DoorDash files paperwork for initial public offering
DoorDash Inc., a food delivery company, filed paperwork with the Securities and Exchange Committee to begin the process of a public stock listing.
The company said it had filed “confidentially,” meaning its financials won’t be available publicly yet. The number of shares to be offered and the price range have not yet been determined, according to a statement from the company Thursday. The initial public offering is expected to take place after the SEC completes its review process and is subject to “market and other conditions.”
The startup had been weighing a direct listing, instead of an IPO, a route that would allow it to go public without the scrutiny that comes with an investor roadshow, but also wouldn’t raise money by issuing new shares.
The IPO process has been particularly unforgiving recently to deeply unprofitable companies like Lyft Inc. and Uber Technologies Inc. WeWork was forced to abandon its IPO last year and take a bailout from its largest investor, SoftBank Group Corp., when Wall Street rejected the company’s pitch on the roadshow.
DoorDash has raised about $2 billion from investors, including SoftBank and venture capital firm Sequoia Capital, most recently at a valuation of almost $13 billion. It uses gig-economy labor and faces similar risks as Lyft and Uber. DoorDash was embroiled in a controversy over drivers’ tips last year, which it addressed partially by increasing pay to workers. However, the issue lingers. The attorney general in Washington sued DoorDash, alleging the company pocketed customers’ tips to reduce labor costs.
– With assistance from Candy Cheng.