At a time when the services of the firm are in high demand because of the pandemic raging through most of the world, the on-demand food delivery company DoorDash is getting ready to get itself publicly listed.
While claiming that it has generated $1.9 billion in revenue in the first nine months of this year ending September, its plans for initial public offering paperwork was made public on Friday by the 7-year-old company. During this period, a loss of $149 million was incurred by it compared to a loss of $533 million for the same period a year ago.
However a profit of $23 million was notched up by the company during the second quarter of this year, amid the pandemic.
“The pandemic has demonstrated how vital we are to the communities in which we operate,” DoorDash said in the paperwork.
“With the pandemic, our platform has become a lifeline for merchants whose only revenue options are take-out and delivery, for consumers sheltering in place, particularly vulnerable populations whose health depends on isolating, and for many of the millions of newly unemployed in need of earnings opportunities.”
The company has chosen the New York Stock Exchange for its listing with the symbol DASH, DoorDash said.
With a latest valuation of $16 billion, the company has raised $2.5 billion to date from investment rounds since it was founded in 2013 by a group of Stanford students as a solution for local businesses troubled with their delivery needs.
In terms of sales, DoorDash is the leader in the food delivery market in the United States. The company has managed ot make a mark in the crowded market for food delivery, the company had acquired premium restaurant delivery service Caviar in August 2019.
According to analytics firm Second Measure, the sale revenue of the company surpassed that of Grubhub for the first time in May 2019 and has managed to retain that spot since.
Despite this, less than 6 per cent of the overall US population was represented by the US consumers on its platform as of September this year, DoorDash has said.
“We believe we are in the early phases of broad market adoption,” the company said.
There are number of major competitors of the company in the food delivery business. It includes Uber, which operates Uber Eats as well as the newly acquired Postmates. Other competitors include Grubhub which was taken over by Netherlands-based company, Just Eat Takeaway.com and which has recently announced a partnership with Lyft.
At the core of the competition in this space is lowering of prices for whining consumer s- a business tactic that has a direct impact on the financial performance of companies in this segment.
According to DoorDash, its mission is much more than being recognised as a company that delivers food from restaurants. The company has set targets of development of products that can help to transform how local merchants sell things other than food do business which includes operating through an on-demand logistics platform that can “make possible the delivery of ice cream before it melts, or pizza before it gets cold, or groceries in an hour”. It also includes merchant services to help businesses with things such as customer acquisition and delivery.
(Adapted from CNN.com)