Shares of DoorDash Inc. soared on their first trading day on Wednesday after the “concert” company completed one of the biggest initial public offerings of a busy year.
The shares were quoted at a higher price and then began trading at $ 182 on Wednesday morning, a rate of 78.2% at the $ 102 IPO. The San Francisco-based company, which began service in the suburbs of Silicon Valley in 2013 and now controls half of the application-based food delivery in the U.S., has raised at least $ 3 billion worth more than $ 32 billion.
See 5 facts about DoorDash as it goes public
DoorDash filed a confidential public offering in February, just before the coronavirus epidemic stopped everything and demand for transportation skyrocketed. Months later, it is the latest company to take advantage of the hot IPO market, having become one of the biggest beneficiaries of the lifestyle and economy that COVID-19 has changed dramatically.
Now the question is whether it can continue to grow and maintain its profits. In an interview with CNBC on Wednesday morning, Toor Xu, CEO of DoorDash, said the company is just getting started.
– We’re in one the largest but still the least penetrating categories, ”Xu said, noting that only 10% of restaurant traffic is shipped today. The company also deals with the transportation of food and more.
See The epidemic has more than doubled the food delivery applications business
Tom White, an analyst at DA Davidson, said in an interview that while he expects the “growth rate to return to Earth” after the introduction of the coronavirus vaccine, DoorDash has an advantage due to its pre-pandemic market position.
Prior to the offering, DoorDash’s key shareholders were early-stage investors, SoftBank Vision Fund, which held 24.9% in Class A shares, Sequoia Capital with 20.4% and Greenview Investment with 10.5%. Because of the company’s share structure, which adds 20 votes to each Class B share, Xu and its co-founders, Andy Fang and Stanley Tang, have 69% of the voting rights.
The co-founders were joined by a couple of delivery associates called the company’s Dashers and Trading Partners with a virtual bell Wednesday morning on the New York Stock Exchange.
The company, which together with Uber Technologies Inc. UBER
A Lyft Inc. LYFT,
and other concert companies recently spent more than $ 200 million on a ballot in California to avoid rating their drivers and delivery workers, U.S. Dashers of at least five thousand shipments said they would receive a “cash reward” of between $ 500 and $ 20,000. The amounts are based on the number of deliveries made by employees and are present in their account until Friday.
Canadian and Australian dashers also receive cash based on different criteria. Concert workers will receive more cash through this program until May, DoorDash said.