Home rental giant Airbnb, ecommerce discount specialist Wish, installment loan provider Affirm and online gaming company Roblox are all reportedly planning to hold their offerings before the end of 2020.
DoorDash made its filing public, revealing robust revenue growth and a profitable second quarter driven largely by demand during the coronavirus pandemic.
The San Francisco-based company posted $1.9 billion in revenue through Q3 2020, more than tripling the $587 million of revenue it generated during the same period last year. Its net loss for the period narrowed to $149 million from $534 million a year ago.
In Q2, DoorDash recorded a $23 million profit, posting $675 million in revenue. Its revenue continued to grow this year with $879 million in Q3, though it recorded a net loss of $43 million in the period.
“The company’s commanding share of sales helped it report profitability for the first time in Q2 2020,” said Alex Frederick, an emerging tech analyst at PitchBook. “We expect the company to continue to capitalize on the pandemic-fueled acceleration of food delivery trends and achieve stable profitability in the near term.”
In Q3, DoorDash fulfilled 236 million total orders, a 237% increase compared to the same period last year. Orders have more than doubled since Q1 of this year, when it completed 103 million orders. The company attributes much of that boost to a shift away from indoor dining amid lockdown measures across the US.
DoorDash acknowledged that as circumstances surrounding the pandemic evolve, the growth rate of its orders will likely decline in the future. It expects the total number of orders, however, to grow as consumers increase their adoption of meal delivery.
The filing comes less than six months after DoorDash raised $400 million at a $16 billion valuation in June, ballooning to that value over the two-plus years since it was worth $1.4 billion in 2018, according to PitchBook data. The company is backed by investors including SoftBank‘s Vision Fund (24.9% pre-IPO stake) and Sequoia (20.4%).
DoorDash caters to more than 18 million customers and employs over 1 million delivery workers across Canada, Australia and the US. The company commanded 49% of the US meal delivery market in September, according to consumer analytics provider Second Measure, with publicly-traded competitors Uber Eats and GrubHub trailing at 22% and 20% of the market, respectively.
“This is a favorable time for food delivery companies to go public given the surge in demand as well as the passing of Proposition 22,” said Asad Hussain, an emerging tech analyst at PitchBook.
Earlier this month, California voters sided with Proposition 22, making gig economy companies like Uber, Lyft, DoorDash and Instacart exempt from a state law requiring companies to treat their contractors as employees. DoorDash reportedly contributed nearly $48 million to the ballot measure’s Yes campaign.
Despite emerging victorious on that ballot measure, the company acknowledged that it will likely result in higher operational costs for its contractors in California.
DoorDash will offer three classes of common stock with different voting shares, a practice becoming more commonplace among Silicon Valley upstarts. Each Class A common share will grant owners one vote, while the company’s Class B shares come with 20 votes per share.
DoorDash co-founder and CEO Tony Xu holds 41.6% of the Class B shares, and will wield much of the voting control of the remaining shares in this group, split between the company’s other co-founders, Stanley Tang and Andy Fang.
James Thorne contributed to this report.
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