Are you a fan of DoorDash? Do you order in regularly? If so, you might be happy to know that DoorDash filed with the SEC to go public. That means that you can eventually be a small owner in the last mile technology and delivery company. But do you want to be a very small owner in the company? It is growing like crazy but a few point out that it is also losing money at a rapid pace and continues to burn money like its nothing.
Here are a few items you want to pay attention to about DoorDash as it prepares to go public in a volatile stock market.
The DoorDash IPO
We have not a single clue about how many shares DoorDash will sell, at what price point they will distribute these shares and when the IPO will be. We’re all wondering when it will do so at it is quite possibly of utmost importance to the company. If the firm is burning through cash quickly it will need to bring in more cash to survive and thrive in the face of significant competition.
We’ve heard recently how DoorDash and Uber, two Softbank backed companies, recently held talks to merge. I guess that didn’t pan out because it is looking distributing shares to the general public at some point in the future. DoorDash is a key player in the sector.
Some experts even go as far to note that the company might be taking the lead at the current moment. Did you know that they raised more than $600 million at over a $10 billion valuation in November 2019? But I wonder if they will be able to justify that valuation in the public markets. We saw how Uber and Lyft saw significant declines post IPO. Technology companies such as Upwork, Fiverr, and other entities that went public also saw substantial repricing post IPO last year.
What’s even more interesting is that Grubhub, a long time player in the sector, is looking at strategic moves to restructure. This might mean that the firm will sell itself to another company or merge with a competitor. Nothing has materialized as of yet but it might still be in the cards for the company.
Still, it seems like DoorDash sees itself as a strong competitor over the long-term and is slowly making critical acquisitions that would allow it create a compelling narrative. For instance, DoorDash has purchased ScottyLabs, an autonomous delivery company.
The CEO of Scotty Labs notes “our core belief at Scotty has always been that Autonomy + Remote Assistance will be the future of logistics,” stated Arodiogbu in his blog post. “We have intentionally always considered ourselves to be the anti-hype company and focused intensely on developing core infrastructure and algorithms, with a healthy degree of human intelligence, to ensure the safe deployment of autonomous vehicles.”
Still, nothing is certain and filing in this manner makes it even more precarious that an offering may take place. Confidential filings show that a company is taking on the option to IPO but can choose to stay private and conduct further rounds in the private capital markets if they will allow for that.