- The stock price of DoorDash Inc (NYSE: DASH) increased by 85% in its market debut. These are the details.
The stock price of food delivery app company DoorDash Inc (NYSE: DASH) increased by 85% in its market debut. And now the company is valued at over $71 billion.
DoorDash had priced its shares at $102 on Tuesday night, up from a previous range of $90 to $95. And the stock price started trading at $182 per share upon debuting.
DoorDash — which launched in 2013 — competes against GrubHub and Uber. And DoorDash saw a surge in use this year due to the shelter-in-place orders associated with the coronavirus pandemic.
For the 9 months ended September 30, DoorDash had reported $1.9 billion in revenue, up from $587 million during the same period a year ago. And the company’s net loss was narrowed to $149 million during the same period in 2020 as it saw $533 million during the same period a year ago.
DoorDash was founded by Tony Xu, Andy Fang, and Stanley Tang while at Stanford University. They came up with the idea while dining at a macaroon store in Palo Alto. The shop owner showed them pages of orders that could not be fulfilled. And the demand was not high enough to hire a delivery person full-time.
The trio of entrepreneurs started out by building a basic website with menus from local restaurants to see if there was demand for a delivery service. At first they did not expect much to happen as it was just an experiment. But one day they got a phone call from someone who wanted to order Thai food. Fast forward several years and now the three of them are billionaires and DoorDash currently has over 390,000 merchants on its platform.
Each of the three founders have stakes worth between $2.5 billion to $2.8 billion, according to the Bloomberg Billionaires Index. Xu has the voting authority over all Class B shares with 69% of the voting power.
Goldman Sachs and JPMorgan served as the lead underwriters for the IPO. And some of the largest shareholders of the company include SoftBank (20% stake) and Sequoia Capital (16% stake).