday that it is moving toward going public.

    The company confidentially submitted a draft registration statement on Form S-1 with the SEC. The number of shares to be offered and the price range for the proposed offering haven’t been determined. The IPO is expected to happen after the SEC completes its review.

    The news comes after the Financial Times reported in January that Uber and DoorDash were discussing a merger at the request of SoftBank, who invests in both companies.

    Postmates, valued around $2 billion last year, filed paperwork to go public in February 2019, but the IPO has yet to become a reality because of market conditions. 

    DoorDash is reportedly using Goldman Sachs as an underwriter. The San Francisco-based company, founded in 2013, was valued at $13 billion near the end of last year—that’s compared to just $1.4 billion in 2018.

    The company passed Grubhub in 2019 as the leader in the third-party delivery market. DoorDash’s market share grew from 19 percent in 2018 to 33 percent last year, while Grubhub dropped from 43 percent to 32 percent. Those two are followed by Uber Eats and Postmates, which make up about 30 percent combined. Morgan Stanley reported that the market is expected to reach $467 billion in the next five years.

    The company still faces uncertainty, especially as the coronavirus continues to affect the industry. Domestically, DoorDash and other third-party delivers face challenges in California where a bill could reclassify workers as employees instead of contractors.