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DoorDash IPO filing shows growth surge in pandemic

·2-min read
DoorDash has more than tripled its revenue in 2020 as pandemic-hit consumers increasingly turn to on-demand services for meal delivery
DoorDash has more than tripled its revenue in 2020 as pandemic-hit consumers increasingly turn to on-demand services for meal delivery

DoorDash is on track to take in some $2 billion in revenue this year on growing demand during the pandemic, the food delivery startup said in its public share offering filing Friday.

The California-based startup reported losses totaling $149 million in the first nine months of 2020 on revenues of $1.9 billion as sales more than tripled from the prior year.

DoorDash was able to generate a profit in the second quarter of $23 million before slipping back to a loss of $43 million in the July-September period as it invested for growth.

"We have a history of net losses, we anticipate increasing expenses in the future," the company said in its filing.

"We have expended and expect to continue to expend substantial financial and other resources on developing our platform... expanding into new markets and geographies, and increasing our sales and marketing efforts."

The initial public offering (IPO) comes amid rapid growth of on-demand delivery services during the pandemic, especially for meals.

"The Covid-19 pandemic has made our mission more important than ever, and we are striving to help communities meet their challenges and become stronger," DoorDash said in the filing.

The filing also comes after California voters approved a referendum clearing the path for firms such as DoorDash and Uber to keep using contractor-drivers, a key part of their business model.

The filing said the company's drivers known as "Dashers" in California will get certain benefits including guaranteed base pay and health care subsidies as a result of the passage of Proposition 22.

DoorDash said surveys showed it had a 50 percent share of the US meal delivery market in October, twice as big as the number two service, Uber Eats.

DoorDash founder and chief executive Tony Xu said in the filing that the startup fulfills the American dream for his family, which came to the US from China when he was five years old.

"DoorDash exists today to empower those like my Mom who came here with a dream to make it on their own," he wrote

rl/dw