DoorDash, the US largest food delivery company shares began trading on Wednesday on the New York Stock Exchange (NYSE) under the ticker DASH. The opening price was $ 182, about 80% higher than the public price of $ 102, and ended the session at $ 189.51. The company with a market value of $ 15 billion at the beginning of the year, reached $ 72 billion after the public offering.
"If we can make ice delivery possible before 'it melts, or pizza before it cools, or groceries in an hour, we can make it happen on-demand delivery of anything in a city, " – DoorDash CEO, Tony Xu said.
DoorDash is a privately held company founded in 2013 and based in San Francisco, California. The delivery firm reported a profit of $23 million in the second quarter this year but followed that with a $43 million loss in the third quarter. While the company revenue for the third quarter ended September reached US$879 million, up from US$239 million in a similar period last year. The company serves more than 18 million consumers and 390,000 merchants and fields over 1 million delivery personnel, known as Dashers.
“The funding from the IPO will let DoorDash expand into areas like delivery from groceries and convenience stores” – DoorDash, COO Christopher Payne said.
The food delivery industry benefited largely from the COVID-19 pandemic. The pandemic has boosted sales of food delivery companies, with restaurants shuttered, more people staying home and ordering takeout food. DoorDash provides on-demand delivery and logistics services to local and national businesses in more than 4,000 cities and all 50 states across the United States, Canada, and Australia. On the other hand, the delivery firm recently said it reduced commissions for the smallest restaurants during the pandemic, but the fees will likely remain an issue.